Venture capital firms and scale-ups exemplify the value of starting a business in Dubai

• UAE start-ups raised AED543 million from 23 deals between April and May 2025.
• VC firms in Dubai like MEVP, Global Ventures, and VentureSouq are scaling fintech, logistics, and BNPL firms into regional leaders.
• For global entrepreneurs, starting a business in Dubai offers access to venture capital, strong regulatory support, and regional expansion potential.

Start-ups in the MENA region raised a total of $517 million (about AED 1.89 billion) in April and May 2025, according to data from Lucidity Insights. This increase shows that investors are becoming more confident and willing to invest in the market. The UAE is among the leading players in this rise, with $148.7 million (approximately AED543 million) across 23 deals. Within the country, Dubai’s role as a source and recipient of VC underlines its strong ability to back start-ups and scale them into globally competitive enterprises.

This content piece is the third instalment in a broader theme that seeks to understand Dubai’s start-up environment. It focuses on the city’s remunerative VC environment by providing examples of local investors funding homegrown and international businesses based in the emirate. Additionally, it notes how more and more global investment firms are looking to Dubai to discover and support innovative local start-ups.

How essential are Dubai VC firms in the local start-up environment?

Dubai’s venture capital ecosystem has turned from passive capital providers to active proponents of homegrown innovation. Today, local VC firms are backing a wide range of businesses that operate in fields such as digital finance, logistics, and health-tech. Here’s a look at some of the key players and the kinds of companies they support:

A. Middle East Venture Partners (MEVP)

One standout example is Middle East Venture Partners, a Dubai-based VC that has led a major funding round for a local logistics and e-commerce enablement platform. MEVP’s investment in the company underscores a clear thesis on digitising operational bottlenecks in a region where logistics and fulfilment remain key to e-commerce scalability. MEVP typically invests between $1M and $10M, and the start-up fits its playbook of tech-enabled scale-ups with regional relevance.

B. Global Ventures

Another prominent Dubai-headquartered VC firm is Global Ventures. This firm backs a fintech company that provides seamless personal and business payment solutions. The funding helped support the company’s cross-border expansion and compliance upgrades, thereby complementing Global Ventures’ strategy to invest in B2B fintech solutions with strong fundamentals and regional scale potential. The VC company typically invests between $1 million and $20 million, making this firm a compelling fit due to the revenue-generating, compliance-ready B2B fintech model it supports.

C. VentureSouq

A third strong example is VentureSouq, which backed the UAE’s leading Buy Now, Pay Later (BNPL) platform in its early-stage rounds. VentureSouq’s focus on fintech innovation matched the company’s vision of offering ethical, interest-free credit alternatives — an increasingly attractive model as consumer credit tightens. The investment is undeniably strategic, as the company has since raised over $350M in cumulative funding. The start-up has grown to become a unicorn and has since expanded into Saudi Arabia and Kuwait, becoming the region’s BNPL benchmark.

These examples show how local VCs are integral in reinforcing the appeal and ease of doing business in Dubai. In addition to private VC firms, Dubai’s start-up environment also benefits from a diverse range of capital providers. Sovereign wealth funds like the Investment Corporation of Dubai are influential in scaling high-impact ventures. Local family offices and semi-government institutions are also increasingly participating in early- and growth-stage funding rounds.

This mix of public and private capital ensures that promising businesses have access to both patient capital and high-growth opportunities — a combination rare in emerging ecosystems. By targeting high-impact sectors and scalable business models, local investors help turn start-ups into regional leaders.

Is Dubai a launchpad for international companies?

Start-ups in the emirate are attracting local venture capital as well as experienced investors who see the city as a place to grow regionally and internationally.

A key example of a start-up securing significant funding

A compelling example is Qashio, a Dubai-headquartered B2B spend management platform that raised $19.8 million in a hybrid equity and non-equity round in early 2025. After achieving profitability in Q1 2025 with over $1.2M in net income, the company secured additional funding to support expansion into Saudi Arabia and Europe — and to strengthen compliance capabilities. This development, therefore, helped make it a large B2B fintech loyalty ecosystem in MENA.

Rocketship.vc, a Silicon Valley VC establishment known for supporting data-driven companies, led this funding round. Other investors included MoreThan Capital, an early-growth VC firm from Luxembourg, as well as local family offices and banks. Notably, the world’s most established multinational companies, such as Emirates, Air France, Accor, and IHG, are among the Tier 1 partners of Qashio. Subsequently, the firm has achieved an 800% YoY rise for the third year in a row.

The success of the Dubai-based firm is just one of many examples highlighting the city’s appeal as a regional headquarters for international companies.

Global companies expanding into the emirate

Recent reports indicate that many companies from the US, UK, India, Norway, Singapore, Japan, and Central Asia are selecting Dubai as a launchpad into the broader MENA market.

These businesses often collaborate with prominent local partners to bolster and amplify their presence in the region. Notably, more than 20 Central Asian start-up companies are currently operating in the UAE. Additionally, reports show that 49% of all Chinese businesses in Dubai are small and medium-sized enterprises. This data highlights the emirate’s strategic appeal as a metaphorical springboard for regional scaling.

Should global firms consider setting up a business in Dubai?

International firms evaluating growth in the MENA region should look into starting a business in Dubai as it offers a strategic edge that is difficult to replicate elsewhere. The emirate is undeniably a magnet for venture capital and a launchpad for scale-ups aiming to expand into neighbouring markets.

The emirate’s unique positioning is further enhanced by its solid regulatory system, globally connected infrastructure, and thriving VC environment. Here’s what global companies should consider when setting up a business in Dubai:

1. Leverage the VC ecosystem

Tap into Dubai’s active network of venture capital firms like MEVP, Global Ventures, and VentureSouq. These firms provide capital and, potentially, strategic guidance, sector expertise, and regional connections.

2. Choose sectors aligned with investor appetite

Target high-impact sectors like fintech, logistics, health-tech, and AI. These areas attract ongoing interest from investors and have government support for digital growth.

3. Establish a scalable, compliance-ready business model

A quick research would prove that investors in Dubai favour companies that demonstrate strong fundamentals, regulatory foresight, and the potential to expand across MENA. Look into such companies to ensure optimal solutions that meet regional compliance standards will scale faster.

4. Use Dubai as a regional headquarters

The city is ideal for global companies seeking a central base in the Middle East. With its investor-friendly climate, world-class infrastructure, and stable legal environment, starting a business in Dubai can streamline cross-border expansion and partnership-building.

5. Partner with strategic local enablers

Forming alliances with esteemed local corporate firms — such as Seed Group, a company of The Private Office of Sheikh Saeed bin Ahmed Al Maktoum — can significantly fast-track market entry. These partnerships provide access to key decision-makers, distribution channels, and government initiatives, which can be crucial for success.

6. Build with financial discipline and long-term vision

VCs in Dubai are looking for sustainable growth and efficient use of capital. Having a solid long-term plan can help you secure funding and improve your chances of becoming a leader in your sector.

In essence, setting up a business in Dubai allows global founders and investors to plug into a thriving innovation economy. With the right sector focus and strategic execution, the city provides a strong foundation for scale, speed, and sustainability in the region.