In 2022, Dubai-based startups significantly surpassed their previous year’s results by raising over $2 billion.
The figures were from the Dubai Chamber of Digital Economy, a prominent division of Dubai Chambers, has recently unveiled its latest report on Dubai’s flourishing digital economy. Aptly titled “Dubai’s Venture Capital Ecosystem,” this comprehensive study provides valuable insights into the dynamic investor landscape supporting the remarkable growth of startups and scale-ups in Dubai and the wider MENA region.
According to the report’s findings, an impressive total of 749 scale-ups across the MENA region (excluding Israel) raised over $19.5 billion in cumulative capital between 2012 and 2022. Remarkably, UAE scale-ups accounted for a substantial 65 percent of the total cumulative capital raised across the region.
Dubai currently boasts more than 40 percent of the MENA region’s scale-ups, with 306 scale-ups proudly calling the emirate their home. Furthermore, Dubai remains the home of over 90 percent of all scale-ups in the UAE, with a total of 338 scale-ups across the country.
The report also revealed that over the past decade, Dubai’s 306 scale-ups have impressively secured over $11.7 billion in funding, representing a remarkable 60 percent of the MENA region’s total cumulative fundraising.
Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, as well as Chairman of Dubai Chamber of Digital Economy, said, “The UAE’s advanced digital ecosystem has accelerated the development of the entrepreneurship sector and contributed to significant growth in its activity. The country’s proactive vision in developing legislation and initiatives in the digital field creates a favorable environment for startups and fast-growing companies, which has attracted unicorn companies and investors from around the world and consolidated the UAE’s position as a global hub for the digital economy.”
He added, “The results in the report reflect our long-term commitment to developing smart digital solutions and deploying these to build a new and future-facing model for the economic sector in the UAE, and Dubai in particular, and underline the emirate’s position as a global capital for the future economy.”
As Dubai aspires to establish itself as the ultimate global destination for digital entrepreneurs, the Dubai Chamber of Digital Economy has been entrusted with the critical task of attracting top-tier tech companies, startups, and scale-ups capable of supporting Dubai’s ambitious digital aspirations. The creation of this chamber was a strategic move to construct the world’s most exceptional digital infrastructure and transform Dubai into an international technology powerhouse.
Dubai has been making significant strides toward realising its ambitions, thanks to its visionary initiatives and investments in cutting-edge technology. From its unparalleled fiberoptic network and innovative cloud-based systems to its pioneering approaches to smart city development, Dubai has set an extraordinary standard for leveraging technology to enhance citizens’ lives and attract global businesses.
An exemplary recent achievement is the inauguration of the Moro Hub, the world’s largest solar-powered data center, in February 2023. This groundbreaking project is part of Dubai’s 10X initiative, a forward-thinking program launched by Sheikh Mohammed bin Rashid Al Maktoum in 2017. By spearheading disruptive and exponential change, government entities have propelled Dubai a decade ahead of other leading global cities.
Dubai Chamber of Digital Economy also noted that the growth of funding in the MENA region has exceeded $4 billion in both 2021 and 2022. Moreover, the number of mega-rounds of $300 million or more has been on the rise, with three witnessed in 2021 and six in 2022, including two scale-ups that successfully listed on stock exchanges.
