Why Dubai remains a top choice for start-up founders in 2025

• Dubai holds the No.1 spot across the Arab League with a 33% YoY increase, jumping 95 places in six years.
• Founders aiming to do business in the city must seek support from entities like the Dubai Future District Fund, which assisted 190 start-ups in 2024.
• The Chamber of Digital Economy backed the creation and expansion of 1,210 digital start-ups.

The comprehensive Startup Ecosystem Report 2025 by StartupBlink suggests that Dubai is a profitable and stable market setting for local and foreign entrepreneurs. This is not surprising given the strong support provided by government agencies, including the Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development (Dubai SME) and the Dubai Chamber of Digital Economy. These institutions have been integral in promoting innovation, providing funding avenues, and streamlining the process of setting up a business in Dubai.

This article gives an overview of the city’s lucrative and competitive start-up scene. It is part of a broader discussion about Dubai becoming a hub for entrepreneurship within and outside the UAE.

Dubai leads Arab countries: Startup Ecosystem Report 2025

StartupBlink’s 2025 report places Dubai firmly on the global start-up map. The emirate remains the top-ranked city in the Arab League and has moved up six places to rank 44th in the world, representing a 33% YoY boost. This growth is one of the highest among the world’s top 50 start-up ecosystems, including that of San Francisco (1st), New York (2nd), and London (3rd). Over the past six years, Dubai has improved its ranking by an impressive 95 spots.

These improvements are a result of capital inflows, simplified regulatory approaches, and accessible platforms that guide entrepreneurs on how to start a business in Dubai. In fact, resources like the Dubai Startup Guide 2024 provide valuable local insights and feasible strategies for navigating the market.

Government entities that support businesses

According to Startup Genome, Dubai is No.1 in the Gulf in terms of start-up ecosystem value, which hit $23 billion by the end of 2023. The public sector in the emirate is crucial in this achievement.

As the city has developed a profitable and globally recognised start-up ecosystem, government entities such as Dubai SME and the Dubai Chamber of Digital Economy have collectively supported thousands of entrepreneurs. Last year, Dubai SME provided support to over 48,000 Emirati business leaders and contributed to the development of 18,429 local companies.

In parallel, the Chamber of Digital Economy backed the setting up and expansion of 1,210 start-up firms in the digital technology sector. Initiatives such as ‘Create Apps in Dubai’ trained 1,333 Emiratis in mobile app development in 2024. These initiatives emphasise the Chamber’s strategic push to triple the number of app developers in the city by 2025 and back 100 new national tech projects.

The Chamber also hosted 21 events in 2024 and led 20 international exhibitions and roadshows to connect the emirate with global innovation hubs, subsequently making it attractive for investors and innovators keen on doing business in Dubai.

Is Dubai good for start-ups?

Dubai has truly gained global recognition as a thriving hub for start-ups, attracting entrepreneurs from places like Singapore, the United Kingdom, and Kazakhstan. While it may sound clichéd, the support of the government, combined with tax incentives and access to significant funding from sovereign wealth funds and venture capital firms, is crucial for the growth of these start-ups.

In 2024 alone, the Dubai Future District Fund allocates $1.65 billion in capital commitments and supports 190 start-ups. This proves the emirate’s strong financial commitment to innovation and its appeal as a global tech investment destination.

Entrepreneurs looking to start a business in Dubai may consider focusing on sectors like fintech, tourism, real estate, health-tech, logistics, digital commerce, and smart mobility. It’s essential for founders to align with the city’s innovation agenda, form local partnerships, and take advantage of the benefits offered by free zones for greater operational flexibility. In addition, understanding the regulatory landscape and the local culture is vital in sustaining growth in a competitive market such as Dubai.