There is rising interest from Indian startups to cooperate with and expand to Abu Dhabi, stemming from the strong business and economic ties between the UAE and India.
Abu Dhabi’s position as a regional hub for infrastructure investments and the digital economy is attracting startups to leverage the UAE’s position as a strategic trade hub to expand their reach in new markets, including the Middle East and Europe, with an entry point through Abu Dhabi.
At the same time, India’s growing startup ecosystem is now becoming an apple of investors and innovators’ eye globally.
“Abu Dhabi places emphasis on nurturing and attracting a highly skilled and highly productive workforce with a key focus on innovation. Access to and collaboration with India’s huge talent pool will contribute to Abu Dhabi’s startup ecosystem and help foster innovative businesses,” says HE Dr Tariq Bin Hendi, Director General of the Abu Dhabi Investment Office (ADIO), in a recent interview with YourStory.
HE Dr Tariq leads the organisation’s efforts to grow and diversify Abu Dhabi’s economy through private sector investment. He also oversees strategic initiatives that support the emirate’s economic growth and reputation on the world stage.
Opportunities Indian startups can leverage
H.E. Dr. Tariq believes that in the current pandemic scenario, when Indian startups have been severely impacted with funds drying up, limited business opportunities, and diplomatic face-off with China, the founders are looking for opportunities to remain buoyant.
Abu Dhabi is home to a number of the world’s largest sovereign wealth funds, as well as venture capitalists and other equity investors. Abu Dhabi also has numerous incubators and accelerators that can provide critical support for companies in the form of networking, mentorship, resources, in addition to being a gateway to other investors.
“In such a scenario, the role of Abu Dhabi gets all the more relevant and provides a plethora of opportunities for Indian startups that can be leveraged and pivot the startups to the growth trajectory,” he adds.
Here are some key initiatives taken and milestones achieved by Abu Dhabi as a startup ecosystem:
- Ranked 12th globally in the World Bank’s Ease of Doing Business Subnational Report 2020
- Lower down business setup fees by 94 percent and a 71 percent reduction in requirements to start a business
- Has established world-class universities and the Emiratisation policy to boost the capabilities of citizens
- Immigration processes are designed to make it easy for skilled workers to obtain work permits
- The UAE led investment growth by number of deals and funding in the region, acquiring 61 percent of all MENA investments in the first half of 2021 (Source: MAGNiTT)
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Helping Indian startups beat challenges
Any startup entering a new market needs to familiarise themselves with the ecosystem to fully understand the opportunities and partnerships available. Other general challenges that startups face, usually due to their smaller size, are lack of market access and funding. These challenges can put them at a disadvantage compared to larger companies.
“As such, Abu Dhabi has invested heavily to provide startups well-rounded support that targets common problems encountered by early-stage companies,” he adds.
For example, startups sometimes face challenges gaining access to markets in the form of customers or partnerships. To that end, Abu Dhabi has built an encompassing ecosystem that creates wide-ranging opportunities for startups.
“We have established accelerator and incubator programmes targeted at different sectors and company types to boost startup development. We also provide non-financial incentives that help companies bypass common obstacles like licences and fees,” he adds.
Another risk that startups face is lack of funding. In this respect, startups can access financial support via incentives or equity funding from across the ecosystem. Abu Dhabi is also building up its capital market by attracting asset managers and international investors to establish local offices here that can provide financing, expansion plans and exit options for startups.
“That said, more than just providing funding, Abu Dhabi is here as a long-term partner. We offer a great destination for startups to live and work, so they can focus on their core business and scale up ambitions. We want to hear from startups to better understand their ambitions as well as the difficulties that stand in the way of them achieving their goals,” he concludes.
