Dubai has long been one of the leading countries in the middle east when it comes to development, investments and overall tourism. This has led to Dubai becoming a local hub for many businesses overall.
And when it comes to technology this is no different. Dubai is home to a large number of startups that show promise and innovation. When looking at the funding these startups receive, we also see a growth year by year, so perhaps there is no better time than right now to be an investor or entrepreneur in the market.
In this article we will explore how tech companies are doing in 2023, what the reason for their success is, and how the authorities in Dubai are helping grow these companies into successful and mature companies.
The startup scene in Dubai
In order to achieve success, a startup needs a good foundation. As a result of legislation and the general populations open minds, Dubai has managed to keep a unique culture and perspective, while also attracting international investors from around the world.
The unique and strategic location and state-of-the-art infrastructure of Dubai has also helped entrepreneurs grow their companies rapidly in the past decade. Thus, it is fair to say that Dubai has been able to crack the code in terms of helping new entrepreneurs make a name for themselves.
And looking deeper into this area, there is support to be found in every level of society. For instance, it is possible for startups to raise capital through a series of official funding programs, as well as rich individual private angel investors.
In the past years Dubai has also been experiencing a growing number of incubators and accelerators looking for the next big thing, especially when it comes to technology which outpaces all other areas in terms of funding.
The common thing for all of these factors, is that the people involved not only wish to invest in promising startups, but also help develop the local startups to further grow the economy and startup scene in general.
This foundation has ensured that the startup scene in Dubai is diverse, allowing businesses and startups to operate in a wide range of industries such as fintech, e-commerce, logistics, healthtech, and more.
And especially Fintech is one of the fastest-growing sectors, driven by a large unbanked population, as well as a growing demand for digital financial services. Other emerging sectors include artificial intelligence, blockchain, and the Internet of Things.
Government initiatives and support
Tech startups can also look to the government for help, by applying for funds from established funds, such as the Mohammed Bin Rashid Innovation Fund, the Dubai Start-up Hub, the Dubai Innovation Index and the Dubai ‘Smartpreneur’ competitions, which makes it possible for companies without capital to gain a foothold in their industry, hire employees and invest in technologies.
And just recently, in december of 2022, the government launched a new initiative called Future 100, which specifically is designed to help the 100 largest and most promising startups in the country.
The program was launched by the Ministry of Economy and the Government Development and the Future Office, which aims to pivot the country away from reliance of fossil fuels, with the goal of supporting a wide range of industries, from green energy, to the latest technology startups.
Finally, the government is also allowing fintech companies to “test the waters”, by developing services and technologies that are not required to comply with the typical regulatory requirements while in the early phase.
This has made it cheaper and more efficient to develop technologies to begin with, allowing startups to test their products without having to invest large sums from the start.
While these companies will still have to comply with all regulations once they go live, this initiative lowers the barriers of entry, enables a faster time-to-market and thus improves the overall innovation and effectiveness of smaller startups.
Future outlook and opportunities
When looking at the positive attitude and entrepreneurial spirits of the local populations, and coupled together with the large amount of capital available from investors and government initiatives, it is difficult to imagine the startup scene slowing down anytime soon.
The government has on numerous occasions shown a keen interest in promoting the local startups, helping them grow faster and more effectively, and the strategic location and reputation of Dubai has made it one of the best areas in the middle east, and perhaps the world, for new startups to flourish.
When also considering the advanced infrastructure, such as a highly educated workforce, high quality internet and office spaces, there are many positives that speak for a continued growth of the startup sector in Dubai.
