Ahmad Alwan, deputy chief executive of Hub71, at the technology centre's Impact event for start-ups in Abu Dhabi on Monday. Khushnum Bhandari / The National
Ahmad Alwan, deputy chief executive of Hub71, at the technology centre's Impact event for start-ups in Abu Dhabi on Monday. Khushnum Bhandari / The National
Ahmad Alwan, deputy chief executive of Hub71, at the technology centre's Impact event for start-ups in Abu Dhabi on Monday. Khushnum Bhandari / The National
Ahmad Alwan, deputy chief executive of Hub71, at the technology centre's Impact event for start-ups in Abu Dhabi on Monday. Khushnum Bhandari / The National

Funding for start-ups at Abu Dhabi's Hub71 hit $1.22bn at the end of 2022


Alvin R Cabral
  • English
  • Arabic

Start-ups at Hub71, Abu Dhabi's global technology system, have raised nearly Dh4.5 billion ($1.22 billion) in funding globally until the end of 2022, as its company and investor bases continued to grow, its deputy chief executive has said.

The figure, which is up more than 40 per cent from the Dh3.2 billion that was raised until the third quarter of 2022, also helped start-ups generate Dh3 billion in revenue at the end of last year, up 20 per cent from the end of the third quarter, Ahmad Alwan told The National in an interview.

Hub71 more than doubled its start-up numbers to over 200 last year, securing 41 deals with corporate partners worth Dh160 million, Mr Alwan said.

More than 900 jobs have been created since Hub71's inception, he added.

“We believe that we are on the map when it comes to the technology landscape. There are a lot of initiatives that exist within Abu Dhabi and the wider UAE that we can further build on to continue positioning and amplifying Abu Dhabi as a global technology hub and ecosystem," Mr Alwan said ahead of Hub71's Impact event, which was held in Abu Dhabi earlier this week.

“The ultimate objective is to build and develop tech companies out of Abu Dhabi. Our target is to continue to grow our funding figures and to see start-ups that are able to raise a significant amount of funding,” he said.

“The way we do that is we continue to liaise with our investor partners that are seriously and actively exploring the opportunity within the Hub71 and Abu Dhabi start-up ecosystem and channelling that.”

Hub71's role is part of a broader strategy by the UAE government to promote entrepreneurship across all sectors. The Emirates aims to become “the entrepreneurial nation by 2031", according to the Ministry of Economy.

The country also aims to be home to 20 unicorns — or start-ups with a valuation of $1 billion and above — by then, Minister of Economy Abdulla bin Touq said during the launch of the Entrepreneurial Nation 2.0 programme last October.

Worldwide start-ups are booming as they take on the challenges of developing solutions for a world that is becoming increasingly digital in key sectors such as retail, services and commerce.

The value created by start-ups globally is about $3 trillion, which is almost on par with the gross domestic product of a G7 economy, according to advisory company Startup Genome.

Funding for these companies set a record in 2021 when it hit $621 billion, according to CB Insights.

In December, Hub71 announced that its start-ups had collectively raised $1 billion.

“We brought in investor, corporate, talent, government and regulatory partners, all to contribute to building an ecosystem that helps start-ups grow,” Mr Alwan said.

Hub71's start-ups currently cater to more than 20 industries, according to its website.

Among the sectors it plans to focus on further are financial technology and its digital asset subsets, health, education, transport, logistics, travel climate and food, he said.

There are a lot of initiatives that exist within Abu Dhabi and the wider UAE that we can further build on to continue positioning and amplifying Abu Dhabi as a global technology hub and ecosystem
Ahmad Alwan,
deputy chief executive of Hub71

The development of the digital asset space is to be reinforced with emerging technologies, including artificial intelligence and blockchain, Mr Alwan said.

“We have planned to create specialised ecosystems. We started off with digital assets, but on our trajectory is to build specialised ecosystems around each of these subsectors,” he added.

“We have identified this in line with the government's objectives … we continue to see the importance of these to help accelerate the adoption of technology and support the growth of this space.”

Abu Dhabi is the “driving force” behind the growth of several start-ups that are “pushing the boundaries”, said Badr Al Olama, acting chief executive of Hub71.

“Abu Dhabi has arrived at the intersection of transformation and innovation … we are now solidifying the impact we generate on a global scale by doubling down on breakthrough technologies that are poised to make game-changing impact,” he said.

Badr Al Olama, acting chief executive of Hub71, at the technology hub's Impact event for start-ups in Abu Dhabi on Monday. Khushnum Bhandari / The National
Badr Al Olama, acting chief executive of Hub71, at the technology hub's Impact event for start-ups in Abu Dhabi on Monday. Khushnum Bhandari / The National
CREW
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The%20specs
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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

The specs

Engine: 2.0-litre four-cylinder turbo

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Torque: 380Nm at 4,800rpm

Transmission: CVT auto

Fuel consumption: 9.5L/100km

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Price: from Dh195,000 

Company%20Profile
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While you're here
Company%20profile
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The specs

Engine: 4.0-litre V8

Power: 503hp at 6,000rpm

Torque: 685Nm at 2,000rpm

Transmission: 8-speed auto

Price: from Dh850,000

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Company profile

Company: Rent Your Wardrobe 

Date started: May 2021 

Founder: Mamta Arora 

Based: Dubai 

Sector: Clothes rental subscription 

Stage: Bootstrapped, self-funded 

Specs

Engine: Dual-motor all-wheel-drive electric

Range: Up to 610km

Power: 905hp

Torque: 985Nm

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Available: Now

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Conflict, drought, famine

Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.

Band Aid

Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.

Match info

Uefa Champions League Group H

Manchester United v Young Boys, Tuesday, midnight (UAE)

The specs

Engine: 3.8-litre twin-turbo V8

Power: 611bhp

Torque: 620Nm

Transmission: seven-speed automatic

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Profile

Company: Justmop.com

Date started: December 2015

Founders: Kerem Kuyucu and Cagatay Ozcan

Sector: Technology and home services

Based: Jumeirah Lake Towers, Dubai

Size: 55 employees and 100,000 cleaning requests a month

Funding:  The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups. 

 

 

Result

6.30pm: Al Maktoum Challenge Round-3 – Group 1 (PA) $65,000 (Dirt) 2,000m; Winner: Brraq, Ryan Curatolo (jockey), Jean-Claude Pecout (trainer)

7.05pm: Handicap (TB) $65,000 (Turf) 1,800m; Winner: Bright Melody, James Doyle, Charlie Appleby

7.40pm: Meydan Classic – Listed (TB) $88,000 (T) 1,600m; Winner: Naval Crown, Mickael Barzalona, Charlie Appleby

8.15pm: Nad Al Sheba Trophy – Group 3 (TB) $195,000 (T) 2,810m; Winner: Volcanic Sky, Frankie Dettori, Saeed bin Suroor

8.50pm: Dubai Millennium Stakes – Group 3 (TB) $130,000 (T) 2,000m; Winner: Star Safari, William Buick, Charlie Appleby

9.25pm: Meydan Challenge – Listed Handicap (TB) $88,000 (T) 1,400m; Winner: Zainhom, Dane O’Neill, Musabah Al Muhairi

Updated: March 23, 2023, 6:53 AM