According to the 2024 Global Startup Ecosystem Report (GSER), Abu Dhabi has been ranked as the fastest-growing emerging ecosystem in the MENA region. It has marked a 28 per cent growth in terms of ecosystem value. The GSER report by Startup Genome and the Global Entrepreneurship Network was launched at London Tech Week.
The report states Abu Dhabi continues to be the fastest-growing emerging ecosystem in the region and has created over $4.2 billion in ecosystem value between July 2021 and December 2023. This marks a 28 per cent compounded annual growth compared to July 2019 to December 2021. The report added ecosystem value is a measure of economic impact and is calculated as the value of exits and startup valuations.
Ahmad Ali Alwan, CEO of Hub71, said: “Abu Dhabi’s rise as a leading startup ecosystem in the region is a testament to the opportunities it offers entrepreneurs worldwide. Its favourable environment creates funding and commercial prospects and establishes the foundation for startups to scale. This is exemplified by Hub71, which has seen its startup community grow over the past five years as more startups have identified Abu Dhabi as a launchpad for their global expansion. As the Startup Genome report shows, Hub71 is fulfilling the vision of our leadership to maximise the potential of disruptive ventures that are transforming society with impact.”
GSER added that Abu Dhabi’s ranking jumped 15 spots compared to the previous year, within the 61-70 group. The total early-stage funding between July 2021 and December is $284 million, and the total VC Funding for 2019 – 2023 is $1.06 billion.
The GSER, powered by the world’s most quality-controlled dataset on startup ecosystems, analyzes data from over 4.5 million companies across 300+ entrepreneurial innovation ecosystems. It provides compelling new insights and deep knowledge about startup trends worldwide and ranks the Top 40 global ecosystems, emerging ecosystems, and an expanded regional ranking.
The report highlights Abu Dhabi’s key ecosystem players including Abu Dhabi Global Market (ADGM), Mubadala Investment Company, ADQ, the Abu Dhabi Investment Office (ADIO), startAD, and Abu Dhabi Department of Economic Development (ADDED) who are contributing to a favorable operating and regulatory environment and offering unique incentives such as 100% foreign ownership to attract foreign investment and startups into the economy. Leveraging collaborations among these key ecosystem players, Abu Dhabi is facilitating the soft-landing of startups from around the world, enabling access to capital and commercial opportunities. Numerous companies are relocating their global headquarters to ADGM, among them U.S.-based digital asset security firm Andalusia Labs and South Korean blockchain company Neoply. Hub71 hosts a community of over 315 startups that have collectively raised $1.5 billion.
“Thanks to the excellent work of Hub71, Abu Dhabi is one of the rare places where everyone comes together to create a world-class startup ecosystem at an incredible pace,” shares Marc Penzel, Founder & President of Startup Genome. “Whether it’s digital assets, CleanTech, or other fast-growing opportunities, Abu Dhabi should be on the radar of any entrepreneur with outsized global ambitions.”
The GSER is driven by a consortium of representatives from 40+ countries and looks at the current state of startup activity and related investment, providing insights and guidance to public and private leaders on how to foster thriving startup communities — the #1 engine of job creation and economic growth. Contributions from expert thought leaders and local key players further enrich the report’s extensive, evidence-based findings, which are the product of over a decade of Startup Genome’s independent research and policy work.
