The human ability to innovate underpins the story of our civilization. Breakthroughs achieved by countless generations are responsible for the conveniences we enjoy today. An unending series of tiny improvements and major advances has led us from humble shelters and small settlements to a globally networked economy. We have harnessed nature, gathered resources, conceived inventions, and made discoveries that continue to create more abundance, with each passing day.
Although this tradition of innovation is directly responsible for the modern world, it hasn’t always been nurtured by an organized support system. In the past, innovation was often left to individuals with ideas and a personal vision to see them brought to life. Thankfully, we have now transitioned to an era in which pioneering breakthroughs and transformative ideas are receiving the active support of a nurturing ecosystem. In my opinion, the most exciting thing about the global startup culture, which has taken our world by storm, is the coming together of capital and ideas. Across every industrial sector, venture funds are seeking out the next big innovative idea, resulting in the best possible outcome for both parties. For a compulsive entrepreneur like me, this state of affairs gives me tremendous hope for the future.
In particular, I have been very impressed by the initiatives being undertaken in the UAE, to incubate and mentor new startups. As a nation that is actively diversifying its economy, this is not surprising in itself. However, a closer look at the measures and programs undertaken to support innovative new ventures in the UAE, reveals some interesting specifics that deserve our attention.
Why the UAE?
According to a report the World Economic Forum released in April 2019, the UAE was home to one-fifth of the Arab world’s 100 most promising startups. Only a couple of months prior to that, the Dubai Statistics Center had revealed that early-stage startups accounted for about 50% of all companies registered in Dubai and contributed 47% to the UAE’s annual GDP. These are especially impressive figures for an already well-developed economy, widely acknowledged as one of the best managed in the region.
Such dominant numbers are typically representative of startup ecosystems in developing economies, which are being transformed after a period of relative inactivity. For an economy as vibrant as the UAE to display these trends is very encouraging indeed. The credit for such dynamism must, at least in part, go to the strategic and philosophical direction embraced by the UAE administration. Clearly, the decision to orient the Emirates towards a future-ready and tech-enabled path has been backed up by real-world initiatives that are bearing fruit. For instance, the governments of Abu Dhabi and Dubai are leading the region in creating ‘sandboxes’, to test new concepts, as well as resilient funding mechanisms.
The fundamental dynamism of the UAE business community is also playing an active role, by engaging with the emerging network of industry bodies and institutions. In only its second year, the recently held Techstars ‘Demo Day’ in Dubai already boasted a network of 1,600 companies and a market cap of $17 billion, within its accelerator portfolio. Initiatives such as in5 Dubai and the Dubai Future Accelerators program are mentoring yet another network of fledgling entrepreneurs in Dubai, while Abu Dhabi is home to the Plug and Play Tech Center and the startAD accelerator program. Dubai Silicon Oasis provides seed capital and support programs and also features a tax-exempt Free Zone. These are only a few of the many diverse initiatives that are empowering the growth of groundbreaking new ventures in the nation.
An ecosystem primed to drive innovation
The UAE offers a lot of fundamental positives that empower aspiring entrepreneurs – whether it is world-class infrastructure, or being the preferred venue for regional startup events, workshops and mentorship programs. Perhaps even more critically, the UAE’s investment community has displayed a unique dynamism over several decades that is ideally suited for the support that emerging entrepreneurial ventures crave. When you read about the success of an Eat Clean ME or Souq.com, or the growing buzz around a BitOasis or Yallacompare, don’t be surprised. These, and hundreds of other rising stars, are not simply getting lucky. A combination of regional talent, government initiatives and an investor community with the foresight to leverage innovation are the key to these success stories.
There are several advantages that startups in the UAE enjoy that are unique to the nation. Much like Singapore and Hong Kong in South-East Asia, Dubai and Abu Dhabi retain their regional identity but are attractive to expatriates and corporations from all around the world. The per capita purchasing power within the Emirates is a huge positive, which entrepreneurs with the right product or service can leverage to grow rapidly.
Ultimately, opportunities only matter when they are seized. Positives are only of consequence when they translate into results. The most heartening thing about the startup culture within the UAE is that strong fundamentals are aligning with the right support. In my opinion, the UAE’s well-deserved reputation for embracing change will be further cemented by the vibrant startup ecosystem that is taking shape within its borders.
