UAE Venture Capital Set to Focus on Supply Chains and Top Talent

Supply chains in the Middle East are emerging as the next major opportunity for venture capital investors, particularly as the Iran war concludes, according to the founder of Dubai's Global Ventures. Noor Sweid stated that the advancement of emerging technology, such as artificial intelligence, will drive manufacturing, fourth-party logistics, localisation, and other sectors, drawing increased investment.

"Supply chains started to be disrupted a lot with Covid ... and the region's always been leapfrogging," she told The National in Dubai on Thursday during the launch of a report tracking the UAE's venture capital journey over the past decade. The core components of supply chains "have drastically changed in the past four, five years – and that accelerates global supply chains even more," she added.

A 2023 study by Global Ventures indicated that start-ups play an "important role" in shaping the future of supply chains, noting they have only been "scratching the surface." Ms Sweid emphasized that "venture capital is expected to remain strong amid, and well beyond, the conflict."

Meanwhile, talent for small companies and start-ups is projected to expand in the UAE, supported by a business-friendly framework offering capital access, infrastructure, and incentives. Regulations in the UAE are "very founder-focused to ensure that people can build companies ... so when founders go to build with the regulator on their side, they're able to scale faster," Ms Sweid noted. "Talent and opportunity are what attracts capital, and that will continue to accelerate."

Venture capital involves investors providing funding to young entrepreneurs, start-ups, and small businesses in exchange for ownership stakes, sparing owners from bank loan profit payments while allowing investors to target high-growth enterprises. This mechanism is vital in the UAE, where small and medium-size enterprises and start-ups represent over 90 per cent of businesses, per government data.

Magnitt reported that venture capital funding in the Emirates surged 47 per cent year-on-year to $419 million in the first quarter of 2026, marking a record for the period, with international investors leading participation. Key venture capital providers in the UAE include Beco Capital, ADQ-backed Further Ventures, Middle East Venture Partners, and sovereign wealth fund Mubadala. Support organizations feature Abu Dhabi Startups, Hub71, Dubai Future Accelerators, Dubai SME, the Dubai Future District Fund, and Dubai Internet City's in5.

Additionally, the UAE government recently extended corporate tax relief for small businesses until 2029, a policy business owners and analysts believe will assist entrepreneurs in navigating regional and global challenges. Abdulla bin Touq, UAE Minister of Economy and Tourism, stated in the Global Ventures report that regional geopolitical developments sent ripples through markets, yet "moments like these offer an opportunity to reflect on our foundations and assess our resilience." He added, "For the venture system in the UAE, this period has underscored the depth of what the region has built."