Latest news with #innovationhub
Khaleej Times
13-07-2025
- Business
- Khaleej Times
UAE surpasses Japan, Sweden in tech funding as late-stage investments fuel surge
The UAE has outpaced mature technology ecosystems like Japan and Sweden in total tech funding during the first half of 2025, underscoring its rising stature as a global innovation hub. A new report from Tracxn reveals that UAE tech startups raised $1 billion in H1 2025, buoyed by a strong rebound in late-stage investments and robust activity across key sectors including enterprise applications, fintech, and retail. While the overall funding remained below H1 2024's figure of $1.8 billion, the 133 per cent increase over the $438 million raised in H2 2024 highlights a strong half-year recovery, positioning the UAE as one of the most active tech ecosystems in the Mena region while fuelling its ambition to become the Silicon Valley of the Middle East. Dubai-based firms dominated the funding landscape, accounting for 93 per cent of total capital raised, with Abu Dhabi trailing as a distant second. Notably, two companies — Vista Global and Tabby — secured funding rounds exceeding $100 million. Vista Global attracted $600 million in a private equity round, while Tabby secured $160 million in a Series E round. These mega-deals alone accounted for over 75 per cent of the total capital raised, reflecting continued investor confidence in high-growth UAE-based startups. Despite the headline growth, the report also pointed to areas of concern, particularly in early-stage and seed-stage investment activity. Seed-stage funding plunged 74 per cent to $32.7 million compared to $125 million in H2 2024 and fell 71 per cent compared to $111 million in H1 2024. Early-stage funding reached $167 million, down 13 per cent from H2 2024 but showing a slight four per cent uptick from H1 2024. The real momentum, however, came from late-stage deals, which surged to $817 million — an increase of 583 per cent over H2 2024. Sectoral performance varied widely. Enterprise Applications led with $728 million in total funding, a 543 per cent rise over H2 2024, though still down 56 per cent from H1 2024. FinTech saw an impressive 47 per cent jump to $286 million, while Retail tech funding increased 20 per cent to $172 million. Compared to the same period in 2024, FinTech and Retail recorded 276 per cent and 275 per cent growth respectively, reflecting growing investor appetite in consumer and financial services innovation. However, the first half of 2025 did not witness the creation of any new unicorns, continuing a trend seen in both halves of 2024. This absence highlights the capital's current focus on scaling existing ventures rather than propelling early-stage startups to billion-dollar valuations. In terms of exits, only one UAE tech company — Micropolis — went public during the period. Mergers and acquisitions continued at a steady pace with nine deals recorded in H1 2025, slightly lower than the 10 deals each in H2 and H1 2024. Notable transactions included Hokoworld's acquisition of Everdome, Saronic's takeover of Gulf Craft, and Dubizzle Group's acquisition of Property Monitor. The report also identified the leading investors across different funding stages. 500 Global, Wamda Capital, and Middle East Venture Partners emerged as the most active overall investors. Oraseya Capital, Plus VC, and Endeavor dominated the seed stage, while e&, Flourish, and MoreThan Capital Advisors were prominent in early-stage rounds. At the late-stage level, Saudi Arabia-based STV stood out, adding one UAE company to its portfolio. Industry analysts note that the surge in late-stage funding reflects a maturing ecosystem where investors are increasingly drawn to proven business models and scalable platforms. The growth also aligns with the UAE government's strategic push to foster a knowledge-based economy, backed by digital transformation initiatives and supportive regulatory frameworks. While seed-stage contraction signals caution among early investors, the UAE's strong late-stage activity and sectoral resilience suggest that the ecosystem remains well positioned for sustained growth. As Dubai continues to attract capital, talent, and global partnerships, the emirate is cementing its status as a leading tech hub not just in the region but on the world stage. The report noted that the remainder of 2025 will be critical in determining whether this momentum translates into new unicorns, deeper early-stage investment, and a broader diversification of capital across emerging sectors such as AI, clean tech, and mobility.
