UAE Venture Capital: Top VC Firms and Startup Funding

In a world where capital, talent and opportunity move across borders faster than ever, global investors are no longer content with passive portfolios or limited access.

Increasingly, investors are building lives – and launching ventures – in jurisdictions that offer not just financial upside but long-term strategic value.

For high-net-worth individuals (HWNIs), entrepreneurs and venture capitalists, the ideal destination blends stability with scalability.

Ideally, that’s somewhere business can thrive, capital is accessible, the rule of law is predictable and the door to residency – or even citizenship – is open to those who invest and contribute.

Few countries have aligned themselves with this kind of global investor mindset as deliberately as the United Arab Emirates.

Over the past decade, the UAE has evolved from a regional trading hub into one of the world’s most dynamic environments for venture capital and startup innovation.

Today, it stands as a strategic crossroads between the Middle East, the North Africa Region and the West and is a magnet for those looking to pair mobility with enterprise.

Dubai and Abu Dhabi, in particular, have become thriving innovation hubs. They offer world-class infrastructure, free zone tax incentives and a growing network of eager venture capital firms.

By concentrating on offering sector-specific growth incentives targeting areas like fintech, health tech, climate and logistics, these cities have emerged as credible alternatives to more established Western centres.

Legal reforms have further strengthened their appeal. Long-term visas, foreign ownership allowance and streamlined company registration processes have removed some of the traditional barriers to entry, making it easier than ever for international investors to embed themselves in the local business ecosystem.

It’s not all good news. The UAE has introduced new taxes in recent times – VAT and a corporate tax rate – and those are having an impact on its fortunes.

But there are undeniable benefits to being based there. There’s a speed and clarity to how it executes policy aligned to economic growth. While other jurisdictions struggle with political gridlock and regulatory fatigue, the UAE continues to move quickly and decisively to attract talent and innovation.

So, if you’re looking to tap into a dynamic, globally connected startup ecosystem with serious investment potential, the UAE should be high on your list.

Here’s what you need to know about venture capital opportunities before getting involved.

Benefits of Raising UAE Startup Funding

For entrepreneurs looking to scale their business in a world-class environment, the UAE offers some great opportunities, which the Nomad Capitalist team has listed below.

A Thriving Startup Ecosystem

The UAE has a growing number of incubators, accelerators and tech hubs designed to support new ventures. 

Whether you’re in fintech, AI, health tech or e-commerce, you’ll find an ecosystem that encourages innovation. Dubai and Abu Dhabi have become magnets for entrepreneurs, offering access to high-quality talent, strategic partnerships and a well-connected business community.

Investor-Friendly Environment

Raising capital in the UAE involves tapping into one of the most pro-investment environments in the world. 

The government actively works to make the UAE an attractive destination for both founders and investors. Unlike other regions, where complex regulations can slow down funding rounds, the UAE makes it easy to deploy capital. 

With no capital gains tax, a low 9% corporate tax and a business-friendly regulatory framework, startups can secure funding without unnecessary bureaucracy.

Access to Global and Regional Markets

The UAE is a gateway to the Middle East, North Africa and South Asia, giving startups access to over two billion consumers. Its central location makes it a prime base for businesses looking to expand into Europe or Asia.

Many startups take advantage of the country’s trade agreements and well-developed infrastructure to scale quickly.

Government Support and Incentives

The UAE rolls out the red carpet for startups. The government has various initiatives to encourage entrepreneurship, from funding programs to reduced licensing fees and long-term visas for entrepreneurs. 

Free zones across the country allow startups to operate with full foreign ownership, zero income tax and minimal restrictions. 

High-Quality Infrastructure

From world-class co-working spaces to state-of-the-art digital infrastructure, the UAE offers everything a startup needs to grow. 

The country has one of the most advanced telecom networks in the world. With smart cities, cutting-edge financial services and easy access to logistics hubs, startups that secure funding in the UAE can operate more efficiently than in many other markets.

Strong Exit Opportunities

For venture-backed startups, an eventual exit is always part of the long-term plan. The UAE’s maturing ecosystem provides multiple exit pathways, whether through IPOs, acquisitions or regional expansion. 

With a growing number of global companies setting up in the UAE, startups that reach scale often find themselves in high demand from potential acquirers. 

Entrepreneur-Friendly Lifestyle

Beyond funding, the UAE offers a world-class lifestyle. 

