START-UP MONTHLY: February 2025

A look into the Middle East’s Start-up Ecosystem by Lorenzo Jooris, CEO of Creative Zone

Dear Reader,?

In a world grappling with widespread uncertainty, the UAE stands out as a beacon of stability and confidence. The 2025 Edelman Trust Barometer reveals that the UAE is among the most trusting nations globally, a stark contrast to declining trust levels seen in many major economies. With an impressive 82% trust rating, the UAE government enjoys unparalleled confidence from its citizens, far surpassing the global average. This strong foundation of trust, mirrored in high confidence levels in UAE businesses as well, underscores the nation's resilience and provides a solid platform for continued growth and prosperity. Read on to explore how the nation continues to strengthen the public and private sectors' trust.

Start-up Spotlight: This Month's Success Stories

UAE Fintech Startup Blum Raises $5 Million to Gamify Crypto Trading

Blum, a UAE-based fintech startup, is shaking up the crypto world with its innovative approach. They've secured a solid $5 million in funding to fuel their mission: making decentralized exchange trading accessible to everyone. By integrating trading into a Telegram mini-app and using gamification, Blum is breaking down barriers and opening up the world of digital assets to a wider audience.

Abu Dhabi-Backed Dream Security Hits $1.1 Billion Valuation

Dream Security, co-founded by former Austrian chancellor Sebastian Kurz, is living up to its name. With a fresh $100 million in funding, the Abu Dhabi-backed Israeli cybersecurity firm has achieved a remarkable $1.1 billion valuation. Dream Security is using cutting-edge AI to protect critical infrastructure, proving that innovation and collaboration can lead to incredible success.

Dubai's Qeen.ai Secures $10 Million Seed Funding

Dubai-based Qeen.ai is making waves with a massive $10 million Seed funding round – one of the largest in the MENA region! This ambitious startup is building AI-powered "agents" that automate key e-commerce tasks, from marketing to sales. With this major investment, Qeen.ai is poised to revolutionize how businesses operate online, driving efficiency and growth in the digital marketplace.?

Business Launchpads: Accelerators, Incubators, and Other Start-Up Programs

RAK DAO Launches $2 Million Accelerator for Web3 Startups

RAK Digital Assets Oasis (RAK DAO), has launched its inaugural accelerator program - Builder's Oasis. With a funding pool of USD $2 million, this program is designed to support Web3 startups in the gaming, AI, and blockchain infrastructure sectors. The program aims to attract over 150 global applicants, offering select participants $100,000 in funding and expert guidance.

Hub71 Welcomes 27 Startups with $145M in Funding to Latest Cohort

Hub71, Abu Dhabi's global tech ecosystem, named 27 startups as part of Cohort 16 across Hub71's various programs. One in three startups in the Cohort is based in the UAE, showcasing the nation's growing status as a global entrepreneurship hub.

Saudi Central Bank Greenlights Four Fintechs for Regulatory Sandbox

The Saudi Central Bank (SAMA) has granted approval for four new fintech startups to experiment with their innovative solutions within SAMA's Regulatory Sandbox. The startups include SpireTech (open banking), The Lending Hub and Soar (P2P lending), and Ldun (factoring for SMEs). This initiative highlights SAMA's ongoing commitment to advancing the Saudi fintech sector and promoting financial inclusion and innovation.

The Entrepreneurship Pulse: The News That’s Shaping the Entrepreneurial Landscape

Global FDI Rises 11% in 2024

Foreign direct investment (FDI) is at a pivotal juncture, as indicated by the latest Global Investment Trends Monitor recently published by UN Trade and Development (UNCTAD). In 2024, global FDI experienced an 11 percent increase, reaching an estimated $1.4 trillion. For this year, UNCTAD forecasts moderate growth in 2025, but significant risks remain.

Dubai GDP Grows 3.1% to Dh339 Billion in First Nine Months of 2024

Dubai's economy continued its strong upward growth trajectory, with Gross Domestic Product (GDP) in the first nine months of 2024 rising 3.1 per cent from the same period in 2023 to reach Dh339.4 billion. The surge highlights significant strides across key sectors, including wholesale/retail trade, transportation/storage, and financial/insurance activities.

UAE's AI Push Projected to Add $100 Billion to GDP by 2030

The UAE is solidifying its status as a global frontrunner in Artificial Intelligence (AI) by deploying extensive strategies that encourage innovation, investment, and favorable legislation. With its sophisticated infrastructure and proactive policies, the nation is attracting top AI talent and startups. The UAE is expected to rank third globally in AI's contribution to economic growth.

Inside the Economy: Market, Economy, and Industry Insights

Limited Supply Drives Continued Growth in Dubai's Ultra-Luxury Property Market

Dubai's ultra-luxury real estate market continues to be a magnet for the world's elite. While sales of these exclusive properties have soared, finding a move-in ready dream home is becoming increasingly challenging. This limited supply, coupled with Dubai's ever-growing appeal to high-net-worth individuals, suggests that prices will continue their upward trajectory in 2025.

DIFC Reports Record $484 Million Revenue, Marking 20 Years of Growth

The Dubai International Financial Centre (DIFC) had a banner year, marking two decades of success with record-breaking financial results. DIFC's 37% revenue increase, reaching $484 million, highlights its vital role in Dubai's thriving economy. The influx of new companies, especially in the dynamic tech and innovation space, shows that DIFC is the standard for global financial centers.

Dubai Industrial City Attracts Over $95 Million in F&B Investments

Dubai Industrial City is proving to be the perfect environment for the food and beverage (F&B) sector to flourish. Attracting over AED350 million ($95.3 million) in investments in 2024, the industrial hub is playing a crucial role in strengthening the UAE's food security. By fostering local production and innovation, Dubai Industrial City is helping to build a more sustainable and resilient food ecosystem for the nation.?

I would love to hear your thoughts.

Lorenzo Jooris

[email protected]