Since its launch in 2019 through the third quarter of 2022, start-ups at Hub71, Abu Dhabi’s international technology ecosystem, have raised over Dh3.2 billion ($871 million) in capital, generated Dh2.5 billion in sales, and added 800 direct employment.
Hub71 deputy chief executive Ahmad Alwan spoke with The National in an interview at Gitex Global in Dubai on Thursday. The expansion for Hub71 member firms, which number close to 200 presently, comes as investor interest in start-ups rises, making the company a vital contributor to Abu Dhabi’s economy. Hub71’s start-ups were successful in raising $436 million in the first half of 2022, which increased investor interest in them.
There was a resurgence in investor interest at Hub71 after the effects of the Covid-19 pandemic wore off. The momentum has been helping its ecosystem and partner network to support Abu Dhabi to “increasingly position itself to be one of the global epicentres of technology”, said Mr Alwan, who assumed his role at Hub71 earlier this month.
“After the pandemic, there was a huge thirst to get out there to engage with partners to identify opportunities, and that momentum continues to this day. It shows the vibrancy of the start-up industry in Abu Dhabi,” he said.
“Beyond the numbers, we want to build globally enduring technology companies. Abu Dhabi has invested in a lot of initiatives that contribute to the technology ecosystem, with the natural competitive advantages it has.”
Abu Dhabi continues to tap into the potential of start-ups, which have grown exponentially as entrepreneurs use innovation to address consumer needs. They are also increasingly seeking funding from global investors to hasten their development.
Hub71’s role is part of a broader agenda by the UAE government that promotes entrepreneurship across all sectors. The nation aims to become “the entrepreneurial nation by 2031″, according to the Ministry of Economy.
It also aims to be home to 20 unicorns — or start-ups with a valuation of $1bn and above — by then, double than initially planned, Minister of Economy Abdulla bin Touq said during the launch of the updated Entrepreneurial Nation 2.0 programme at Gitex Global on Thursday.
Start-up ecosystems worldwide are consistently growing as they take on the challenges of developing solutions for a world that is becoming increasingly digital in key sectors such as retail, services, e-commerce and governments.
Globally, the value created by start-ups is about $3 trillion, which is almost at par with the gross domestic product of a G7 economy, according to advisory firm Startup Genome. Funding for these companies broke records in 2021 when it hit $621bn, according to CB Insights.
Mr Alwan said Hub71 has a number of initiatives in the pipeline that are being planned with its partners, without elaborating further.
“We like the element of us making an announcement that is substantial and significant. Once we have a material partnership, that is when we will discuss it more openly,” he said.
Hub71’s partners include venture capital companies and wealth funds who are “ready to deploy capital”.
It is also waiting for the time when one of its members will become a global technology company — “graduating from the Abu Dhabi journey”, Mr Alwan said.
“What we aspire is to celebrate is that first amazing success story,” he said.
Hub71 is open to expanding on its “bilateral relationships” with partners in different countries, Mr Alwan said. At the moment, the ecosystem is focused on helping to develop its member companies by taking advantage of its existing partnerships.
Among the sectors Hub71 will continue to develop are finance, education, health, clean technology, mobility, logistics and travel, Mr Alwan said.
“Hub71 has been traditionally sector-agnostic but has rapidly evolved to have a diversified portfolio,” he said.
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