Entrepreneurs who relocate there benefit from a high standard of living, a tax-efficient environment and a business culture that values ambition. 

With some of the world’s best restaurants, luxury real estate and year-round sunshine, founders who choose the UAE don’t just build great businesses – they enjoy the process, too.

Top 10 Venture Capital Firms in the UAE

Looking to raise venture capital in the UAE? The country offers a growing number of funds that are actively invested in early and growth-stage companies. Here are some of the best ones. 

Arzan Venture Capital

Arzan VC has backed ambitious founders since 2013, focusing on early-stage tech startups. 

With a portfolio spanning over 10 countries, they’ve invested in over 40 companies, including big names like Careem, Swvl and Onfleet. 

They look for startups with a strong Middle East and North Africa (MENA) angle and scalable business models, but steer clear of gaming and hardware-intensive businesses. 

Key facts:

• Founded: 2013
• Focus: Pre-Seed, Seed, Series A
• Sectors: SaaS, e-commerce, IT
• Notable Investments: Careem, Swvl, Onfleet.

Iliad Partners

Based in the UAE and Saudi Arabia, Iliad Partners invests in high-growth, post-revenue companies, mainly in B2B sectors. 

They also help their startups with business development, talent recruitment and market expansion across the MENA region.

Key facts:

• Founded: 2016
• Focus: Pre-Series A, Series A
• Sectors: FinTech, PropTech, logistics, EdTech
• Notable Investments: Trukker, Oseven, Fetchr.

Jabbar Internet Group

Jabbar is one of the most successful VC firms in the region, being behind some of the UAE’s biggest startup exits. They were early backers of Souq, which Amazon acquired in a record-breaking deal, and Instashop, which was snapped up by Delivery Hero. 

Key facts:

• Founded: 2009
• Focus: Seed
• Sectors: E-Commerce, FinTech, software
• Notable Investments: Souq, Instashop, Maktoob.

VentureSouq

VentureSouq is more than just a VC – it’s a platform that connects startups with a powerful network of investors, institutions and corporates. 

With a focus on early-stage, impact-driven companies, they invest in businesses that tackle major economic and social challenges. 

Key facts:

• Founded: 2013
• Focus: Seed
• Sectors: FinTech, HealthTech, FoodTech, digital media
• Notable Investments: Volopay, Zenda, goDutch.

SX2 Ventures

SX2 Ventures is all about the future of healthcare and life sciences. They invest in cutting-edge startups working on longevity, dementia care and emerging market healthcare solutions. 

If your startup is at the intersection of science and innovation, SX2 could be the perfect funding partner.

Key facts:

• Founded: 2017
• Focus: Seed
• Sectors: Healthcare, life sciences
• Notable Investments: Confidential.

NewTribe Capital

If you’re building something in blockchain or crypto, NewTribe Capital should be on your radar. This fund is deeply embedded in the Web3 ecosystem, with over US$100 million in assets under management and more than 150 investments. 

Beyond capital, they also help startups with partnerships, marketing and market access.

Key facts:

• Founded: 2021
• Focus: Seed
• Sectors: Blockchain, cryptocurrency, deep tech
• Notable Investments: Confidential.

Cypher Capital

Cypher Capital has its sights set on crypto, blockchain and digital assets. They take a strategic approach to investing, helping startups with go-to-market strategies, community building and MENA expansion.

Key facts:

• Founded: 2022
• Focus: Seed
• Sectors: Blockchain, crypto, digital assets
• Notable Investments: Splinterlands, Rainfall, Auki Labs.

Shorooq Partners

Shorooq Partners backs some of the fastest-growing tech startups in emerging markets. Beyond investing capital, they provide strategic support, helping startups scale into market leaders. 

With a strong portfolio valued at over US$3.5 billion, they’ve made a major name for themselves in the UAE’s VC scene.

Key facts:

• Founded: 2016
• Focus: Pre-Seed, Seed, Series A
• Sectors: Technology
• Notable Investments: Nuqtah, Nymcard, Breadfast.

Flat6Labs

Flat6Labs is the go-to fund for early-stage tech startups in the MENA region. They run accelerator programs that provide mentorship, office space and initial funding to promising founders.

Key facts:

• Founded: 2011
• Focus: Pre-Seed, Seed, Series A
• Sectors: Technology, media
• Notable Investments: Instabug, Hawaya, Chefaa.

Global Ventures

Global Ventures invests in startups that are transforming industries in emerging markets. 

