Insights: Why the UAE is a premier hub for cybersecurity startups

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The UAE is increasingly recognised as a prominent startup and entrepreneurship center, drawing worldwide attention with its thriving environment. Its unique geography, state-of-the-art infrastructure, and pro-business regulations have fostered an ecosystem that thrives on innovation.

The surge of interest in the UAE’s cybersecurity sector has reached unprecedented levels.

According to Mordor Intelligence, the UAE cybersecurity market was valued at approximately $1.5bn in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 12.7 per cent from 2023 to 2028.

The rapid digital transformation in the UAE and across the Middle East is a driving force behind this growth. The country boasts one of the highest smartphone adoption rates globally, currently at 97.6 per cent.

This digital-first approach has led to an increased demand for robust cybersecurity solutions.

Support for the cybersecurity sector

Government support plays a crucial role in this burgeoning market. The National Cybersecurity Strategy exemplifies the UAE’s commitment to fostering a conducive environment for cybersecurity ventures. The UAE ranked 5th globally in the Global Cybersecurity Index 2020, underscoring the effectiveness of these initiatives.

The investment climate in the UAE is equally compelling. A recent survey by PwC revealed that 77 per cent of Middle Eastern organisations plan to increase their cybersecurity budgets for 2024. This reflects a strong confidence in the local cybersecurity ecosystem.

Innovation in the UAE is remarkable, with companies leveraging new technologies such as blockchain and artificial intelligence to develop advanced security solutions.

The UAE’s AI policy aims to position the nation as a global leader in the field by 2031, which is expected to significantly impact cybersecurity.

However, challenges remain. A staggering 71 per cent of organisations in the UAE reported experiencing at least one ransomware attack in 2022. Nonetheless, the collaborative spirit within the cybersecurity community has fostered partnerships among competitors, enabling knowledge and resource sharing to stay ahead of threats.

Looking forward, demand for cybersecurity solutions is projected to continue its upward trajectory. IDC predicts that spending on security products and services in the Middle East and Africa will grow 10.3 per cent year-on-year in 2024, reaching $6.2bn.

In summary, the UAE presents a compelling opportunity for cybersecurity entrepreneurs.

With a growing market, supportive ecosystem  and a vision for the future, the UAE is not just a destination for cybersecurity ventures; it serves as a launchpad for the future of digital security. The outlook for this sector is brighter than ever.

The writer is the founder of Smart Zone.