ABU DHABI: The UAE has firmly established itself as a leading hub for start-ups in the region, driven by its appealing investment environment, flexible business regulations, and innovation-focused legislation. International institutions highlight that the UAE excels in global start-up indicators, reflecting its ongoing commitment to fostering a supportive investment landscape for innovation. This dedication has positively influenced the country’s rankings in global competitiveness indices.

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Recent statistics from Statista reveal that the UAE leads the GCC as the top incubator for start-ups, with over 5,600 registered by the second quarter of 2024. The data also indicates that the UAE is at the forefront of the fintech sector, housing more than 550 companies in this field.

According to a report by the global consulting firm Startup Genome, the UAE’s emirates continue to climb in international rankings, emerging as the fastest-growing start-up ecosystems in the region. Abu Dhabi, Dubai, and Sharjah are pivotal in creating a conducive environment for sustainable growth in key sectors.

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The report states that Abu Dhabi retained its title as the fastest-growing start-up ecosystem in the Middle East and North Africa from late 2021 to 2023, achieving a remarkable US$4.2 billion in ecosystem value. Early-stage start-up funding reached US$224 million, with venture capital exceeding US$1 billion, largely due to the success of Hub71, Abu Dhabi’s global tech ecosystem.

Ahmad Ali Alwan, CEO of Hub71, noted the rising interest from tech start-ups in addressing global challenges and creating economic value. He emphasized Hub71’s commitment to innovation and support for various sectors, including sustainability, through the Hub71+ ClimateTech ecosystem.

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In Dubai, the start-up ecosystem is valued at over US$23 billion, making it a leader in both global and regional markets. In5, a TECOM Group subsidiary, has supported 1,000 start-ups since 2013, raising AED7.8 billion in funding. Meanwhile, Sharjah boasts around 60,000 small and medium enterprises, contributing significantly to the UAE’s start-up landscape, with its ecosystem valued at US$424 million.