The Dubai Chamber of Digital Economy publishes a report on Dubai’s venture capital ecosystem

  • Al Olama: The UAE’s advanced digital ecosystem has accelerated the growth of the entrepreneurship sector and contributed to significant growth in its activity.
  • Al Olama: The results of the report reflect our long-term commitment to develop smart digital solutions and use these to create a new and future-facing model for the economic sector.
  • Al Olama: The country’s proactive approach to developing legislation and initiatives in the digital sector has attracted unicorn companies and investors from around the world and cemented the UAE’s position as a global hub for the digital economy.
  • Financial growth in the MENA region is projected to exceed US$4 billion in 2021 and 2022.
  • Funding rounds increased by more than 100% between 2021 and 2022, ranging from US$100 million to US$1 billion.
  • A 26% increase in the number of scale-ups in Dubai between 2021 and 2022, from 242 to 306.
  • More than 30% of funding rounds are attributed to Dubai-headquartered start-ups.
  • 749 scale-ups in the MENA region, raising US$19.5 billion over the past decade (2012-2022).
  • 40% of MENA’s scale-ups are in Dubai.
  • By 2022, Dubai-based startups will raise USD 2 billion.
  • Dubai’s 306 benchmarks have raised more than US$11.7 billion over the past decade, accounting for 60% of MENA’s total fundraising.
  • Dubai accounts for over 90% of all scale-ups in the UAE.

Dubai, United Arab Emirates – The Dubai Chamber of Digital Economy, one of the three chambers under Dubai Chambers, has released its third report on Dubai’s digital economy. The „Dubai’s Venture Capital Ecosystem” report provides an overview of the investor landscape supporting the start-ups and scale-ups that are transforming Dubai and the MENA region.

Commenting on the release of the report, HE Omar Sultan Al Olama, Associate Minister for Artificial Intelligence, Digital Economy and Remote Work Applications and Chairman of the Dubai Chamber of Digital Economy said: “The UAE’s advanced digital ecosystem has accelerated growth. Entrepreneurship has contributed to significant growth in the sector and its activities. The country’s proactive vision of developing legislation and initiatives in the digital sector creates a favorable environment for startups and fast-growing companies, which has attracted unicorn companies and investors from around the world and cemented the UAE’s position as a global hub of the digital economy. „

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He added: “The results of the report reflect our long-standing commitment to create smart digital solutions and create a new and future-facing model for the economic sector in the UAE and Dubai in particular, underlining the Emirates. Positioning as Global Capital for the Future Economy.”

With Dubai setting its sights on becoming the global destination of choice for digital entrepreneurs, the Dubai Chamber of Digital Economy is working to attract leading technology companies, start-ups and scale-ups to support Dubai’s digital ambitions. The chamber was created to build the world’s best digital infrastructure and transform Dubai into an international technology hub.

Through a series of visionary initiatives and investments in cutting-edge technology, Dubai is well on its way to achieving its ambitions. From its world-class fiber optic network and cloud-based systems to its innovative approaches to smart city development, Dubai has set the standard for how cities can leverage technology to improve the lives of its citizens and attract global businesses.

A recent example is the opening of the world’s largest solar-powered data center, the Morrow Hub, in February 2023. The 100-MW facility is part of the Dubai 10X initiative, an innovative project launched in 2017 by HH Sheikh Mohammed bin Rashid Al Maktoum. The initiative will disrupt government institutions, create exponential change, and put Dubai 10 years ahead of leading global cities.

According to the report, a total of 749 scale-ups in the MENA region (excluding Israel) have raised a total of over US$19.5 billion over the past decade (2012-2022), with UAE scaleups accounting for 65% of the total. Capital accumulated throughout the region.

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Today, Dubai is home to more than 40% of scale-ups in the MENA region, with 306 scale-ups calling the emirate home. Dubai still accounts for more than 90% of the total of 338 scale-ups.

Dubai’s 306 scale-ups have raised US$11.7 billion in funding over the past decade, representing 60% of the MENA region’s total funding. In addition, by 2022, Dubai-based startups have doubled their previous year’s results and raised more than USD 2 billion in funding.

In addition, the growth of financing in the MENA region has exceeded US$4 billion in 2021 and 2022 and the number of US$300 million or more mega-rounds has seen an increasing trend to three in 2021 and six in 2022. Benchmarks for listing on stock exchanges.

In 2022, there was a significant shift in the number of funding rounds where benchmarks were funded, and the trend towards larger check sizes and funding brackets gained momentum. Funding rounds increased by more than 100% between 2021 and 2022, ranging from US$100 million to US$1 billion. Other financial limits have also increased from 20% to 87%.

Considering the source of capital raising, venture capital and corporate rounds accounted for more than three-quarters of the capital, while IPOs and ICOs accounted for an almost equal share.

The number of scaleups in Dubai between 2021 and 2022 has increased significantly. In absolute numbers, Dubai has grown by 64 scale-ups between 2021 and 2022, from 242 to 306 scale-ups.

Venture funding in Dubai has seen tremendous growth over the past decade. From a time of only seed stage and earlier rounds, Dubai has grown to become the only city in the MENA region for startups to raise funding in Series E and Series F rounds.

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The report, produced in collaboration with Entrepreneur Middle East, reveals that more than 30% of funding rounds are attributed to Dubai-headquartered startups, while 87% of all funding rounds for UAE companies are to companies headquartered in the emirate. .

By 2031, the national digital economy is expected to be conservatively valued at over US$140 billion (up from US$38 billion today). Together with the Dubai Chamber of Digital Economy, collaboration between stakeholders and ecosystem players will ensure that Dubai becomes the next digital economy capital of the world.

Click here To download the report.

About:

One of three chambers operating under the umbrella of Dubai Chambers, the Dubai Chamber of Digital Economy aims to strengthen Dubai’s position as a global leader in the digital economy and create a stimulating environment that attracts and promotes growth and development of specialist talent, leading companies and new investments. Digital companies. The Chamber was established by a decree issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai.

www.dubaichamberdigital.com/en/home

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For more information, contact:
Mohammed Mousehem
PR & Corporate Communications
Email: [email protected]

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