The UAE is reinforcing its position as one of the world’s most attractive and secure destinations for startups, as fresh data and investor sentiment point to rising momentum across the regional entrepreneurial ecosystem.
MENA startups raised a combined $289 million in May, a 25% increase from April, with a Wamda report showing that the UAE contributed $86.7 million across 14 deals.
Coinciding with the announcement, the Dubai Future District Fund (DFDF) reported more than $1.65 billion in capital commitments last year, offering strategic backing to over 190 portfolio companies.
UAE-based entrepreneur and tech investor Abdumalik Mirakhmedov says DFDF’s influence is part of a wider, sustained effort by government authorities in the UAE that have created a dynamic, pro-business landscape appealing to both regional and international founders.
“The business environment here is phenomenal,” says Mirakhmedov, Director and co-founder of Scalo Technologies, the UAE tech venture company. “The government has established a regulatory framework that is so comfortable, and allows startups to build with confidence.
“The country’s appeal to entrepreneurs goes well beyond funding. Dubai and Abu Dhabi offer everything a startup needs to grow – access to capital, innovation infrastructure, talent, and a quality of life that’s hard to beat.”
Added Mirakhmedov: “The UAE allows us communicate with more prospective partners as a global technology group focused on fast growing sectors of the digital economy.”
“Startups here have easy access to venture capital and angel investors. Accelerators, co-working spaces, and research centres help early-stage companies get off the ground, creating a fast-moving and supportive startup scene.
“Sectors like fintech, AI, mobility, and e-commerce have grown rapidly, thanks to policy reforms, long-term visas, and government-backed funds aimed at helping young companies scale.”
Mirakhmedov points to both Dubai and Abu Dhabi offering the ideal setup for growth, with free zones built for tech firms, simple licensing, and no income tax all making it easier to launch and expand.
“There’s also real respect here for people who succeed,” he says. “Entrepreneurs feel welcome, and that’s backed by a professional business culture and a strong sense of personal safety. As more global startups look for stable places to grow, the UAE stands out – not just for its tools and support, but for creating the right conditions to succeed.”
