UAE’s regulatory reforms are a magnet for GCC startups
UAE’s tech startup scene is seeing heavy funding action, and GCC investors need to join in
The UAE has successfully proven, yet again, its attractiveness to international investors and businesses. The administrative efforts of the past two years have demonstrated the country’s determination to remain the top ranked investment hub in the region.
The latest IPO in Dubai showcased the global attention towards investment opportunities, which resulted in a substantial increase in the IPO size offered by DEWA, which finalized it at18 per cent and up from the original 6.5 per cent. The IPO’s books witnessed a broad range of 65,000 investors with a total of Dh315 billion in order values, making it one of the world’s largest listed utility company at an evaluation of Dh124 billion.
Startup capital
The success of Expo 2020 and the sharp incline in oil prices is helping with the UAE rebounding swiftly to accelerated growth rates and proving itself as an economic safe haven targeted to welcome more investors and value-adding individuals. The UAE has positioned itself as a leading tech hub in the region as local startups acquired 45 per cent of the funding raised across the region. This shows the great potential in UAE startups to mature and expand to service the region, which has encouraged many GCC startups to expand and relocate in Dubai and Abu Dhabi.
Capital markets’ ties
The UAE aims to strengthen its economic ties with its GCC neighbours for mutual benefits. AD Ports has signed an agreement with Kuwaiti Ports Authority to enhance cooperation and develop a virtual maritime passage to increase trading volumes between the countries. There is also an agreement between Boursa Kuwait and Abu Dhabi’s ADX and the Kuwait Clearing Company to facilitate inter-exchange trading and encourage dual listings. It follows an agreement between Kuwait Capital Markets Authority and Dubai Financials Services Authority to enhance bilateral ties, signed back in 2015.
The GCC region has evolved to prove itself as a region with substantial potential, enjoying political stability and ample natural resources along with comforting dollar-pegged currencies.