South China Morning Post
11-07-2025
- Business
- South China Morning Post
HKU, officials push back against Hongkongers' development site proposal
The University of Hong Kong (HKU) and authorities have pushed back against Pok Fu Lam residents' suggestion to build an innovation hub at an alternative site, saying it would take up more green belt area and overlap partly with a planned mortuary. HKU on Friday introduced a revised proposal for building its global innovation centre mainly on a residential plot, instead of a green belt area in Pok Fu Lam as originally intended, to the Town Planning Board. But residents in the area have hit out at the university for dismissing their suggestion to build the centre at a site on Mount Davis, saying no proper consultation was conducted. Permanent Secretary for Development Doris Ho Pui-ling, who is also the board's chairwoman, said the 8.6-hectare (21.6-acre) Mount Davis site rested on a green belt area, while some parts were not suitable for development. 'Everyone is trying very hard to avoid the green belt area in Pok Fu Lam as much as possible. This site [Mount Davis] seems to be going slightly against what we have been doing,' she said. Ho said the site covered areas reserved for the relocation of Victoria Public Mortuary, which has secured construction funding from the legislature.
South China Morning Post
08-07-2025
- Business
- South China Morning Post
University of Hong Kong calls Pok Fu Lam site best option for its innovation hub
The University of Hong Kong (HKU) has said that Pok Fu Lam is the best location for building its innovation hub compared with alternatives such as the Northern Metropolis, arguing the site could yield the fastest outcomes and see the first section open its doors as early as 2032. Advertisement The university's stance was shared in a report submitted on Tuesday to the Town Planning Board about a revised development plan for HKU's global innovation centre. An initial proposal had suggested that the centre be built on a government-owned green belt along Pok Fu Lam Road, but the move faced strong opposition from residents last year due to concerns about traffic, the environmental impact and a lack of consultation. The plan was later revised to preserve more than 75 per cent of the green belt, with most of the innovation hub to be built on a nearby residential plot, while maintaining a distance of more than 100 metres (328 feet) from Upper Baguio Villa. The revised plan involves a site area of 40,000 square metres and a gross floor area of 190,000 square metres, with both representing a 15 per cent reduction from the previous proposal. Advertisement
Arab News
21-06-2025
- Business
- Arab News
Why tech startups should choose Riyadh as their MENA launchpad
RIYADH: Riyadh is becoming a leading destination for tech startups in the Middle East, fueled by Saudi Arabia's Vision 2030 reforms, an advanced infrastructure, and robust government-backed incentives. The Saudi information and communication technology market is projected to reach $54.90 billion in 2025 and $82.51 billion by 2030 at a compound annual growth rate of 8.49 percent, according to an analysis by Mordor Intelligence. This growth highlights the Kingdom's increasing prominence as a regional innovation hub. At the heart of this transformation is Saudi Arabia's Vision 2030 economic diversification plan, which has placed technology at the forefront of its strategy. Major initiatives, such as NEOM, a $500-billion smart city powered by artificial intelligence and renewable energy, and Riyadh Tech Valley, a dedicated hub for AI, the Internet of Things, and robotics startups, are driving this momentum. Government programs such as the Saudi Unicorns Program and Tech Growth Financing provide critical support for scaling businesses, further cementing Riyadh's appeal. Emmanuel Durou, technology, media and telecommunications leader at Deloitte Middle East, highlighted three key operational factors behind Riyadh's startup success. 'First, Saudi Arabia's advanced digital infrastructure has significantly accelerated startup growth,' he told Arab News in an interview. The 2018 Bankruptcy Law emphasizes debt restructuring over liquidation, providing cash-strapped startups a mechanism to negotiate with creditors early before default. Jasem Al-Anizy, partner in corporate finance at Addleshaw Goddard KSA Government-led digital transformation initiatives have created a robust technological backbone, with 14 percent of Saudi broadband users enjoying speeds over 1G bits per second — far surpassing the 4 percent seen in markets like the UK. 'This infrastructure supports rapid innovation and scaling up,' he added. The second factor, according to Durou, is the Kingdom's strategic focus on developing local talent pipelines. 