UAE cements its status as a global startup hub amid growing deal flow and policy support
Business

UAE cements its status as a global startup hub amid growing deal flow and policy support

The United Arab Emirates continues to climb the ranks of the world’s most founder-friendly markets, buoyed by a surge in venture funding and a regulatory environment designed to accelerate high-growth companies.

New figures from Wamda show that startups across the Middle East and North Africa secured US$ 289 million in May, up 25 percent from April. The UAE accounted for US$ 86.7 million across 14 deals, reinforcing its leading share of regional investment.

That momentum is echoed at the institutional level. The Dubai Future District Fund (DFDF) disclosed that it secured US $1.65 billion in capital commitments during 2024, channeling resources to more than 190 portfolio companies focused on frontier technologies and digital services.

Abdumalik Mirakhmedov, director and co-founder of UAE-based Scalo Technologies, says the fund’s activity is part of a wider government playbook that lowers barriers for entrepreneurs. “A streamlined regulatory framework, zero personal income tax, and long-term visas remove much of the early-stage friction founders face elsewhere,” he noted.

Analysts add that the country’s value proposition extends well beyond funding:

  • Infrastructure and talent. Dedicated free zones in Dubai and Abu Dhabi give startups plug-and-play offices, sandboxes for product testing, and simplified licensing.

  • Sector depth. Fintech, artificial intelligence, mobility, and e-commerce benefit from targeted incentives, including government-backed accelerators and grant programmes.

  • Liveability. World-class amenities and a reputation for personal safety help founders attract and retain global talent.

These factors have made the UAE a preferred launchpad for regional and international startups seeking scale. “As more founders hunt for jurisdictions that combine stability with opportunity, the UAE’s ecosystem checks every box,” Mirakhmedov said.

Industry observers expect deal activity to remain robust through the second half of 2025 as sovereign funds, family offices, and overseas investors continue to scout the Gulf for high-growth assets.

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