UAE needs homegrown unicorns to drive economic growth, says Jigar Sagar

The UAE must accelerate its efforts to foster homegrown unicorns to drive economic growth and enhance global competitiveness, urged Jigar Sagar, Founder, Triliv, at the Invest UAE seminar organised by Gulf News at the Amazing Room, V Hotel, Sheikh Zayed Road.

Speaking to a packed audience of industry leaders and investors, Sagar said that the country’s ambition to be a global leader hinges on its ability to nurture high-growth startups. He outlined strategic steps needed to build an entrepreneurial ecosystem capable of producing billion-dollar companies.

Opening with a compelling illustration to highlight the magnitude of growth required, Sagar stated, "A million seconds is about 11 and a half days, but a billion seconds is approximately 31 and a half years. That’s the gap between a million and a billion." Using this analogy, he underlined the gap between being a successful startup and achieving unicorn status  — valuation at or above $1 billion.

Global perspective

Sagar highlighted that globally, there are about 1,400 unicorns, including household names like Tesla and Instagram. However, the UAE, despite being known as a land of ambition and superlatives, currently has only 11 homegrown unicorns — less than 1 per cent of the global total. He said, “I grew up in a land of ambition, under leadership that encouraged us to be in the top 1 per cent, not in a category that represents less than 1 per cent.”

This statistic served as a wake-up call, prompting Sagar to ask, “Where do we stand when it comes to homegrown unicorns?” His message was clear that the UAE has the ambition and resources but needs a more strategic approach to create a vibrant ecosystem that can nurture and sustain high-growth startups.

The four pillars of growth

Sagar identified four critical pillars necessary for building a sustainable ecosystem for homegrown unicorns in the UAE:

1. Smart capital

“There’s a difference between just funding and smart funding,” Sagar explained. He argued that beyond capital, startups need strategic partnerships and collaborative networks. He noted that globally, most unicorns were supported by corporate venture capital rather than traditional investors. “Smart funding comes in the shape of strategic alliances, mentorship, and a genuine desire for mutual success,” he said.

2. Talent and education

While the UAE has made significant strides in education, Sagar highlighted a critical gap. Despite world-class infrastructure, the top-ranked university in the UAE is placed 261st globally. He questioned why only 15 per cent of UAE university students aspire to become entrepreneurs immediately after graduation, compared to 50 per cent in the US. “This is not just an educational gap; it’s a mindset gap,” he said.

3. Mentorship and networking

Sagar noted that the UAE has around 11 to 12 incubation and accelerator programmes, whereas the US boasts over 1,000. “Why don’t we have the most? Why aren’t we the best?” he questioned. He underscored the importance of collaboration, networking, and mentoring as vital components for startup growth.

4. Culture of risk-taking

Cultural attitudes towards failure emerged as a crucial barrier. Sagar pointed out that over 90 per cent of unicorn founders failed in their first ventures, saying that “failure is just a step towards success.” He urged for a cultural shift in how failure is perceived, suggesting that risk-taking should be celebrated rather than stigmatised.

The bigger picture

Presenting a stark comparison, Sagar revealed that in 2023, UAE startups received $1.1 billion in funding compared to $330 billion in the US. While acknowledging differences in population size and GDP, he pointed to Israel, a smaller nation with over 100 unicorns, as a benchmark for the UAE. “It starts with mindset, intent, and policies,” he argued, emphasising the need for policy reforms to fuel entrepreneurial growth.

Sharing his entrepreneurial journey, Jigar Sagar revealed that his mission to empower entrepreneurs was inspired at his graduation ceremony by the words of His Highness Shaikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai: “I look forward to seeing you work for the UAE economy.” This vision led him to establish Triliv Holdings, focusing on pre-seed and seed capital investments — areas most investors avoid due to higher risks.

“I’ve had my share of failures and successes,” Sagar admitted, “but each failure was a step closer to success.” His personal commitment is to empower over a million entrepreneurs, fostering a culture of innovation and economic growth in the UAE.

Ending his keynote with a call to action, Sagar urged:

“It’s not a question of ‘if’ but ‘when.’ For too long, we’ve celebrated millionaires flying into the UAE. Now, it’s time to see millionaires being born here,” he said.

Free Zones Authority of Ajman is Platinum Sponsor; Strategic sponsors are Sharjah Media City (Shams), Meydan Free Zone and Triliv; Rakez and Shuraa/Dart are Silver Sponsors.

 Support partners are Ahmad Alagbari Chartered Accountants, Hussain Al Shemsi Chartered Accountants, Fame Advisory, Liberty Business Commercial Brokers, Helios Consultancy, and AKW Consultancy. V Hotel is Venue Partner, Arpan Flower is Flower Partner, and Trophy Partner is Crystal Gallery.