Digital startups surge in Dubai as AI, fintech drive new wave of growth

Dubai: Dubai’s digital economy is expanding rapidly, with 582 startups established or expanded in the first nine months of 2025, highlighting the city’s rising appeal as a global hub for tech-driven entrepreneurship.

New figures from the Dubai Chamber of Digital Economy show that international companies now dominate the Dubai startup scene, accounting for 70% of the new ventures. The trend reflects Dubai’s growing pull as a base for technology companies targeting global markets from the Middle East.

Startup dominance

Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications and Chairman of Dubai Chamber of Digital Economy, stated: “We are building an advanced business environment defined by agility, readiness, and innovation to keep pace with rapid technological change, while enabling digital companies to grow and expand from Dubai into global markets.

"This strengthens the emirate’s appeal as a leading destination for digital investment and tech talent, as well as a global testbed for developing and deploying new-economy solutions in line with the objectives of the Dubai Economic Agenda (D33).”

AI leads startup scene

Artificial intelligence continues to define Dubai’s startup ecosystem. AI companies made up 21% of all new digital ventures, ahead of HealthTech, Software-as-a-Service (SaaS), and FinTech, which collectively represented 17%.

Startups in these fields are focusing on practical solutions in automation, health data management, and digital payments — sectors that have seen rising investor interest across the region. The growing number of companies using AI tools and data analytics also signals Dubai’s role in shaping emerging digital business models.

More choose Dubai

Dubai’s connectivity, market access, and pro-business environment have made it a magnet for tech founders from around the world. Many new startups have relocated from Europe, Asia, and North America to scale operations in the region.

Through the ‘Business in Dubai’ platform, entrepreneurs are finding access to investors, partners, and local networks that accelerate their growth. Almost half of the new startups benefited from incubator or accelerator support, while a third used the platform’s business development and expansion services.

Data-driven sectors gain

Digital startups in Dubai are increasingly data-led. AI-powered applications now extend into logistics, finance, health, and sustainability, helping companies optimise operations and improve customer experiences.

SaaS and FinTech startups are also gaining ground, developing cloud-based solutions for small businesses, and expanding financial inclusion through digital payment and investment tools. HealthTech innovators are integrating AI diagnostics and telehealth models designed for regional healthcare systems.

Expanding global reach

Between January and September, Dubai-based startups and ecosystem players engaged in 16 international roadshows across 17 major cities, including London, Berlin, Paris, Singapore, Toronto, and Seoul.

These missions connected Dubai’s tech community with more than 2,140 digital startups, investors, and incubators, broadening market opportunities and partnerships.

Events such as Expand North Star, the world’s largest gathering for startups and investors, have further strengthened Dubai’s position as a launchpad for digital innovation. The Chamber also released “The Entrepreneur’s AI Playbook”, guiding founders on how to leverage AI to launch and scale their ventures effectively.

Hub for e-businesses

Dubai’s digital economy continues to mature as founders, investors, and talent converge to build companies with global reach. With AI, FinTech, and HealthTech leading the way, the city’s startup ecosystem is emerging as one of the most dynamic in the world — combining international ambition with local innovation.

The first nine months of 2025 underline a clear trend: digital startups in Dubai are no longer just part of the economy — they are driving its transformation.