Abu Dhabi Startup Ecosystem Value Increased by 28%

Abu Dhabi has been ranked as the fastest-growing emerging ecosystem in the Middle East and North Africa (MENA), showcasing a 28% growth in ecosystem value according to the 2024 Global Startup Ecosystem Report (GSER) by Startup Genome and the Global Entrepreneurship Network. This report was launched at London Tech Week. The GSER is powered by the most quality-controlled dataset on startup ecosystems, analysing data from over 4.5 million companies across more than 300 entrepreneurial innovation ecosystems. It provides new insights and deep knowledge about global startup trends, ranking the top 40 global ecosystems, and emerging ecosystems, and offering expanded regional rankings.

Abu Dhabi's Performance Metrics

The report highlights several key findings regarding Abu Dhabi’s startup ecosystem:

- Rapid Growth: Abu Dhabi continues to be the fastest-growing emerging ecosystem in the MENA region.

- Economic Impact: The ecosystem generated $4.2 billion in value from July 1, 2021, to December 31, 2023, representing a 28% compound annual growth compared to the period from July 1, 2019, to December 31, 2021.

- Ranking Improvement: Abu Dhabi’s ranking jumped 15 spots, landing in the 61-70 group globally.

- Funding: Total early-stage funding between July 1, 2021, and December 31, 2023, was $284 million, with total VC funding from 2019 to 2023 reaching $1.06 billion.

- Performance and Funding: Ranked #2 in MENA for performance and #5 for funding.

- Talent and Experience: Ranked #5 in MENA for talent and experience.

- Knowledge and Innovation: Recognized as a top 10 MENA ecosystem for knowledge and top 15 for value and affordable talent.

- Sector Highlights: FinTech, AgTech, New Food, and ClimateTech are noted for their dense talent, support resources, and startup activity.

- Incentives: The Golden Visa and strategic location are highlighted as significant advantages for startups.

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 through Hub71 which has seen its startup community grow over the past five years as more startups identify Abu Dhabi as a launchpad for their global expansion. As the Startup Genome report shows, Hub71 is fulfilling the vision of our leadership to maximize the potential of disruptive ventures that are transforming society with impact.”

Key Ecosystem Players

Abu Dhabi’s ecosystem is supported by key players including Abu Dhabi Global Market (ADGM), Mubadala Investment Company, ADQ, the Abu Dhabi Investment Office (ADIO), startAD, and the Abu Dhabi Department of Economic Development (ADDED). These entities contribute to a favourable operating and regulatory environment and offer unique incentives like 100% foreign ownership to attract foreign investments and startups.

“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.”

Strategic Collaborations & Global Insights

Collaborations among these key players facilitate the smooth integration of startups from around the world, providing access to capital and commercial opportunities. Notably, several companies are relocating their global headquarters to ADGM, including U.S.-based digital asset security firm Andalusia Labs and South Korean blockchain company Neoply. Hub71, Abu Dhabi's global technology ecosystem, hosts a community of over 315 startups that have collectively raised $1.5 billion.

The GSER is driven by a consortium of representatives from over 40 countries, examining the current state of startup activity and investment. It provides insights and guidance to public and private leaders on fostering thriving startup communities, considered the top engine for job creation and economic growth. Contributions from expert thought leaders and local key players further enrich the report’s findings, which stem from over a decade of independent research and policy work by Startup Genome.