Dubai start-ups jointly raised over $2 billion in 2022, twice the financing secured the year before, as the emirate focuses on becoming digital entrepreneurs' favoured destination.

New findings by the Dubai Chamber of Digital Economy have revealed over 30% of funding rounds in the Middle East and North Africa region are allocated to start-ups based in Dubai.

Indeed, 87% of all funding rounds for firms based in the UAE are for start-ups within Dubai.

"The country's proactive vision in developing legislation and initiatives in the digital field creates a favourable environment for start-ups 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," said the Minister of State for Digital Economy, AI and Remote Working System and chairman of Dubai Chamber of Digital Economy, Omar Al Olama.

The UAE unveiled its Digital Economy Strategy in 2022, with the aim of boosting the contribution of the sector to GDP by 20% over the coming decade, a rise from 9.7% last year, The National reports.

Furthermore, the new initiative also works towards Dubai's objective of attracting 300 digital start-ups to the emirate by next year to help bolster its non-oil GDP.

In Q1 this year, the Dubai Chamber of Digital Economy attracted 30 digital start-ups, it was announced last week.

In addition, over 40% of all scale-ups in the Mena region and 90% of scale-ups in the UAE are based in Dubai, the report went on to say. Scale-ups are start-ups that have raised capital of $1 million or more.

Dubai's 306 scale-ups have jointly raised over $11.7 billion in funding between 2010 and 2022, representing 60% of the total raised in the Mena region, the study added.

The report shows Dubai's "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," Mr Al Olama continued.