The UAE leads the GCC as the top startup hub, with over 5,600 startups registered by Q2 this year, according to recent data from Statista. It also dominates the fintech sector in the region, hosting more than 550 companies in this industry.

The UAE has established itself as a top startup ecosystem in the region, thanks to its attractive and cohesive investment landscape, business-friendly policies, and innovation-focused regulations, Economy Middle East reports.

The nation ranks highly on various global startup indicators, a result of its ongoing efforts to foster a supportive environment for investment and innovation, which have also boosted the UAE's position in global competitiveness rankings.

A recent report from the global consulting and research firm Startup Genome highlighted that the Emirates are steadily climbing international rankings, positioning themselves as the region's fastest-growing startup ecosystem.

Abu Dhabi, Dubai, and Sharjah are at the forefront of this growth, driving continuous and sustainable development by cultivating a proactive and incentivising environment across key sectors. 

The report further highlighted that Abu Dhabi retained its position as the fastest-growing startup ecosystem in the Middle East and North Africa from the second half of 2021 to the end of 2023, with its startup ecosystem reaching a value of $4.2 billion during this period.

In addition, early-stage startup funding totalled $224 million, while venture capital funding surpassed $1 billion, fuelled by the increasing activities of startups within Abu Dhabi’s global tech hub, Hub71.

“Hub71 is witnessing increased interest from tech startups that are contributing to tackling global challenges, creating significant economic value, and generating new job opportunities in Abu Dhabi,” said CEO of Hub71 Ahmad Ali Alwan.

Furthermore, Dubai has reinforced its position as a leader in fostering ecosystems that promote startup growth, achieving top rankings in both global and regional startup ecosystem valuations. 

Indeed, Dubai ranked first in the Gulf and second in the region, with its startup ecosystem valued at over $23 billion by the end of 2023, according to Startup Genome.

Moreover, Sharjah's startup ecosystem reached a value of $424 million by the end of last year, with early-stage funding amounting to $39 million.