According to international institutions, the UAE leads global indicators related to startups due to its continuous efforts in creating a supportive investment environment for innovation. These efforts have also reflected positively on the country’s ranking in global competitiveness indices.
Recent statistics from Statista reveal that the UAE topped the GCC countries as the leading incubator for startups, with more than 5,600 startups registered across the country by the second quarter of 2024.
UAE startups
The data highlighted that the UAE is leading the region in the fintech startup sector, with more than 550 companies currently operating in this field.
A recent report by the global consulting and research firm, Startup Genome, affirmed that the UAE’s various emirates continue to advance in international rankings, emerging as the fastest-growing startup ecosystems in the region.
This growth is driven by the emirates of Abu Dhabi, Dubai, and Sharjah, which foster continuous and sustainable growth for startups by creating a proactive and incentivising environment in key sectors.
According to the report, Abu Dhabi maintained its position as the fastest-growing startup ecosystem in the Middle East and North Africa between the second half of 2021 and the end of 2023, achieving $4.2bn in value within its startup ecosystem during the same period.
The report also indicated that early-stage startup funding totalled $224m, while venture capital funding between the second half of 2021 and 2023 exceeded $1bn, driven by the growing activities of startups operating under Abu Dhabi’s global tech ecosystem, Hub71.
Ahmad Ali Alwan, CEO of Hub71, said: “Hub71 is witnessing increased interest from tech startups that are contributing to tackling global challenges, creating significant economic value, and generating new job opportunities in Abu Dhabi.”
He added that the emirate’s startup community continues to grow, driven by Hub71’s dedicated programmes, strategic partnerships, and commitment to innovation, which strengthens Abu Dhabi’s position as a leading and fast-growing global technology hub.
Alwan also emphasised Hub71’s ambition to further support startups across various sectors, including sustainability, through the Hub71+ ClimateTech ecosystem, in line with Abu Dhabi’s economic vision and the aim of fostering innovation and growth.
He explained that Hub71 focuses on facilitating startups’ access to capital, talent, and corporate partnerships, supporting entrepreneurs in scaling their businesses rapidly, thereby enabling successful ventures and contributing to an integrated ecosystem capable of supporting Abu Dhabi’s economy.
Startups operating under the Hub71 umbrella continue to create significant job opportunities across various sectors in the emirate, currently providing more than 423 job roles across 126 companies.
Meanwhile, Dubai has strengthened its leadership in creating ecosystems that support startup growth, ranking at the top of both global and regional startup ecosystem valuations.
Dubai ranked first in the Gulf and second in the region in this field, with the ecosystem value reaching over $23bn by the end of 2023, according to Startup Genome.
In5, a TECOM Group subsidiary, has supported 1,000 startups, raising AED7.8bn ($2.1bn) in funding since its inception in 2013, continuing to play a pivotal role in promoting the sustainable economic growth of these companies in Dubai.
Sharjah holds a global position by making significant contributions to business growth in the UAE, hosting around 60,000 small, medium, and startup companies distributed across six free zones and 33 industrial zones.
The value of Sharjah’s startup ecosystem reached $424m by the end of last year, with early-stage funding totalling $39m.