'As many as 86 percent of Saudi universities now provide undergraduate programs in AI, 56 percent offer master's degrees, and doctoral opportunities stand at 9 percent,' he noted. The Deloitte leader emphasized that institutions like King Abdullah University of Science and Technology play a pivotal role in supplying startups with skilled, technology-ready talent. Lastly, Durou pointed to the Kingdom's supportive business environment, which includes government incentives, substantial funding mechanisms like venture capital and private equity, and vibrant incubator ecosystems such as Garage 46 and Impact 43. He also shed light on the Kingdom's high consumer adoption rates of advanced technologies, particularly Gen AI. Deloitte's recent survey outlined Saudi Arabia's high awareness of the technology at 76 percent, with usage frequencies of 20 percent daily and 32 percent weekly — significantly higher than the UK, he added. When comparing Riyadh's startup scaling environment to Dubai's, Durou observed distinct strengths in each. 'In Riyadh, government-driven initiatives such as Saudi Vision 2030 have significantly streamlined regulatory processes, enabling startups to reduce their time-to-market,' he said, adding that 'extensive support from local incubators, accelerators, and dedicated funding programs serve to further accelerate product development and launch timelines.' Durou noted that customer acquisition costs in Riyadh are comparatively lower, driven by the ongoing surge in digital adoption among consumers and supported by targeted government-backed marketing initiatives. The fintech sector, in particular, benefits from robust governmental support, which helps meet rising local demand. Meanwhile, e-commerce growth is further propelled by high Internet penetration and shifts in consumer behavior. 'Dubai offers rapid market entry facilitated by the globally recognized Dubai International Financial Centre and a mature, efficient regulatory environment. Although high market competition can drive up customer acquisition costs in Dubai, it's balanced by an expansive and diverse customer base,' he explained. Durou highlighted that the DIFC ecosystem offers fintech startups access to government incentives, which greatly enhance their growth prospects. He also emphasized that Dubai's strategic geographic position as a global trade hub, along with its advanced logistics and warehousing capabilities, significantly accelerates the expansion of e-commerce. Jasem Al-Anizy, partner in corporate finance at Addleshaw Goddard KSA, shed light on the legal structures that are proving effective in the Kingdom. 'Saudi startups have historically preferred an offshore ring-fencing of intellectual property assets by holding and protecting intellectual property interests in a standalone sister company based in an offshore jurisdiction,' he explained to Arab News. 'This has helped startups in scaling globally and simplifies exit strategies,' Al-Anizy said. Government-driven initiatives have significantly streamlined regulatory processes, enabling startups to reduce their time-to-market. Emmanuel Durou, technology, media and telecommunications leader at Deloitte Middle East However, with stronger business and intellectual property laws, there is increasing trust in local company structures like the Simplified Closed Joint Stock Co. Al-Anizy also highlighted the advantages of Riyadh's bankruptcy laws for tech startups facing liquidity challenges. The 2018 Bankruptcy Law emphasizes debt restructuring over liquidation, providing cash-strapped startups a mechanism to negotiate with creditors early before default, he said. The law was introduced to provide guidance on the adoption and implementation of bankruptcy proceedings. Despite its name, the primary objective of the Bankruptcy Law is not liquidation but rather the rescue of insolvent businesses through reorganization and financial restructuring. Al-Anizy said that this sophisticated regime demonstrated in recent large-scale restructurings, has garnered recognition from founders and investors alike. On the dispute side, mediation and the Saudi Center for Commercial Arbitration are becoming preferred avenues for resolution. For foreign founders setting up their MENA Headquarters in Riyadh, Al-Anizy stressed the importance of clear contractual considerations. 