Abu Dhabi continues to attract startup founders despite war

Abu Dhabi’s entrepreneurial hub Hub71, backed by sovereign wealth fund Mubadala Investment Company, drew 27 international startups into its most recent year-long program despite regional conflict that rattled markets. The program offered participating founders cash and investor introductions in exchange for the option of future equity; all 27 companies are based outside the UAE and, organisers say, not one has dropped out amid fallout from the Iran war.

“Investors basically ghosted,” said one founder developing AI for the energy industry, who asked not to be identified, describing the immediate impact of the war on his pending financing. He added that regional backers have resumed contact in recent weeks and he now expects to close a $5 million round in September.

Organisers had braced for a subdued annual gathering for the seven-year-old Hub71, but the event drew hundreds of attendees — entrepreneurs, investors, academics and corporate representatives — and a decidedly upbeat atmosphere, complete with poke bowls and mango popsicles. One founder attended wearing a T-shirt reading that he was fundraising and “accepting free shawarma,” a detail cited by the event reporter as emblematic of the day’s energy.

Hub71’s CEO Ahmad Ali Alwan framed the hub’s progress in investor-education terms, saying Abu Dhabi has helped investors “expand their horizons beyond San Francisco.” That international orientation is reflected in Hub71’s partnerships: some 50 family offices from the Middle East have linked with the hub, seeking both potential investments and innovations that might benefit their broader portfolios.

Startups recruited into Hub71’s programme target a range of regional priorities — financial inclusion, food security and longevity — areas central to the UAE’s strategy to redress technology import dependency by building more capabilities domestically. The timing of new deals has been uneven: while some entrepreneurs reported silence from investors in the immediate aftermath of the conflict, conversations have begun to restart, and a handful of financings are expected to close later in the year.

• Programme intake: 27 startups, all from outside the UAE
• Offer: cash and investor introductions in exchange for option on future equity
• Investor engagement: about 50 Middle East family offices partnered with Hub71
• Recent performance: Hub71-based startups raised $599 million and generated $176 million in revenue in 2025 (reported by Fast Company Middle East)

The wider Gulf venture ecosystem has shown resilience even as global venture funding has contracted. While a comprehensive picture of the war’s impact on company valuations and funding flows is still emerging, Hub71’s event and its intact cohort suggest a degree of confidence among founders and regional investors.

Looking ahead, organizers and founders are watching the coming months for follow-through from tentative investor re-engagement. If anticipated rounds like the energy-focused founder’s $5 million close in September materialize, they could signal that regional capital is returning to startups affected by geopolitical disruption. For now, Hub71’s mix of international founders, family office ties and recent fundraising and revenue figures point to Abu Dhabi maintaining momentum as it seeks to cultivate a more locally built technology sector.