PC: IBS Intelligence
Strong Performance in Regional Startup Funding
In the UAE, in terms of growth in the startup ecosystem, September had a record period with companies securing $114.32 million in funding, its highest level recorded since August’s $76.87 million, according to Rasmal, a digital media agency that focuses on entrepreneurship. The rise in funding places the UAE as one of the important key players in the regional startup landscape. But, at such phenomenal growth, it let UAE come second to Saudi Arabia, which had raised $165.34 million during the same period.
UAE Tops in Startups, even if Saudi Arabia Raises More Funds
Saudi Arabia topped the total sum of funds raised but, interestingly, took the second position in the number of startups by the UAE. Of course, the report has it that 28 startups in the UAE were able to receive investment in September. Meanwhile, Saudi Arabia recorded 13 start-ups and eight in Egypt. A greater number of the startups considered this to reflect the influence the UAE has acquired over time as a startup hub, particularly in cities like Dubai and Abu Dhabi, which have developed very vibrant ecosystems very highly conducive to innovation and entrepreneurship.
The report further noted, “The fact that hundreds of startups are present in the UAE obviously highlights its leadership in creating an environment that is conducive to innovation.” Dubai and Abu Dhabi, for example, developed ecosystems that attract entrepreneurs through accelerator programs and favourable tax policies.
Regional Overview: Health and Attractiveness of the Ecosystem
A total of 60 startups raised $328.3 million in funding led by 36 investors in September alone in the region. Rasmal described this development as a sure indicator that the region’s economy remains sound and attractive to both investors and entrepreneurs. Characterising the energy of the innovation-driven industries in the region is diversified startups in various sectors, especially the technology sector.
According to a recent study, the city tops for startup investment in Dubai
Among all the cities in that region, Dubai was the most attractive for investment by startups. It received $107.32 million in funding spread across 25 startups, which further underlines the city’s position as a regional powerhouse for entrepreneurial ventures. Its world-class infrastructure, business-friendly policies, free-zones, and easy access to capital have resulted in making this city the go-to place for startups that wish to grow and scale.
As the report pointed out, “With its strategic location, business-friendly policies, and vibrant hubs such as Dubai and Abu Dhabi, the UAE continues to attract a broad range of startups, especially in technology-driven sectors such as FinTech, PropTech, and e-commerce.”
The UAE’s startup ecosystem continues thriving with significant growth in both the count of startups and the amount of funding raised. While Saudi Arabia invests in general at a much higher level, the UAE appears to be a leader in startups/ number and particularly in FinTech and e-commerce. This makes the country a strategic hub of entrepreneurial activities for the region. The whole infrastructure, from tax policies to strategic locations of Dubai and Abu Dhabi, ensures the primary location of the UAE for startups founders and investors.
