Fostering Fintech – How Abu Dhabi is Cultivating an Ecosystem For Innovation
Located at the crossroads of East and West, Abu Dhabi has arisen as a prime contender in the Middle East for capturing the ideas and ambitions of the world’s leading tech startups. Let’s learn more about Abu Dhabi’s global tech ecosystem ahead of Hub71’s Impact Virtual Event this March.
Innovation and a strong economy are not taken lightly in the UAE’s capital. Driven by a clear commitment to establish a sustainable, diversified economy, Abu Dhabi is ramping up its support for technology startups as the UAE embarks on becoming an ‘Entrepreneurial Nation’ by 2031.
Going beyond the Ghadan 21 programme launched in February 2019, designed to strengthen Abu Dhabi’s competitiveness, the emirate is positioning itself for a future anchored on resiliency and progress.
This vision has focused attention on nurturing startups that are developing cutting-edge innovative solutions to the world’s most pressing challenges.
A multitude of influential organisations in Abu Dhabi are taking an active interest in the ideas of exceptional founders. The Abu Dhabi Investment Office (ADIO) kicked off 2022 with adding three new partnerships to its Innovation Program, which has already delivered AED1billion ($272million) worth of incentives to startups.
Similarly, Abu Dhabi Department of Economic Development (ADDED) recently launched the ‘Investor Journey’ which seeks to address the needs of current and prospective businesses, entrepreneurs, and investors.
By reducing costs, offering seamless integration and an advanced service ecosystem, this new initiative is aiming to create new tech-driven businesses with ease, allowing new ideas to flourish.
Hub71 – driving Abu Dhabi’s tech growth
But without a self-sustaining ecosystem, Abu Dhabi recognises the challenge of driving entrepreneurial excellence. As the financial heart of the UAE, Abu Dhabi accounts for two thirds of the approximate $400billion UAE economy.
With key institutions including Abu Dhabi Global Market (ADGM), Mubadala Investment Company and ADIO among others, this powerful combination is enabling the growth of a burgeoning tech ecosystem that is nurturing fintech companies and a diverse range of startups operating across 18 sectors.
In just under three years, Hub71 has established itself as Abu Dhabi’s primary destination for fintech companies and startups.
Home to leading fintech companies including Nymcard, Tarabut Gateway and Securrency, Hub71 is providing founders with the ability to capitalize on the global tech ecosystem’s combination of essential elements needed to grow.
Access to global markets, a capital ecosystem, corporate and government partners, including Stripe, are part of a vibrant community filled with highly skilled talent, governed by forward-thinking regulation.
“I take great pride in how Hub71 successfully brought together key enablers from global multinational corporations to leading local players to ensure our tech founders can stimulate business opportunities and investments and deepen our talent pool, all of which are critical elements to supporting our future economy.” said Badr Al-Olama, acting CEO of Hub71.
For fintech companies, being based at Hub71 provides the backdrop of ADGM’s open and flexible regulatory environment that promotes business growth, supported by a forward-thinking government.
A multitude of success stories are also emerging from Abu Dhabi and Hub71, including DAPI, a leading banking API, which is making a name for itself globally as a payment infrastructure provider.
Tarabut Gateway, which connects financial services providers with the financial data of customers from partner banks through its Open Banking APIs, raised $13million in a seed round.
Led by founder Abdulla Almoayed, the fintech company achieved what was at the time the largest ever seed funding round in the Middle East and North Africa region.
“The open banking industry is a catalyst for transforming the way banks and fintechs in the region interact with one another,” says Almoayed. “With regional regulators quickly adopting it in their strategies, Tarabut Gateway provides the infrastructure which enables enhanced collaborations between financial institutions and an increasingly agile and flourishing regional fintech sector. Through diligent regulation, this is a once-in-a-lifetime moment for MENA to gain a leading position in the global fintech arena. Something that we are very proud to be playing a part of.”
Fundraising
Enabling the success of startups in the MENA region, a key measure through Hub71’s lens is stimulating fundraising for startups and accelerating deal flow.
For founders ready to take their startup to new heights, it’s not a bad mission to be associated with.
In 2020, Hub71 helped raise AED185 million for startups and supported them in generating revenue worth AED368million. Since then the numbers have skyrocketed, despite the challenges associated with the pandemic.
But for fintech companies in particular, Abu Dhabi is quickly becoming front-of-mind for capital seeking founders and investors. Funding is being deployed from Abu Dhabi, and beyond with regional and global investors increasingly chasing solid returns.
The $30million Series B round closed by Securrency, was a case in point.
Securrency develops blockchain and automated compliance tools that banks and other financial service providers use to instantly trade, settle and make payments. The investment was led by WisdomTree Investment along with Mubadala-backed Abu Dhabi Catalyst Partners, State Street and U.S. Bank.
Similarly, Nymcard recently secured a $7.6million Series A funding led by Shorooq Partners, with participation from OTF Jasoor Ventures and VentureSouq.
And as for fintech companies, Abu Dhabi can be a gateway to growth; the ecosystem is established; and the government is galvanising support from various institutions to create an end-to-end entrepreneurial ecosystem. The UAE’s capital should be on your checklist as you next destination to fulfil your fundraising ambitions.
Register to join the Hub71 Impact Event taking place on 8 March 2022.
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