By Seed Group
Dubai’s rich investment market provides innumerable prospects for multinational companies operating in a variety of innovative industries. In this article, we explore the emirate’s lucrative business field, which is primarily driven by solid government initiatives (i.e., incubator and accelerator programs) and strategic collaborations with local corporate institutions like Seed Group.
According to the 2024 World Competitiveness Report by the International Institute for Management Development (IMD), the UAE ranks seventh (7th) globally in economic competitiveness. In parallel, in the 2024 Global Entrepreneurship Monitor report, the country was recognised as the top international location for initiating and running new businesses with a score of 7.7 — the highest ever documented in the history of the report. In aggregate, these economic reports assess various indicators, including, but not limited to, employment, access to financing, ease of market entry, research and development, flexible systems and legislation, and government entrepreneurship programs.
The country’s economic achievements may also be a result, albeit only a factor, of Dubai’s strong foreign direct investment (FDI) performance in 2023. Based on data from fDi Markets, a cross-border FDI monitoring platform of the Financial Times, Dubai achieved the highest position by drawing in 1,070 greenfield FDI projects. This led to a total FDI capital of Dh39.26 billion and the formation of 60 greenfield companies with their main offices established in the emirate.
All this shows how Dubai, and the UAE as a whole, has grown to become a metaphorical guidepost for international companies seeking a strategic stronghold in the MENA region. This article particularly digs deeper into Dubai’s lucrative investment field through the insights of Seed Group, a Dubai-based corporate institution under the company of The Private Office of Sheikh Saeed bin Ahmed Al Maktoum. This comprehensive piece sheds light on the various government-led programs, strategic alliances, and funding pathways available to multinational companies.
Funding Programs and Incubators in Dubai
Dubai’s corporate field is shaped by factors such as global investor confidence and accelerator programs designed to support innovative businesses of all scales.
More recent government-led initiatives include the ‘Dubai Universal Blueprint for Artificial Intelligence (DUB.AI)’ and the ‘Dubai Future Solutions – Prototypes for Humanity’. The former aims to increase AI adoption in all sectors while the latter develops an avenue that attracts innovative concepts and projects from global talents to deliver solutions that benefit humanity. In addition, the Dubai International Growth Initiative allocates Dh500 million to accelerate the expansion of small and medium-sized enterprises (SMEs) into global markets.
Simultaneously, government-supported platforms such as the Dubai Future Accelerator (DFA), Dubai Angel Investors, and Bedayat support early-stage business ventures in various industries like fintech (financial technology), adtech (advertising technology), and healthtech (health technology). These initiatives provide financial support, mentorship, and networking opportunities to foster a conducive environment for innovation and growth.
It’s also noteworthy that over 900 SMEs within the in5 platform — a start-up incubator within TECOM Group’s portfolio — have seen a 25% (accounts for Dh3 billion) increase in global investor funding. This is indicative of the growing appeal of homegrown, high-potential enterprises. Moreover, there are a variety of collaborations launched by the government to tap into the strategic support of leading local companies, such as Seed Group, to advance the performance of Dubai’s key economic sectors.
The Thriving Venture Capital Market
Building on the growing investment opportunities, the Regional Outlook For Banking and Capital Markets released by the Dubai International Financial Centre (DIFC) showed that the UAE has 109,900 resident high-net-worth individuals (HNWIs), including 298 centi-millionaires and 20 billionaires. These HNWIs are anticipated to participate in the IPO surge and invest in high-potential enterprises. The report also suggests that the IPO boom is causing a rise in the number of asset managers (370), which is stimulating the development of Dubai’s banking and capital markets.
In line with this, His Excellency Essa Kazim, the Governor of the Dubai International Financial Centre (DIFC), announced during the 2024 Dubai FinTech Summit that the digital asset sector has received $3.3 billion in global venture capital funding. He also highlighted a 31% increase in the number of fintech and innovation businesses registered in DIFC.
In the field of advertising, many public and private collaborative projects, acquisitions, and specialised programs, transpired to improve the overall use of AI-based advertising. Likewise, the UAE’s overall healthtech industry thrives due to the progress in telemedicine, wearable technology, and AI. Prominent partnerships with global companies such as Honeywell’s in-home diagnostic technology and Medativ’s 3D printing for surgical training demonstrate the cooperation between the Dubai Health Authority and private firms. The DFA further encourages this collaborative environment by enabling private companies to partner with government entities to develop, fund, and invest in its state-of-the-art healthtech solutions.
The Bottom Line
Indeed, Dubai presents ample investment opportunities for global firms. With a supportive government, a flourishing venture capital environment, and influential allies through private firms, the emirate is slated to maintain its appeal in attracting and fostering innovative enterprises.
About the Author
For more than 20 years, Seed Group has developed strategic partnerships with multinational businesses across innovative industries to facilitate their sustainable expansion into the MENA region. These businesses have advanced their market presence through invaluable resources and an extensive network of regional contacts forged by Seed Group.
