• iAccel Gulf Business Incubator (iAccel GBI) initiative further reinforces Dubai’s position as a leading hub for talent in the start-up ecosystem and one of the top three global cities in line with the Dubai Economic Agenda, D33
• Expanding its geographical footprint, iAccel GBI in Dubai is India Accelerator’s first international office

 India Accelerator, India’s only seed accelerator programme with Global Accelerator Network, has launched the iAccel Gulf Business Incubator (iAccel GBI) in Dubai under Dubai SME, an agency of Dubai’s Department of Economy and Tourism (DET), further reinforcing the emirate’s position as a thriving hub for talent in the start-up ecosystem and status as one of the top global cities, in line with the Dubai Economic Agenda, D33.

Located in the Business Village in Deira and spanning 3,200 square feet, iAccel GBI will provide the best opportunities for start-up founders with their exceptional four-month hands-on programme to de-risk and grow the start-up. It will also offer several mentorship, networking, and fundraising opportunities.

His Excellency Abdul Baset Al Janahi, CEO of Dubai SME, commented: “Dubai today thrives with innovative capabilities and infrastructure, a testament to the unwavering efforts of our visionary leadership, whose goal is to consolidate Dubai’s position at the forefront of the world’s top economic cities. We are now focused on taking Dubai to the next level following the recent launch of the Dubai Economic Agenda, D33 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, offering unparalleled opportunities for both multinational corporations and national SMEs.

“The Dubai Business Incubation Network, certified by Dubai SME, offers expert guidance, encouragement, and best practices for business incubation programmes in Dubai.  Featuring 17 business incubators covering various sectors, supporting over 500 projects, we are excited to announce the latest addition to this network, iAccel Gulf Business Incubator. Their entry into the emirate will prove to be an invaluable resource for entrepreneurs and start-ups, especially those from India seeking global opportunities from Dubai, the regional gateway to the world,” he added.

Deepak Ahuja, CEO and Co-Founder of iAccel Gulf Business Incubator said: “iACCEL GBI will be the hub for incubation and acceleration for budding entrepreneurs in Dubai. We will work closely with all the stakeholders (government and private sector) to further strengthen the startup ecosystem in the UAE. As a part of this journey, we plan to engage & collaborate with universities & academia to catalyse innovation, and drive entrepreneurship. We also plan to provide market access to start-ups from India keen on going global, and Dubai seems to be an ideal destination. Dubai’s start-up ecosystem will benefit hugely from this new venture, supported by Dubai SME and backed by India Accelerator, which was awarded ‘Best Accelerator of India’ in 2021 by Start-up India after evaluating 60+ accelerators in India.” 

“India Accelerator relates to the growing importance of building a holistic ecosystem in the UAE and is in sync with the vision provided by the leadership of this amazing country. We are excited and looking forward to being an important part of this successful journey,” he added.

Ashish Bhatia, Founder of India Accelerator said: “As our first foray beyond India, we have built a state-of-the-art facility equipping young and entrepreneurial talent with knowledge, tools, and connections necessary to fuel their business growth. Dubai Government’s innovative ways to support and nurture the emirate’s flourishing start-up ecosystem make it a perfect place as we look forward to strengthening the India-UAE trade corridor.”

“At India Accelerator we have built different verticals that specialize in Healthtech, AI, Fintech, Agritech, Cybertech, D2C, Deeptech, among others as we intend to bring around 20+ of our existing startups from these verticals into Dubai in the next 12- 18 months. We are looking forward to bring futuristic and sustainable technology into Dubai,” he added.

COFE, an online coffee marketplace, has raised $15m in its Series B funding round, led by Saudi-focused venture capital fund, Waed Ventures, and including eWTP Arabia Capital, Al Imtiaz Investment Group, KISP Ventures, and Rasameel Investment Company. Founded in 2018 by Ali Al-Ebrahim, COFE currently operates in Kuwait, Saudi Arabia, UAE, and Egypt, and plans to expand internationally. The platform is already an important player in the $44bn MENA coffee market and will focus on expanding its e-commerce offering with the funds raised in this round. COFE’s recent partnership with the Saudi Coffee Company has attracted Saudi-based investors, while the global coffee market is predicted to grow at a CAGR of 7.5% between 2022-2027.

The musahama program, a local content growth initiative, aims to increase the proportion of local content spending in PIF’s domestic portfolio to 60 percent by the end of 2025. This program requires PIF companies to incorporate local content considerations into their design and procurement policies.

PIF’s suppliers development strategy aims to support the growth and development of local suppliers and vendors to meet the increasing needs of the fund portfolio companies. This year, the wealth fund plans to organize vendor boot camps for tier 2 and tier 3 contractors to help them qualify as vendors.

