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Abu Dhabi climbs startup ecosystem rankings despite global downturn

Abu Dhabi climbs startup ecosystem rankings despite global downturn

Al Etihad4 days ago

17 June 2025 00:15
KHALED AL KHAWALDEH (ABU DHABI) Abu Dhabi's startup ecosystem has firmly established itself as one of the most dynamic in the Middle East and North Africa (MENA), ranking among the top five in the region in the 2025 Global Startup Ecosystem Report (GSER).The report - unveiled by Startup Genome at the recently concluded VivaTech in Paris -recognised the emirate's impressive rise in the rankings, despite a challenging global environment for startups. The GSER 2025 draws on data from more than five million companies across more than 350 ecosystems globally. This year's report highlights how Abu Dhabi soared into the top emerging global ecosystems, moving into the #51-60 tier, a significant leap from its previous #61-70 position. This advancement comes in a year when the global startup ecosystem value contracted by 14%, underscoring the emirate's resilience and strategic vision, the report said."Abu Dhabi's rise in the global rankings is a testament to the exceptional pace and cohesion of its innovation ecosystem, with Hub71 at the heart of this transformation," Samantha Evans, Managing Director MENA at Startup Genome, said in the report. "Amid a global downturn, Abu Dhabi's long-term vision and collaborative strength are driving sustained growth. We expect this momentum to accelerate, with Abu Dhabi poised to outperform many (of its) global peers in the coming years."According to the report, the emirate generated $4.4 billion in ecosystem value between July 2022 and December 2024, reflecting an annual growth rate of 6%. Abu Dhabi ranked among the top five MENA ecosystems in multiple key areas, including Performance (3rd), Knowledge (4th), Funding (5th), and the prominent Bang for Buck category, which measures the efficiency of capital deployment and returns on investment.The emirate ranked particularly high in the market reach of its ecosystem and funding availability; however, it showed room for improvement in knowledge and access to talent and expertise.Remarkable Support for StartupsAccording to VivaTech, the success of Abu Dhabi's startup ecosystem is driven by a combination of forward-looking government policies, targeted funding initiatives, and a robust support infrastructure. "Abu Dhabi's rise in global rankings reflects the strength of our startup community and the impact of Hub71's ecosystem-enabling initiatives," Hub71 CEO Ahmad Ali Alwan said in the report. "Through strategic partnerships, access to capital, and a supportive regulatory environment, we are helping startups scale internationally and contribute to Abu Dhabi's economic and technological ambitions."Among the key sectors that are fuelling this growth are FinTech, ClimateTech, and Digital Assets, all underpinned by innovative regulatory frameworks and purpose-built infrastructure. Notable enablers such as the Abu Dhabi Global Market's (ADGM) expanded licensing frameworks and substantial venture funding have attracted both local and international entrepreneurs, particularly in sustainability and blockchain technology.
Moreover, initiatives like the Khalifa Fund's MZN HUB have helped streamline regulatory processes and offer startups seamless access to global innovation networks, strengthening Abu Dhabi's influence on the international entrepreneurial stage.

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