Innovative industries and startups in Dubai

The innovative industry and startups in Dubai demonstrate high dynamics, especially compared to other regions of the Middle East, Europe, and Asia. Real estate, finance, e-commerce, education – all these are attractive sectors for investment projects.

Dubai as a Startup Hub

Innovative technologies (blockchain, AI, neural networks) play a key role in transforming attractive industries for startups. Companies aim to create products and services that stand out in terms of quality and efficiency.

Dubai offers the most favorable conditions for the successful development of startups: access to investments, a favorable business environment, and high levels of government support.

Government programs and UAE incubators actively support new projects and provide the necessary resources to expand their capabilities. Additionally, Dubai is an international hub for business tourism and financial services, creating a conducive environment for attracting investors and clients.

However, despite all the opportunities, this type of business faces several risks in the country, including:

• High competition
• Target audience identification
• Demand for the offered product
• Reliability of partners

The UAE government is taking active measures to eliminate barriers to startups and create conditions conducive to their growth. The most investment-attractive sectors for new projects in Dubai include finance, food technology, real estate, tourism, transportation, information technology, and e-commerce.

List of Startups in 2023

The population of the UAE is only 10 million people. However, the number of startups registered in the country has exceeded 4,000.

In 2022, according to reports from the Digital Digest agency, innovative projects registered in the regions of the Middle East and North Africa were able to attract over 3 billion dollars.

Yellow Door Energy

Founded in 2015, the project has attracted over 400 million dollars by 2022. Its creators introduced new developments in the field of renewable energy, starting to build solar power plants and offering companies the purchase of solar energy as an alternative to traditional electricity. The project's investors include the International Finance Corporation (IFC) of the World Bank, the Japanese bank Mitsui, and the Arabian company Apicorp.

Ajar

A startup developed specifically for the real estate segment in Dubai, Ajar is a platform for collecting rent and managing real estate. The application reminds about payment deadlines, issues invoices, provides reports, and conducts analysis. Both landlords and tenants can use the development. The startup is headquartered in Dubai, with an expected annual revenue of 17 million dollars.

Kitopi

A platform for the restaurant industry with its own set of applications that optimize the operation of cloud kitchens in real-time. The cloud kitchen is solely focused on delivery and does not require costs for rent and maintenance of a dining area. The aggregator allows hiring staff (couriers and chefs), registering on marketplaces, finding suppliers, and registering with delivery services. From restaurant partners, recipes and trademarks are required. The profit is split in half. The startup operates with over 20 brands in 8 countries worldwide. The total amount of investments attracted is 400 million dollars.

Quiqup

A logistics startup, offering the fastest delivery in the UAE among other services. It works with leading marketplaces and well-known brands. The developed e-commerce platform allows controlling the entire process of product logistics, including its return. In 2022, it was able to attract over 47 million dollars in investments. The nearest plans include international expansion. The main office is located in the capital of the emirate, Dubai. The financing raised in 2022 was 47.5 million dollars.

Pure Harvest

An agricultural project aimed at producing high-quality agricultural products in the challenging climate conditions of the Middle Eastern region. The focus is on both the high quality and safety of products, as well as their localization. All farms are located in the UAE. Innovative technologies are used in the growing process, allowing to abandon chemical fertilizers and expand the range of products offered. The startup's agricultural products received the "Product of the Year" award in 2022 and was able to attract over 180 million dollars in the same period.

GymNation

A gym created using the latest developments and innovations, popular among both locals and tourists. Modern equipment, a well-selected team, and a whole range of specially designed fitness programs that allow achieving quick results.

A special application tracks progress in workouts, provides feedback to the team of trainers. Despite the moderate number of employees (115 people), the projected revenue is $38 million.

Promising Directions

One of the potentially profitable directions for investment in Dubai is artificial intelligence (AI). Thanks to active government support and the availability of high-speed Internet, local entrepreneurs have the opportunity to create innovative AI technologies in areas such as finance, healthcare, logistics, and e-commerce. AI technologies will help automate processes, increase the efficiency of company operations, and improve the quality of services for residents and guests of the emirate.

Another promising area for startups is blockchain. The percentage of blockchain usage in various sectors of the economy, such as finance, logistics, or government management, will only continue to grow. Thanks to the transparency and security of blockchain technology, it can significantly improve the efficiency of business processes and increase trust among market participants.

Startups are represented in Dubai in almost every industry – from the economy and logistics to agriculture and tourism. The growth of funding raised, including from international companies, attests to the prospects of such projects.

For over 12 years, The Level Consulting has been providing ideal conditions for launching business projects in Dubai and other emirates. The extensive experience of our experts and a comprehensive approach to problem-solving allow us to provide operational support at any stage of a company's development.