The United Arab Emirates (UAE) is home to three of the top ten startup ecosystems in the Middle East and North Africa region, namely Dubai, Abu Dhabi, and Sharjah. As per the Global Startup Ecosystem Report (GSER) 2024, Dubai excelled in funding with a perfect score of 10, showcasing innovation through early-stage funding and investor activity. It also boasted five unicorns, standing out as one of 19 emerging ecosystems with four or more unicorns in the past decade. Abu Dhabi experienced the fastest growth in the Mena region, with a 28% increase in ecosystem value, while Sharjah secured the 7th spot in the rankings.
Sharjah’s success can be attributed to various factors, including its strategic location, the substantial $1.5 billion annual investment in education, and its ranking in the Knowledge and Performance categories. Other emerging startup ecosystems in the Mena region that made it to the top rankings include Tel Aviv, Cairo, and Riyadh. Tel Aviv remains the leading ecosystem in the region and globally, contributing significantly to Israel’s economy. Cairo showed progress by moving up in the Emerging Ecosystems Ranking, while Riyadh and Abu Dhabi also saw improvements in their rankings.
Abu Dhabi emerged as the second-best Mena ecosystem in performance, showcasing the size and performance of its ecosystem based on tech startup value created through exits and funding. The establishment of Hub71, Abu Dhabi’s global tech ecosystem, has been instrumental in accommodating over 315 startups, raising $1.5 billion in funds since its inception in 2019. Additionally, Muscat and Sharjah also demonstrated significant growth in ecosystem value, further solidifying their positions in the startup landscape.
Sharjah’s strengths in various sectors, such as Cleantech, Digital & Creative Industries, and Edtech, have been highlighted in the GSER. The emirate’s success is evident through its rankings in different categories, including ‘Bang for Buck,’ Funding, and Market Reach. Factors like strategic location, substantial investment in education, numerous Free Zones and industrial zones, and supportive business establishment services have contributed to Sharjah’s thriving startup ecosystem. Sheraa, Sharjah’s flagship startup incubator, has played a crucial role in driving growth by providing a founder-focused environment for innovative ventures to flourish.
Najla Al Midfa, vice chairperson of Sheraa, emphasized Sharjah’s commitment to entrepreneurship and nurturing homegrown talent. By collaborating with stakeholders across the ecosystem, Sheraa aims to create a conducive environment where early-stage ventures can thrive with access to essential resources. The focus is on scaling impact by enhancing startup offerings and driving growth in key sectors like sustainability, edtech, advanced manufacturing, and creative industries. This proactive approach is expected to further boost Sharjah’s position as a dynamic global hub for innovation and entrepreneurship in the region.
