Dubai’s digital economy and startup ecosystem has attracted AED1 billion ($272 million) in European investment over the past four years, the head of the emirate’s main business organisation said, highlighting growing confidence in the Gulf financial hub’s technology sector.
The investment flow demonstrates “strong and sustained momentum alongside growing global confidence in Dubai’s advanced digital ecosystem,” Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers, exclusively told Arabian Business.
The figure underscores the city’s ascent as a regional technology hub as it seeks to diversify its economy away from oil and position itself as a bridge between Europe, Asia and Africa for digital businesses.
The emirate has also seen rapid growth in its startup sector, with the Dubai Chamber of Digital Economy supporting the establishment and expansion of 127 startups in the first quarter of 2025 alone – a 135 per cent increase compared to the same period last year, Lootah said.
“This significant capital inflow underlines Dubai’s appeal as a preferred destination for digital companies and investors from Europe and beyond,” he said on the sidelines of the inaugural GITEX Europe technology exhibition in Berlin last week.
The investment activity aligns with Dubai’s Economic Agenda (D33), which aims to double the size of the emirate’s economy by 2033 and establish it amongst the top three global cities for business and livability.
The city has been actively courting European technology companies and investors as part of its broader strategy to build a knowledge-based economy. The emirate offers foreign investors 100 per cent business ownership, no personal income tax, and streamlined regulatory processes.
Lootah said Dubai’s digital business environment offers “world-class technology infrastructure, innovation-friendly regulations, and a dedicated ecosystem to empower digital startups.”
The Dubai Chamber of Digital Economy organised four specialised events in the first quarter aimed at empowering startups and developing local talent, whilst training programmes attracted 729 participants focused on artificial intelligence, data analytics and digital transformation skills.
“These efforts come as part of a wider strategy to equip the workforce with the expertise needed to meet the evolving demands of the digital economy,” Lootah said.
The emirate is promoting its upcoming Expand North Star event in October, which it describes as the largest global gathering of startups and investors, as it seeks to attract more European participation.
GITEX Europe, which ran from May 21-23 in Berlin, marked the first European edition of Dubai’s flagship technology exhibition as the emirate extends its influence in global technology markets.
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