UAE emerges as a global hub for start-ups
Flat6Labs study sees rise in female-founded units
Flat6Labs, a Cairo-based seed and early-stage venture capital firm has reported a substantial increase in international start-ups seeking to establish their global hub in the UAE.
The data, derived from an analysis of over 4,000 applications spanning five cycles of its Ignite seed funding and incubator programme from June 2021 to October 2023, underscores the UAE’s growing stature as a preferred destination for global business leaders.
Over the two-and-a-half-year period, applications from start-ups outside the Middle East and North Africa (MENA) surged by an impressive 284%, affirming the success of initiatives by the UAE to attract the world’s most innovative enterprises.
Originating in the UAE
Flat6Labs reported a consistent doubling in the number of applications from UAE-based start-ups during the same period, reflecting a significant uptrend.
Ryaan Sharif, General Manager at Flat6Labs UAE, noted: “The steady increase in programme applications indicates the UAE’s rapid ascent as a global hub for tech entrepreneurship.
“Factors such as an active VC community, favourable legislation, a rich talent pool, high standard of living, and its strategic position as the gateway to the MEA region make it ideal for disruptive businesses.”
The report also highlighted a 244% increase in applications from female-founded start-ups, constituting 32% of all Ignite programme applications.
Sharif commented on the evolving landscape: “Female founders are experiencing greater opportunities, with governments and investors recognising the economic benefits of inclusivity in the entrepreneurial ecosystem.”
Trending sectors
Flat6Labs offered insights into the sectors attracting entrepreneurial interest, with healthtech start-ups leading the pack, followed closely by fintech, foodtech, transport, and logistics ventures.
GreenTech companies also garnered significant attention, reflecting the increasing focus on sustainable investment opportunities.
About 2024, Sharif projected strong investor interest in start-ups aligned with government-backed sectors.
“The most promising areas for disruptive innovations in 2024 include fintech, Generative AI, e-commerce enablement, healthtech, and renewable energytech,” he added.
Flat6Labs invest annually in over 100 innovative start-ups. With a total AUM exceeding $135 million, the firm manages multiple seed funds and boasts partnerships with over 25 leading institutions.
The company’s start-up programmes provide crucial support services and connections to a network of mentors, investors, and corporations, facilitating the goals of thousands of entrepreneurs.
Featured image: The UAE is consciously attracting the world’s most innovative enterprises. Image: Austin Distel
Last Updated on 11 months by News Desk 1
