Will Your Startup Thrive in the UAE?
The UAE has been quietly, but effectively, building itself into a global magnet for startups. If you've been following the news, you'll know that the region's entrepreneurial scene is buzzing, and it's not just hype. Recent data and investor sentiment confirm what many already feel: the UAE is a top spot for new businesses.
Just last month, startups across the MENA region collectively raised a significant US$289 million, a healthy 25 percent jump from April. A big chunk of that, US$86.7 million across 14 deals, came right out of the UAE. This isn't a one-off. It coincides with the Dubai Future District Fund (DFDF) reporting over US$1.65 billion in capital commitments last year, backing more than 190 companies. These aren't just big numbers; they represent real support for businesses trying to make their mark.
According to Abdumalik Mirakhmedov, an entrepreneur and tech investor based in the UAE, the DFDF's impact is part of a larger, ongoing effort by the UAE government. He's the Director and co-founder of Scalo Technologies, a UAE tech venture company, and he points out that the government has been instrumental in crafting a business-friendly environment that appeals to both local and international founders.
"The business environment here is phenomenal," Mirakhmedov says. "The government has established a regulatory framework that is so comfortable and allows startups to build with confidence."
But it's not just about the money. Mirakhmedov emphasises that the appeal of places like Dubai and Abu Dhabi goes much deeper. "Dubai and Abu Dhabi offer everything a startup needs to grow – access to capital, innovation infrastructure, talent, and a quality of life that’s hard to beat."
He also highlighted the ease of connecting with global partners, which is a significant advantage for a global technology group like his. Startups in the UAE find it relatively easy to connect with venture capital firms and angel investors. Plus, there's a strong support system with accelerators, co-working spaces, and research centres designed to help early-stage companies find their footing. This creates a fast-moving and supportive atmosphere for new businesses.
Key sectors like fintech, AI, mobility, and e-commerce have seen rapid growth. This isn't by chance; it's the result of strategic policy reforms, the availability of long-term visas, and government-backed funds specifically aimed at helping young companies expand.
Mirakhmedov specifically points to Dubai and Abu Dhabi as prime locations for growth, citing dedicated free zones for tech firms, straightforward licensing processes, and the absence of income tax as factors that simplify launching and expanding a business.
"There’s also real respect here for people who succeed," he adds. "Entrepreneurs feel welcome, and that’s backed by a professional business culture and a strong sense of personal safety." As more global startups look for stable places to grow, the UAE stands out not just for its practical tools and support, but for creating the right conditions for success.
