Entrepreneurs from India, Europe, Africa, and the US are increasingly choosing Gulf cities like Dubai, Riyadh, and Doha to launch and grow their ventures/Representative Image

TL;DR: Founders of startups are increasingly moving away from Europe, Asia, Africa, and North America to the Gulf. The major draw factors are tax-free salaries, complete foreign ownership, and long-term residencyGovernment-facilitated accelerators, incubators, and sovereign funding provide a speedy route to expansion. Infrastructure, security, and family-friendly settings render the area attractive for founders and staff. Drawbacks are the cost of living, quotas for hiring, and changing regulatory landscapes but the push goes on.

Historically, would-be entrepreneurs flocked to the comfort of well-known centres such as Silicon Valley or London. But more and more, they’re flocking to Gulf cities instead, including Dubai, Abu Dhabi, Riyadh, Manama, and Doha. It’s no coincidence that this is happening, it’s the result of a deliberately crafted makeover of the Gulf as a global startup corridor.

Founder migration is in waves. Asians, Africans, and Middle Easterners are moving in large numbers to grow regionally. Western tech entrepreneurs, particularly in climate tech or AI, view the Gulf’s mega-projects (such as NEOM) as fertile ground to pilot and apply their solutions.To illustrate, many Indian startup groups have relocated to Dubai, attracted by ease of establishment, closeness to market, and facilitative policy environment. Dubai Chambers consequently registered more than 12,000 new non-Emirati businesses in 2024 alone.Egyptian startups faced with internal economic challenges such as a currency crash and legal ambiguity are also migrating to Saudi Arabia, attracted to stability and certainty of the Gulf’s frameworks.Fintech, healthtech, AI, logistics, climate-tech, and edtech founders get the most spotlight and favor. Gulf governments are coordinating startup targeting with national development plans and giga-projects.

The benefits bring realities:

Founders have to balance these considerations, but most tolerate the compromises for access to capital, residence, and scale.

The startup ecosystem in the Gulf is transforming through ordered specialisation:

This collaborative strategy forms a cohesive regional corridor and provides founders with multiple points of entry tied to sector strength.

Even with global investment slowdowns, the Gulf’s startup economy is on the rise. The region’s entrepreneurial pace is supported by sovereign capital, strategic intent, and a coherent ecosystem blueprint according to the 2025 Global Startup Ecosystem Report.Whether you’re an emerging founder, tech investor, or policy nerd, it is evident that the Gulf is no longer a fringe participant, it’s at the centre of the global startup narrative.

Q. What is driving startup founders to move to the Gulf?They are attracted by low or zero taxes, quick and agile company formation, venture funding access, long-term residency opportunities, and strategic access to growth markets in Africa, South Asia, and Central Asia.Q. Which nations are driving this movement?The UAE and Saudi Arabia are currently leading in securing founders. Bahrain and Qatar also have active startup hubs through less regulation and focused sectoral approach.Q. What type of assistance do governments provide to startups?From subsidised office space to founder grants and innovation hubs like Hub71 (UAE) and Monsha’at (Saudi), governments actively assist founders in scaling up their businesses at pace.Q. Which are some of the priority areas being targeted by Gulf countries?Fintech, AI, healthtech, climate-tech, logistics, and edtech are some of the priority areas. Startups linked to sustainability objectives and smart infrastructure are being supported the most.