Eight key reasons Central Asian start-ups are choosing the UAE as a launchpad for growth

• Over 20 Central Asian start-ups have expanded their business activities into the UAE.
• Central Asia’s venture capital market surged to $96 million, with significant funding from investors from the UAE.
• The UAE funds profitable markets like fintech, AI, health tech, and adtech — fields where many Central Asian startups are already engaged.

In 2024, Central Asia’s venture capital market surged to $96 million, according to data from RISE Research, KPMG, and other partners. This rise reportedly came from 47% local investors and 53% international investors, with notable funding from MENA-based investors. Kazakhstan led the charge, accounting for 74% of the region’s venture capital activity, which amounts to $71 million.

With such a rise also comes the increasing appetite of small and medium companies to seek opportunities abroad to scale their operations. Notably, over 20 start-ups from the region are already operating in the UAE, confirming its strategic appeal as a metaphorical springboard for scaling.

Below is an overview of the key reasons why a growing number of entrepreneurs from Central Asia are exploring how to start a business in the UAE and specifically Dubai.

1. Access to a developed VC ecosystem

One of the main reasons Central Asian start-ups choose the UAE is its well-established venture capital ecosystem. While countries like Kazakhstan and Uzbekistan show strong start-up activity, they often face limitations in securing late-stage funding. In contrast, the UAE offers wider access to capital, experienced investors, and international funding networks. For instance, foreign capital accounted for 53% of Kazakhstan’s $71 million in venture deals in 2024, with notable contributions from UAE-based investors. 

The UAE’s financial centres, such as DIFC and ADGM, provide advanced, international-grade regulatory transparency, legal infrastructure, and investor protection. The ecosystem is further strengthened by sovereign investors like Mubadala Investment Company and the Investment Corporation of Dubai.

2. Strong private sector partnerships

Distinguished private corporations are highly pivotal in providing young international firms and enterprises with optimal solutions on how to start up a business in the UAE, and especially in Dubai. Among the leading enablers in this space is Seed Group, a company of The Private Office of Sheikh Saeed bin Ahmed Al Maktoum. The Group has particularly supported global founders in setting up a business in the UAE and specifically Dubai by leveraging its royal, public, and executive-level connections. Its long-standing presence and credibility make it a trusted partner for firms looking to accelerate regional growth.

3. Active exit and expansion opportunities

Dubai’s active M&A environment and presence of global VCs and corporates increase the chances of strategic exits or follow-on investments. This is particularly valuable for Central Asian startups facing a lack of late-stage capital locally.

4. Sector-specific support and innovation focus

The UAE actively supports high-growth sectors such as fintech, AI, health tech, and adtech — fields where many Central Asian startups are already engaged. Through initiatives like the Dubai Future Foundation and AI Retreat, coupled with world-class exhibitions like WHX Dubai (rebranded from Arab Health) and GITEX, start-ups gain valuable connections and access to accelerators, grants, and corporate partnerships that facilitate rapid development.

5. Enabling infrastructure for groundbreaking technologies

The UAE’s world-class infrastructure, high digital adoption, and innovative economy are consistent with the needs of Central Asian start-ups and SMBs operating in competitive sectors.

6. Favourable tax and regulatory environment

While often reiterated, international firms and enterprises benefit from the UAE’s 100% foreign ownership, zero income tax, and supportive legal frameworks, depending on the selected free zone. These internationally recognised advantages significantly reduce entry barriers for foreign entrepreneurs, particularly in Dubai.

7. High concentration of wealth and HNWIs

Dubai particularly hosts the highest wealth concentration in the Middle East, which is deemed a significant source of private equity and angel investments. Companies looking to start a business in the field gain proximity to these investors.

8. Bilateral trade and investment bridges with Central Asia

The UAE has strengthened its economic ties with Central Asia through bilateral agreements and joint ventures. This makes setting up a business in the UAE and specifically Dubai equally feasible and strategically aligned with broader regional trade policies.

How to start and scale a business in the UAE?

As Central Asian companies look outside of their domestic markets, the UAE offers the right combination of capital, sector-specific full infrastructure, and government support. To successfully start a business in the UAE and specifically Dubai, entrepreneurs should:

• Assess market fit and readiness for expanding internationally;
• Partner with a reliable local expert to navigate legal, financial, and operational issues.
• Select the right free zone like DIFC, DMCC, or ADGM based on sector focus;
• Join programs that offer funding, mentorship, and access to investor networks; and
• Focus on areas of innovation supported by national development plans.

With its thriving business environment, the UAE offers Central Asian start-ups a scalable foundation to develop their organisations and reach international markets.