Is United Arab Emirates a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

United Arab Emirates has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what United Arab Emirates gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in United Arab Emirates

Funding is one of the most critical ingredients in building a successful startup – and United Arab Emirates offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

The early-stage funding scene in the UAE is active, supported by various players despite facing some headwinds. Notable VC firms like BECO Capital, Wamda Capital, and Shorooq Partners are active investors, often focusing on tech and fintech sectors. Government initiatives also play a significant role, with programs like the Mohammed Bin Rashid Innovation Fund and Abu Dhabi Investment Office (ADIO) offering grants and support to local founders. Angel networks such as Dubai Angel Investors also contribute to the seed funding landscape. However, challenges persist, including high competition and a notable decline in overall funding in 2023 and H1 2024 compared to previous years, although the volume of early-stage deals has shown some resilience. While seed-stage funding saw a decrease in H1 2024, early-stage funding (Series A, B) increased. There's also a broader funding gap for growth-stage companies in the MENA region, which can impact the later trajectory of early-stage ventures.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

United Arab Emirates has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

The UAE has a thriving startup and innovation culture, actively fostered by the government. There is a strong presence of coworking spaces and numerous tech events are held throughout the year. Entrepreneurial activity is high, with the UAE ranking first globally in the Global Entrepreneurship Monitor report for 2023-2024. The ecosystem supports startups at various stages, with plentiful early-stage funding available from angel investors and VCs. While standardized accelerator programs exist, there is also a focus on providing personalized support and mentorship to early-stage founders to help them navigate challenges and scale.

For many entrepreneurs, the energy and resources available in United Arab Emirates can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like United Arab Emirates, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in United Arab Emirates is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

The UAE has a growing talent pool for startups, supported by numerous educational institutions. Universities are increasingly offering specialized entrepreneurship programs and partnering with incubators and accelerators to provide resources and mentorship. While there's a high demand for specific tech skills like AI and software development, the UAE is attracting global talent through favorable visa policies and initiatives. Local talent contributes significantly, with government initiatives promoting Emirati participation in the private sector and fostering homegrown entrepreneurship through training and support programs. Industry-specific expertise is developing in key sectors like technology, finance, and fintech.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in United Arab Emirates can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

United Arab Emirates boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

The UAE offers a robust ecosystem for startups, featuring world-class infrastructure, including advanced digital connectivity and free zones providing tax incentives and 100% foreign ownership. Support systems include numerous accelerators, incubators, and co-working spaces offering mentorship, resources, and networking. Government initiatives are crucial, with programs like the National Entrepreneurship Agenda, Golden Visas for entrepreneurs, and funding schemes such as the Dubai Future District Fund and initiatives by Dubai SME and Hub71. These resources and policies help businesses thrive by simplifying setup, providing financial aid, and fostering innovation.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in United Arab Emirates. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can United Arab Emirates Be Considered the Best Place to Launch a Startup?

There’s no doubt that United Arab Emirates provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in the UAE face several challenges. Competition is high due to the dynamic market attracting global ventures. The cost of living, particularly high housing costs in major cities like Dubai and Abu Dhabi, can make attracting and retaining skilled talent difficult due to competitive salaries required. Regulatory complexities also pose hurdles, with entrepreneurs needing to navigate diverse legal requirements across different Emirates and free zones for licensing, compliance, and ownership structures. Initial setup costs, including licenses and office space, can also be significant.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in United Arab Emirates or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while United Arab Emirates offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash