
Startups in the GCC: A New Era for Entrepreneurship in the Gulf
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.
With the right HR partner, startups in the GCC can scale boldly, compliantly, and with confidence—enabling the GCC to reach new, uncharted heights.
References
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-economyGrudva 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/
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