'Founders having an unclear picture of their share cap table, equity vesting, or the conversion of any issued SAFE/KISS notes is an easily avoidable way to lose investor confidence,' he warned. A Simple Agreement for Future Equity is an investment instrument that allows startups to raise capital without immediately determining a valuation, converting it into equity upon a future-priced round or liquidity event. Similarly, a Keep It Simple Security operates as either a convertible note or a SAFE-like agreement, offering standardized terms for early-stage funding. Both are designed to streamline early investments while deferring valuation discussions, but founders must track their terms, such as discount rates, valuation caps, and conversion triggers, to maintain transparency with investors. Al-Anizy also advised explicit contractual clauses to ensure intellectual property rights are clearly vested in the company, safeguarding the business and maintaining investor trust. Riyadh has become a magnet for multinational corporations, with around 600 foreign companies establishing their regional headquarters in the city since the launch of the Saudi Program for Attracting Regional Headquarters in 2021. Spearheaded by the Ministry of Investment and the Royal Commission for Riyadh City, this initiative is a cornerstone of Vision 2030's goal to position Saudi Arabia as a global business hub. The program offers compelling incentives, including a 30-year tax relief package with 0 percent corporate and withholding taxes, streamlined setup processes, and access to world-class infrastructure. Riyadh's strategic location at the crossroads of Asia, Africa, and Europe, combined with its skilled workforce and economic stability, has made it the top choice for multinationals looking to expand in the region. Riyadh's appeal is further bolstered by business-friendly policies, including 100 percent foreign ownership in key sectors, tax incentives, and streamlined licensing through the Saudi Business Center. Startups also benefit from partnerships with major corporations like Aramco and STC, as well as accelerator programs from Flat6Labs and 500 Global. With a population of 36 million and the largest economy in the Middle East and North Africa, Saudi Arabia offers startups access to a high-spending consumer base and a gateway to regional expansion. The Kingdom's advancements in technology were recognized in the 2024 Global Innovation Index, where it secured the 47th spot among 132 countries. Events such as the LEAP Tech Conference and Riyadh Season continue to draw global investors, while local success stories — from Tamara, Saudi Arabia's first fintech unicorn delivering payments and banking, to Salla, an e-commerce platform empowering SMEs with digital storefronts — demonstrate Riyadh's potential as a launchpad for high-growth companies.
Trade Arabia
04-06-2025
- Business
- Trade Arabia
Ghana, UAE sign $1bn Accra innovation hub deal
Ghana is set to benefit immensely from a newly signed $1 billion deal with the United Arab Emirates (UAE) to build a cutting-edge innovation hub in Accra, solidifying its ambitions to lead Africa's digital transformation. The agreement, formalised through a memorandum of understanding (MoU) between Ghana's Ministry of Communication, Digital Technology and Innovation and the UAE's Ports, Customs and Free Zone Corporation (PCFC), marks a significant milestone in Ghana's push to become a continental AI hub. Fully funded by PCFC, the innovation hub will span 25 sq km in Ningo Prampram, Greater Accra. Construction is expected to begin in 2026 and be completed by the end of 2027. Ghana will provide the land, while PCFC brings the capital, technology, and global partnerships. Sam George, Ghana's Minister of Communication, Digital Technology and Innovation, signed on behalf of the government, while Sultan Ahmed Bin Sulayem, Group Chairman of PCFC, represented the UAE. According to George, the initiative reflects President Mahama's vision of transforming Ghana into Africa's next artificial intelligence nerve centre through the 'One Million Coders' programme. 'As you train a million coders, you need to have jobs for these coders, and that is where PCFC comes in,' he said. 'Having the innovation hub built in Ghana, PCFC will come along with the over 11,000 companies that are under their umbrella in the UAE to have a Ghanaian presence.' PCFC is instrumental in the digital transformation of Dubai and currently operates over 11 innovation hubs in collaboration with global tech giants like Microsoft, Oracle, and IBM. With no current footprint in Africa, Ghana's strategic location and skilled youth population made it a natural choice for PCFC's first continental hub. 'Ghana, being the gateway to Africa, reached out to the company to establish the hub,' George added. 'The facility will attract all the big top tech companies in Ghana. So our Business Process Outsourcing, Knowledge Process Outsourcing, AI Engineering, and all the new emerging technology fields will be positioned here in Africa.' He emphasised that the hub would prioritise local talent, employing Ghanaians trained through the coders programme rather than importing foreign skillsets. Bin Sulayem underscored the broader significance of the project: 'The wealth of a country relied on its new ideas or innovation to advance the needed growth for sustainable development.' He reiterated PCFC's long-term commitment to Ghana, promising that the partnership would not only boost technological capacity but also generate thousands of jobs.