Their focus is broad, covering everything from FinTech to cybersecurity, and they have a strong track record of supporting high-growth companies in scaling across the region.

Key facts:

• Founded: 2018
• Focus: Series A, Series B, Series C
• Sectors: FinTech, EdTech, FoodTech, InsurTech, cybersecurity
• Notable Investments: Proximie, Moniepoint, Helium Health.

Emerging Trends Surrounding Startups in the UAE

The UAE’s entrepreneurial scene is evolving fast, due in no small part to the fact that the startup environment is shaped by a mix of government initiatives, investor appetite and cutting-edge technology.

Fintech is a dominant force, driven by increasing demand for digital banking, payments and blockchain solutions. This is helped by the UAE’s forward-thinking regulatory environment, particularly within DIFC and ADGM, which has created the ideal ground for financial innovation. 

Meanwhile, health tech is on the rise, with startups using AI and big data to revolutionise healthcare delivery. 

The government’s push toward sustainability is also driving interest in clean energy and climate tech, with startups tackling everything from water conservation to carbon capture.

Beyond sector trends, Web3 and blockchain startups continue to attract attention, especially with Dubai positioning itself as a global crypto hub. 

AI-powered startups are booming, too, with applications spanning logistics, cybersecurity and smart cities. 

Government-backed initiatives like Hub71, DIFC Innovation Hub and Dubai Future Foundation are playing a big role in shaping the UAE’s startup ecosystem. 

And for established startups, venture capital is maturing. Larger funding rounds are taking place and international investors are showing more interest in the region. 

Challenges for UAE Startups

The UAE has built a thriving startup ecosystem, but establishing your business here is not without its challenges. 

Early-stage funding can still be tricky, especially for founders without strong regional connections. While the UAE has plenty of venture capital for high-growth startups, pre-seed and seed funding is more competitive. 

Many investors prefer to back proven business models with traction rather than riskier early-stage ventures.

Regulation can also be a roadblock. While the UAE has made huge strides in creating a business-friendly environment, setting up a company in the UAE isn’t always straightforward. 

Depending on the sector, licensing requirements can be complex, and navigating free zones versus mainland regulations adds another layer of decision-making.

The cost of doing business is also worth considering. Dubai and Abu Dhabi are expensive cities. Office space, salaries and living costs can quickly add up. 

Unlike other emerging markets, the UAE doesn’t offer a low-cost advantage, so startups need to secure enough capital to keep their operations going.

Talent acquisition is another challenge. While the UAE attracts top international talent, finding and retaining the right people can be expensive. 

The country relies heavily on expats, and visa policies can add extra administrative hurdles, especially for startups looking to hire niche skill sets.

Getting Residency in the UAE

Another unique advantage of the UAE as a business base is that it offers multiple residency options. 

The two most common routes are through real estate investment or company formation, both of which offer renewable visas with minimal physical presence requirements.

Setting up a free zone company is one of the fastest and most flexible ways to secure residency. 

Free zones allow for 100% foreign ownership, 0% corporate tax (for qualifying businesses) and the ability to operate without a physical office. Once the company is established, founders can apply for a two-year renewable visa.

For investors, the real estate route offers a simple way to gain residency. 

Purchasing a property worth at least 750,000 AED (around US$204,000) grants a two-year visa, while a 2 million AED (around US$544,000) investment qualifies for a 10-year Golden Visa. 

The Golden Visa is especially appealing as it doesn’t require a local sponsor and provides long-term stability.

Startup Funding in the UAE: FAQs

Raising UAE Venture Capital

The UAE has positioned itself as a global startup powerhouse. 

The country offers unmatched access to capital, top-tier infrastructure and a gateway to fast-growing markets across the Middle East, Africa and Asia. 

With strong government support and a thriving innovation ecosystem, it’s an ideal destination for entrepreneurs and investors.

While challenges around regulation and high operational costs exist, the opportunities far outweigh the hurdles for those with the right business strategy. 

Whether you’re an early-stage founder after funding or a VC looking for the next big thing, the UAE offers an ecosystem designed for high growth and scalability. However, you may need help accessing it, as moving your business to a new country is never easy. We can help.

At Nomad Capitalist, we help entrepreneurs and investors navigate global opportunities, ensuring they find the best markets to launch and scale their ventures. 

If the UAE is on your radar, we can guide you through the process of setting up and securing funding. To make the Emirates your next big success story, get in touch.