The UAE has strengthened its position as a regional hub for startups, driven by a supportive investment environment, flexible business policies and innovation-led legislation. The country leads in global indicators for startups, backed by continuous efforts to foster innovation and enhance competitiveness.
According to Statista, the UAE registered over 5,600 startups by the second quarter of 2024, positioning it as the top incubator for startups in the GCC. The fintech sector leads with over 550 companies operating across the country.
According to Startup Genome, the UAE’s startup ecosystems in Abu Dhabi, Dubai and Sharjah continue to grow rapidly, driven by proactive policies in key sectors.
Abu Dhabi retained its position as the fastest-growing startup ecosystem in the Middle East and North Africa, achieving $4.2 billion in value between mid-2021 and the end of 2023. During this period, early-stage startups raised $224 million, while venture capital funding exceeded $1 billion, fueled by activity within Abu Dhabi’s Hub71.
Ahmad Ali Alwan, CEO of Hub71, stated, “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 noted the growth in the startup community, supported by Hub71’s programmes and partnerships.
Hub71 currently supports 126 companies and provides 423 job roles. It aims to further its support for sectors such as sustainability through initiatives like Hub71+ ClimateTech.
Dubai’s startup ecosystem reached a value of over $23 billion by the end of 2023, ranking first in the Gulf and second regionally, according to Startup Genome. In5, a subsidiary of TECOM Group, has supported 1,000 startups and facilitated Dh7.8 billion in funding since its launch in 2013.
Sharjah also plays a significant role in the UAE’s startup growth, hosting around 60,000 businesses across free and industrial zones. By the end of 2023, the value of Sharjah’s startup ecosystem stood at $424 million, with early-stage funding reaching $39 million.
