The city at the heart of the Middle East’s startup scene
How Abu Dhabi became a magnet for tech startups
Though Abu Dhabi's startup scene is young, “it’s taking the lead.” Says Jihad Sadiq, CEO of FortyGuard, which uses data-driven heatmaps to inform city cooling initiatives. It's going to be the Middle East's Silicon Valley".
It’s a bold claim. But Abu Dhabi has been investing heavily in cultivating a tech ecosystem, providing an environment that encourages growth and innovation. It’s a strategy already paying dividends, making the city a magnet for young tech companies with big ideas.
What exactly is it making startups flock to Abu Dhabi?
Plug and play access
"The minute something new comes out globally, Abu Dhabi is always one of the top five cities that adopts it," says Saeed Halabi, CEO of Sauce Capital, described as a brand inceptor in the food and beverage world. Tech-savvy, early-adopting consumers are a crucial ingredient for companies like his. But the emirate’s financial infrastructure is just as important for getting products developed, pre-market. Abu Dhabi’s pro-business, pro-tech regulatory framework is a pull for finance as much as tech.
FinTech startup Securrency builds solutions to bridge traditional banks and investors with blockchain and decentralized finance (DeFi). CEO John Hensel says they first chose Abu Dhabi as their base because, “we sought out a jurisdiction that held an incredibly high standard for compliance, but that was also tech-forward.” The Abu Dhabi Global Market (ADGM) was one of the first regulators to introduce a comprehensive and bespoke regulatory framework for spot virtual asset activities.
But Securrency also found a wealth of funding opportunities, “We discovered the investment community was strong, including everything from VCs to Sovereign Wealth Funds,” Hensel continues.
Amer Aidi, Head of Marketing and Operations at Hub71, Abu Dhabi’s global startup ecosystem, says this kind of access to funding is one of the major draws for startups coming to Abu Dhabi. But beyond financial support, Abu Dhabi helps bridge access gaps across multiple facets of the business ecosystem, to help startups succeed.
First, capital access like Securrency discovered, startups also have access to the AED 2Bn (USD $545m) Abu Dhabi Investment Office (ADIO) Innovation Program, which invests in high-growth areas like ICT, AgTech, biopharma, tourism, and financial services. Recent partnerships include tech luminaries Anghami, Bespin Global, and STARZPLAY – the regional powerhouses in the fields of music streaming, cloud management and OTT content. And there are flexible incentives available from Hub71 itself. Eligible startups have the chance to apply to Hub71’s Incentive Program and benefit from equity-free, which can be used for a range of business and personal support services, including housing, office space, insurance, and workforce support, among others.
Second, market access, “Abu Dhabi is a soft landing for the wider GCC, Middle East, and North Africa,” Aidi says. Third, access to talent. According to one global skills report, the UAE’s workforce ranks first for business skills like entrepreneurship and leadership. Initiatives like the UAE’s National Program for Coders – which aims to add 100,000 coders to the workforce over the next five years – are deepening the tech talent pool.
CEO of Securrency
CEO of Securrency
Finally, network access. “Let’s say you’re in the health tech space. The regulators are right next to you. You can literally walk over, knock on the door and say ‘hey, can we talk for a couple minutes?’ Everybody’s under the same roof.”
Nurturing ecosystem
Halabi of Sauce Capital describes the ecosystem around Hub71 as ‘delayered’, “There is no layer between access to funds, founders, government officials. Everything we needed was only ever a phone call or email away.”
Hub71 startups operate within a vibrant ecosystem of local tech companies, accelerators, and world-class talent. It has its own, three-floor, 1,200 desk co-working space, where its more than 200 startups, spanning everything from FinTech and HealthTech to EdTech and AI, can operate and collaborate. And with its location at ADGMO, Hub71 also offers easy access to its capital and government partners – and the wider business community.
Mental VR Co-Founder & CEO
Mental VR Co-Founder & CEO
That means plugging into a supportive network of peers for advice and collaboration. It means access to regulators, VCs, and sovereign wealth funds. But it also means access to large, traditional organizations that can be foundational clients for fledgling companies. Hani Abu Ghazaleh, Co-Founder and CEO of Mental VR, an immersive vocational training platform, says Abu Dhabi made the perfect base because of “the proximity to large organizations that we’re targeting in the energy and defense sectors.”
But Ghazaleh says the city’s lifestyle was attractive, too: “Abu Dhabi is a great city to live in, with stunning beaches, spectacular nature, amazing museums, and entertaining attractions.” These qualities are pivotal in attracting the talent required for tech startups.
Golden standard of living
If these are reasons for tech talent and entrepreneurs to come to the city, Golden Visas are how they make it a long-term home. Under the scheme, talented individuals, investors and entrepreneurs among others are granted renewable 10-year residence for them and their family, without the need for a sponsor.
Halabi was one of the first recipients of the Golden Visa, something he says made him feel immediately welcome, “I’m an expat but still treated as if I’m part of society. It actually attracted me to buy a house, because it gave me the perk of an easy mortgage through the bank.” For Sadiq, the scheme had a transformational effect on Fortyguard. “It gave us control over our own destiny, allowing us to bring and retain talent in the country without limitations.” Ghazaleh agrees, “It gives investors and entrepreneurs a sense of security.
This sense of security is of a piece with the general stability of Abu Dhabi, says Aidi: “There is a lot of instability in the world right now. Abu Dhabi offers mental stability, economic stability, safety. You can’t take these things for granted anymore.”Further peace of mind is granted by the Abu Dhabi Instant License. Businesses in qualifying sectors – which range from gaming to banking services – can acquire a license to trade in Abu Dhabi in an online process that only takes four minutes.
The startup advantage
Since 2019, Hub71 has been on a powerful trajectory. “Startups often disrupt, they move faster and operate at a speed others can’t keep up with,” says Sadiq. “Abu Dhabi and the UAE are like that too.” And with a nimble setup, Hub71 has launched remarkable success stories in its short history and is continuously committed to driving growth across a number of strategic sectors, aligned with the UAE and Abu Dhabi’s economic diversification efforts, including FinTech, CleanTech, HealthTech, Mobility, Logistics, and Travel, as well as EdTech.
Ghazaleh agrees, “This is the tip of the iceberg for Abu Dhabi. I’m excited to see this ecosystem reach its full potential in the coming years.”
With an established ecosystem, plentiful support from government and investors, and a culture that actively welcomes newcomers with innovative ideas, the incredible momentum of Abu Dhabi’s startup scene is set to go from strength to strength – much like the aspirations of the successful entrepreneurs already calling the city home.
CEO of Securrency
CEO of Securrency
Discover how you can
thrive in Abu Dhabi.