View of the Dubai marina. Photo credit: boule13 / 123RF.
The wealthy Gulf city of Dubai has long been viewed as a hub of business and commerce in the wider Middle East region. Nestled in an area that’s been wrecked by war, conflict, and political turmoil, the desert oasis has managed to cultivate a glamorous image as a city with pristine infrastructure, debaucherous nightlife, and delectable cuisine.
It attracts a combination of wealthy businesspeople looking for a central hub, as well as highly-educated talent from across the world to help these companies grow – much like Singapore.
But if Dubai wants to continue its dizzying pace of growth, it needs to constantly reinvent itself and maintain its competitive edge. Regional threats – such as from Doha, Kuwait, and even Riyadh – aren’t entirely out of the question.
Qatar alone has US$335 billion under assets via its sovereign wealth fund. Saudi Arabia recently ploughed US$3.5 billion into Uber and wants to continue investing in tech startups. Kuwait is rumored to be on the threshold of launching a US$7 billion fund for small and medium businesses. They’re all armed with a tremendous amount of oil and gas revenue, while Dubai has very little.
One of the ways it’s doing so is through the Dubai Future Foundation (DFF) – an umbrella of entities that’s tasked with transforming Dubai as one of the key players in the knowledge economy.
The future is within reach
Within the ambit of the DFF is the Dubai Future Accelerators (DFA) – an ambitious program to pair the world’s top startups with government bodies in Dubai. The goal is to solve futuristic challenges envisioned by cities around the globe.
For example, one of the goals of the Dubai Police is to improve policing across the city through the extensive use of drones. They’re also trying to glean data for better crime prediction. DFA plans to pair them up with companies working on similar products. If accepted into the program, these companies will enjoy free office space, accommodation, and mentorship for 12 weeks.
Photo credit: Maher Najm.
Other wings of the government have their own priorities. The roads and transportation authority wants to develop autonomous public transport options, the municipality wants to reduce waste by 75 percent, and the immigration department wants to use AI to clamp down on illegal overstays.
So there’s a real chance of signing multi-million dollar contracts with the government if both parties feel they can work together.
“Dubai 1.0 was all about trade and pearls. Then came 2.0, which was about real estate, buildings, and infrastructure. Now Dubai is moving to a 3.0 phase, which targets a knowledge-based economy,” says Vera Futorjanski, head of communications at DFF.
The DFA is now in its second batch of incubated companies. In the first batch it accepted 30 applicants out of a total of over 2,000. Nineteen of those went on to sign contracts with the Dubai government, worth a total of US$33.5 million.
Some of these startups were Darkmatter – a cybersecurity firm that inked a deal with the Dubai Police, Pixelbug – a virtual reality company that’s now working with the Dubai Knowledge and Human Development Authority, and Medativ, which 3D prints anatomical models of the human body and is collaborating with the Dubai Health Authority.
“This is really not to make money at all. Especially with the accelerator. The Dubai Government doesn’t take any equity [for the companies accepted into the program],” she adds. “We tell the world: what are the future challenges? If you are a company or a startup that has what it takes to meet these challenges please apply.”
The DFF has also managed to snare some high-profile companies. In October, Hyperloop One announced it would build its first system made specifically for cargo at the Jebel Ali port in Dubai.
That’s the largest port in the Middle East and the 9th largest worldwide.
And that’s not all. The DFF also has a US$275 million fund to invest in startups. That’ll operate independently of the DFA but also look to invest in technologies of the future, such as those in energy, healthcare, and education.
The announcement comes after more than a billion dollars of venture capital flowed into Dubai-headquartered startups in 2016 – the highest it’s ever been. In the same year, the city welcomed two new unicorns – ecommerce marketplace Souq and transportation app Careem.
“45 years ago, there were no paved roads in Dubai. Now, in five years, they’re planning on sending a mission to Mars. There are not many cities in the world that can say that,” exclaims Vera. “While we don’t want to replace Silicon Valley, we definitely want to establish an innovation hub.”
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