Start-ups enrolled with in5, the incubator under Dubai's Tecom Group, have raised more than Dh2.4 billion in funding from its inception through to the end of 2022.
FinTech companies dominated funding rounds last year, accounting for more than half of the total investments received, the incubator said on Thursday.
The incubator welcomed 160 start-ups in 2022, an annual growth of 31 per cent, bringing the total number of companies under its fold to more than 750, it said.
The number of start-ups led by women more than doubled last year, with more than half in the technology field, in5 said.
“The days of lone-wolf entrepreneurship are gone,” Majed Al Suwaidi, senior vice president of Dubai Media City, one of the business districts under Tecom said.
“Dubai has created a dynamic community where founders can connect with like-minded individuals, participate in global business ecosystems, and contribute to economic growth and innovation.”
The UAE's start-up scene is an important pillar of the country's diversification drive as it prepares for the economy of the future, powered by digitalisation.
Several programmes have been launched to boost the sector, including the updated Entrepreneurial Nation programme that seeks to develop more than 8,000 small and medium enterprises and start-ups by 2030, and Future 100, aimed at supporting and honouring the top 100 start-ups that will have a significant impact on the economy of the Emirates.
The strength of the UAE's FinTech sector is expected to continue, which would make it one of the fastest growing in the Mena region, in5 said.
In a trend that began in 2021, the local FinTech sector has experienced grown substantially.
FinTech led in terms of funding ($2.25 billion) and number of deals (351) in the Middle East, Africa, Pakistan and Turkey region in 2022, start-up platform Magnitt reported last month.
The Tecom Group's portfolio comprises 10 districts, including Dubai Internet City, from which successful home-grown start-ups such as “super app” Careem and e-commerce platform Souq.com emerged.
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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