Tariq Bin Hendi, senior partner at Global Ventures - interview

You have held senior roles at G42 and ADIO prior to this role. You have also worked with Emirates NBD, Mubadala and Citibank. What are the key steps local and international companies in the UAE have taken to keep abreast of the evolving times? What role has the UAE government played in this?
The UAE has recognized the economic opportunities that are now before us and the changes that it needs to make to seize them. Both local and international businesses embrace the UAE as a place to invest and do business. In particular, digitalization is fostering an ecosystem that supports emerging startups in fintech, agritech, and other sectors. Moreover, it is revitalizing existing businesses – providing a leapfrog opportunity for the UAE, and MENA more generally, to forge ahead and lead global innovation.

We have been talking a lot about diversification and moving away from an oil-based economy. Five years from now, which key sectors do you see contributing most to a non-oil-dependent economy like the UAE?
There are other key sectors that are well established in the UAE outside the energy industry, including the finance, property development and tourism sectors. These sectors continue to expand and lead innovation. Despite obstacles to growth, such as the recent pandemic, the UAE as a destination to live, work and play remains strong. Hence, it became the world’s second-highest relocation destination for high-net-worth individuals, attracting talent, investment, and additional employment. An instrumental factor propelling this growth has been the recognition of the UAE as a prominent center for innovation among investors and entrepreneurs. There has been an increase in the number of startups — especially in fintech, agritech and healthtech in the UAE. Those startups can scale across continents and the world. In fact, entrepreneurship is a huge force of job creation in emerging markets. Its prevalence is 25 percent higher than in places like the U.S., thereby creating more employment opportunities.

What role do you see sectors such as fintech and agritech play in a diversified economy?
When people think of fintech and agritech it tends to be in the practical outcomes of speed, security and ease-of-use that digitalization brings to managing operations in these sectors. However, the real bonus of digitalization is how it opens up opportunities for previously unmet needs. Thus, it expands market access for consumers and producers, equipping people with the tools to build a new prosperous future.

How is the current venture capital environment in the UAE and GCC compared to the rest of the world, especially the West which has been tackling a subdued economy for the last 6-8 quarters now? What does the 2024 outlook look like?
Venture capital in the UAE has been gaining momentum year-on-year, peaking at $3 billion across the region in 2022. The UAE alone received $1.2 billion from international investors. This emphasizes the country’s justified status as a rising global hub. In a recent Pitchbook analysis, Dubai secured the top position in a global ranking of the fastest-growing VC ecosystems. Therefore, it’s no surprise that most regional deals occurred within the UAE, with 33 percent of deals closed between Q1-Q3 2023 – showing the growing potential of home-grown companies in the larger, global technology landscape.

Have the UAE’s recent trade deals changed the trajectories of VC firms in the region? Are we seeing an increasing interest from overseas startups and companies who want to come into the region?
The UAE has been actively pursuing trade agreements that expand markets for all parties involved, improving its reputation as a global free-trading hub. Although it’s premature to confirm a definitive trend of increased business creation, investment and deal-making, the initial figures are indeed promising. The 2022 FTA with India removed 80 percent of tariffs on goods between the two countries. It will also eventually eliminate them within 10 years. The deal covers service sectors and intellectual property while opening up opportunities for Indian investors. Moreover, it provides easier access to skilled Indian professionals to an anticipated 140,000 new jobs.