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How the UAE is building one of the world’s fastest-growing startup ecosystems

Flexible policies, digital infrastructure, and investor-friendly regulations continue to drive the UAE’s startup ecosystem.

How the UAE is building one of the world’s fastest-growing startup ecosystems
[Source photo: Krishna Prasad/Fast Company Middle East]

The UAE continues to strengthen its position as one of the world’s leading destinations for startups and entrepreneurship, supported by advanced regulations, digital infrastructure, and economic policies designed to attract global talent and investment.

Business leaders and industry specialists told Emirates News Agency that the country’s strong performance in international entrepreneurship rankings reflects the success of its broader economic model in creating an integrated, globally competitive business environment.

According to Diana Cichy, founder and CEO of CICHE International Trade & Investment, the UAE’s strategic position connecting Europe, Asia, and Africa continues to make it highly attractive for startups and international businesses. She said the country’s connectivity allows companies to access billions of consumers within a single flight range, while its expanding aviation network further strengthens its role as a global trade and business hub.

Cichy also pointed to the UAE’s business-friendly ecosystem, including free zones, full foreign ownership laws, simplified company setup procedures, and long-term residency initiatives such as golden visas, as key drivers behind its appeal to entrepreneurs and investors.

She added that the UAE’s multicultural environment, home to nearly 200 nationalities, has transformed the country into a global platform for connectivity and collaboration.

“The government’s move towards transforming 50% of government services through artificial intelligence reflects a strong forward-looking vision,” she said, noting parallel efforts to increase AI readiness across the private sector.

Meanwhile, Willem van Wyk, Managing Director of HDI Global’s Dubai office, said the UAE has strengthened its position as a destination for startups and innovation-led businesses through advanced regulations and a sustained focus on digital transformation.

He highlighted the country’s growing fintech ecosystem, supported by institutions such as the Central Bank of the UAE, the Dubai International Financial Center, and Abu Dhabi Global Market.

Van Wyk noted that the sector’s future growth will increasingly depend on the ability of ecosystems to scale securely and sustainably, particularly as embedded finance, artificial intelligence, and open finance models continue to expand globally.

For Aaqib Gadit, founding partner at Disrupt.com, the UAE has evolved into one of the world’s leading launchpads for startups looking to scale internationally.

He said the decision to establish operations in the UAE rather than global centers such as London or San Francisco was driven by practical advantages, including infrastructure, policy support, access to funding, and global market connectivity.

Gadit added that the UAE was among only four countries globally to meet or exceed all thresholds within the entrepreneurship ecosystem index, highlighting its strength across multiple business indicators.

He also noted that policies such as full foreign ownership, tax exemptions for eligible small businesses, and unrestricted capital movement have helped remove barriers for startups looking to expand internationally.

The UAE’s entrepreneurship ecosystem is also supported by several government-backed initiatives and funding platforms that accelerate innovation and business growth.

These include the Emirates Growth Fund, which supports Emirati companies across sectors such as manufacturing, healthcare, agriculture, and advanced technology, and the Khalifa Fund, which provides financing, training, and support services for entrepreneurs and SMEs.

Meanwhile, Hub71 continues to support startups through investment connections, partnerships, and growth programs, while the Mohammed bin Rashid Innovation Fund offers tailored programs to help innovators overcome operational and financial challenges.

Last month, the Dubai Entrepreneurs Campus, a joint initiative between the Dubai Department of Economy and Tourism and the Dubai Chamber of Digital Economy, announced the completion of the first phase of its accelerator programs aimed at helping entrepreneurs transform innovative ideas into scalable businesses.

The UAE recently topped the Global Entrepreneurship Monitor Report 2025-2026 for the fifth consecutive year and ranked among the top five countries globally for startup access to international markets.

The country was also ranked among the world’s top five startup ecosystems and placed first regionally in the StartupBlink Global Startup Ecosystem Index.

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