The private sector hub, the last initiative, provides a dedicated platform for sharing investment and supplier opportunities with the private sector. The hub is now operational, featuring over 100 opportunities, and will be continually updated and enhanced.

Jerry Todd, the head of the National Development Division at PIF, stated that both programs will ensure PIF and its portfolio companies incorporate local content considerations into their activities and operations. This approach will contribute to the development of local industries, the establishment of long-term supplier and vendor partnerships, the strengthening of local capabilities, the enhancement of the competitiveness of local players, the improvement of supply chain resilience, and the stimulation of innovation in the Saudi economy.

The three new initiatives align with PIF’s objective of increasing its contribution to local content to 60 percent by 2025, supporting the private sector in increasing its contribution to GDP by up to 65 percent by 2030, creating job opportunities, localizing technology, and driving technology and knowledge transfer in Saudi Arabia.

PIF launched these initiatives during its inaugural two-day private sector forum in Riyadh, which is attended by PIF executives, ministers, senior government officials, and representatives from 50 PIF portfolio companies, as well as over 4,000 private sector participants.

As Saudi Arabia aims to wean itself off its heavy reliance on oil revenues under Vision 2030, PIF is a crucial component of the kingdom’s economic reform initiative. The wealth fund is investing heavily in various sectors, such as sports, electric cars, and new cities, with the goal of accumulating assets worth $3 trillion by 2030.

Additionally, earlier this week, the wealth fund announced Riyadh Air, a new national airline in Saudi Arabia wholly owned by the fund. Riyadh Air is expected to contribute $20 billion to the Gulf state’s non-oil GDP growth and create over 200,000 jobs, both directly and indirectly. The new airline has ordered 39 Boeing 787 Dreamliners, with options for 33 more, as it aims to serve over 100 destinations worldwide by 2030.

SVB’s collapse sent shockwaves through global capital markets as fears of broader systemic risks in the financial systems gripped investors. The startup ecosystem and budding tech companies were especially impacted by the news given their strong reliance on lenders for funding. In an environment of rising interest rates, borrowing is becoming increasingly expensive, thereby making startups jittery and risk averse. The Middle East has emerged as a lucrative financial hub that houses a number of promising startups and tech companies. SVB was one of the chief lenders to these entities. Thus, the ripple effect of its collapse was felt by the stock markets in the MENA region, sending their respective banking sectors and indices lower. However, there is reason to believe that any detrimental impact arising from this event will be short-lived once the dust settles. In fact, officials from Kuwait’s central bank revealed their local lenders have very little exposure to SVB. For starters, the Gulf region has a substantial amount of liquidity and is not reliant on foreign lenders to support emerging businesses in the region. The commodity boom brought in a fresh influx of cash flows, adding to the coffers of the region’s largest sovereign funds that control over $3 trillion in assets. Thus, Gulf funds are pouring in billions of dollars into global deals, playing the role of funders and lenders to cash-strapped entities. SVB’s collapse presents an opportunity to scale up lending to firms in a volatile market as liquidity evaporates globally. Middle Eastern money is making its way into foreign markets. As of last year, the gulf region’s largest sovereign funds acquired over $28.6 billion worth of businesses outside the Middle East and Africa. That marks a 45% growth relative to 2021. Thus, the gulf region is relatively immune to the downfall of banks such as SVB.

Furthermore, the government is always providing impetus for startups and tech companies to thrive by creating a business-friendly regulatory environment. Owing to the inherent business and growth savvy nature of its leaders and businessmen, several family-owned businesses and corporations are investing heavily in startups, providing much-needed funding and expertise. Moreover, the MENA region offers a sturdy legal framework that protects startups in the event their lenders go bust. The courts permit affected entities to present their cases and seek recovery of lost funds. In extreme cases, the UAE government may also bail out struggling banks to protect the interests of businesses and startups with exposure to the bank. Nonetheless, SVB’s downfall has undoubtedly infused a degree of uncertainty and nervousness amongst venture capital-backed firms and the tech startup ecosystem. However, this initial jitteriness is likely to run out of steam given the adequate policies and mechanisms in place to safeguard the interests of entrepreneurs and investors alike. For instance, businesses facing compliance issues or high exposure to risky lenders may avail certain exemptions and incentives such as the Deposit Protection Scheme administered by the UAE Central Bank. Furthermore, a digital narrative storytelling hub called Blinx was recently launched, equipped with state-of-the-art metaverse studios and superior AI-based analytical software. This will provide a forum for startups to gain traction, swap stories, and build connections to help their businesses thrive. As a result, any economic repercussions arising from the unfortunate events are likely to be contained and short-lived within the Middle East.