Abu Dhabi has been recognized as the fastest-growing emerging ecosystem in the Middle East and North Africa (MENA) region, boasting a remarkable 28% growth in ecosystem value. This accolade comes from the 2024 Global Startup Ecosystem Report (GSER) by Startup Genome and the Global Entrepreneurship Network, unveiled during London Tech Wee
The GSER report, underpinned by a vast dataset covering over 4.5 million companies across more than 300 entrepreneurial innovation ecosystems, highlights Abu Dhabi’s impressive achievements. From July 1, 2021, to December 31, 2023, Abu Dhabi’s ecosystem generated $4.2 billion in value, reflecting a 28% compound annual growth rate when compared to the period from July 1, 2019, to December 31, 2021.
Abu Dhabi’s startup ecosystem has made a significant leap, jumping 15 spots from the previous year and now ranking within the 61-70 group globally. This surge is a testament to the city’s robust and dynamic entrepreneurial landscape.
- Total Early-Stage Funding: Between July 1, 2021, and December 31, 2023, Abu Dhabi secured $284 million in early-stage funding.
- Total VC Funding: From 2019 to 2023, the city amassed $1.06 billion in venture capital funding.
- Performance Rankings: Abu Dhabi ranks #2 in the MENA region for ecosystem performance, which measures the size and success of the ecosystem based on the accumulated tech startup value from exits and funding.
- Funding Rankings: The city holds the #5 spot in the MENA region for funding, highlighting the vibrant early-stage funding scene and active investor participation.
- Talent and Experience Rankings: Abu Dhabi is ranked #5 in the MENA region for talent and experience, which considers long-term performance trends.
- Knowledge and Innovation Rankings: It is among the top 10 MENA ecosystems for knowledge, reflecting strong research and patent activity.
- Bang for Buck and Affordable Talent: The city is in the top 15 for both ‘Bang for Buck,’ which measures the runway tech startups gain from VC funding, and ‘Affordable Talent,’ which assesses the ability to hire tech talent.
Abu Dhabi’s startup ecosystem is particularly strong in sectors like FinTech, AgTech and New Food, and ClimateTech, which are noted for their talent density, support resources, and active startup communities. The city’s strategic location and the Golden Visa initiative are also cited as significant incentives for startups to establish themselves in Abu Dhabi.
The report underscores the pivotal roles of key ecosystem players such as 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 organizations contribute to a favorable operating and regulatory environment, offering unique incentives like 100% foreign ownership to attract foreign investment and startups.
Collaborations among these entities have facilitated the smooth relocation of startups worldwide to Abu Dhabi, providing access to capital and commercial opportunities. Notable examples include U.S.-based digital asset security firm Andalusia Labs and South Korean blockchain company Neoply, which have moved their global headquarters to ADGM.
Hub71: A Thriving Community
Hub71, Abu Dhabi’s global technology ecosystem, is home to over 315 startups that have collectively raised $1.5 billion. This vibrant community continues to drive the city’s reputation as a hub for innovation and entrepreneurial success.
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