May 28, 2025 | Industry Insights                 

Countless ambitious entrepreneurs have chosen the Gulf Cooperation Council (GCC) as the place to bring their visions to reality. Indeed, through future-oriented national agendas and geopolitics geared toward embracing innovation, the GCC has become increasingly attractive to startup companies, empowering entrepreneurs to nurture their skills, network with experts, and find the resources necessary to thrive. Perceiving small businesses as “engines of job creation and innovation,” leaders in the GCC have empowered entrepreneurs to leverage the region’s technological resources, focus on sustainability, and strengthen daring national agendas—establishing the GCC as a veritable startup hub (World Economic Forum, 2024).

Startup Momentum in the GCC

              The GCC’s welcoming environment for startups is underscored by a surge of investments that has enabled locally based ventures to accelerate their growth and expand their reach. In 2024, for instance, the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) accounted for nearly 60% of the US$3.2 billion raised by startups across the broader Middle East and North Africa region (Entrepreneur.com, 2024). According to an Arab News article (2025), these investments are contributing a significant amount of income and growth to a myriad of varied sectors—including fintech, e-commerce, healthcare, and sustainability.  

Why Startups Are Choosing the GCC

              Countries across the GCC have introduced a range of initiatives that make the region especially attractive to startups. In Bahrain and the UAE, for instance, regulatory sandboxes have empowered startups to innovate in controlled, low-risk environments. Additionally, free zones, like Dubai Internet City, offer financial incentives that allow tax-free operations and 100% foreign ownership to startups (Grudva.com, 2025). Moreover, there is an increased focus on investments in innovative Gulf-based companies. In the KSA, for example, there is a heightened focus on emerging projects and industries based in the kingdom (World Economic Forum, 2024).  

Flexible HR Solutions for Fast-Growing Startups

              As startups in the GCC scale rapidly, many face challenges in building compliant HR structures while staying agile. Fisher’s Contract Staffing solutions enable startups to access skilled experts for short-term projects, allowing for rapid expansion without the long-term commitments of full-time hires. This is especially valuable in early-stage companies navigating fluctuating workloads and evolving business models. At the same time, ensuring compliance with complex and varied labor laws across the region can be overwhelming, especially for budding companies. Partnering with an expert HR provider like Fisher enables startups to stay focused on growth while outsourcing essential yet complex functions like regulatory compliance and workforce planning.               With the right HR partner, startups in the GCC can scale boldly, compliantly, and with confidence—enabling the GCC to reach new, uncharted heights.

  El-Shaeri, N. (2025, March 15). Saudi Arabia sees surge in startup investments amid economic diversification push. Arab News. https://www.arabnews.com/node/2593728/business-economy
Grudva Business Consulting. (2025, January 9). How the GCC startup ecosystem stands out from the rest of the world. https://grudva.com/2025/01/09/how-the-gcc-startup-ecosystem-stands-out-from-the-rest-of-the-world/
Sharif, R. (2024, January 22). The state of play and the road ahead for startups and entrepreneurs in the Middle East. Entrepreneur Middle East. https://www.entrepreneur.com/en-ae/entrepreneurs/the-state-of-play-and-the-road-ahead-for-startups-and/468556
World Economic Forum. (2024, December 18). 5 reasons small businesses and startups are thriving in the Gulf. https://www.weforum.org/stories/2024/12/5-reasons-small-businesses-and-startups-are-thriving-in-the-gulf/