Abu Dhabi’s state-backed startup ecosystem, Hub71, sharpens its focus on artificial intelligence and prepares to expand into the healthcare sector. The emirate accelerates its efforts to build a global tech hub which can attract entrepreneurs, capital and talent from around the world. Since its launch in 2019, Hub71 has grown into the fastest-expanding startup ecosystem in the Middle East, positioning itself as the Gulf’s answer to Silicon Valley.

Peter Abou Hachem, Head of Growth and Strategy at Hub71, said in an interview with Arabian Business that artificial intelligence is the organisation’s sharpest bet, having recently accepted 13 new AI startups, bringing them to around 50. The aim is to leverage Abu Dhabi’s strong infrastructure base in compute, energy and sovereign investments to help create the next “Open AI” out of the emirate. The companies come from around 40 countries.

The AI strategy is designed to cut across industries rather than focus on a single vertical. Peter Abou Hachem argues that artificial intelligence is a horizontal technology set to affect every aspect of life, from business to financial services and logistics. The sector has already shown tangible results in areas such as drug discovery and genomics. Additionally, healthcare and the life sciences are thriving intersections for AI, with startups utilising AI models to accelerate research and development in pharmaceuticals.

In line with Abu Dhabi government priorities, following AI, healthcare, climate tech, and digital assets, Hub71 will establish its next dedicated vertical, as the logic behind the clusters is to align with Abu Dhabi’s wider priorities.

Furthermore, Peter Abou Hachem resonates whenever you see the emirate building out infrastructure in a sector, whether it is food security or water. Abu Dhabi builds the startup ecosystem to match because startups will not come unless investors, customers, and a regulatory framework are already in place.

The approach reflects the emirate’s broader economic diversification plan. Abu Dhabi has invested heavily in research institutes, biotechnology, and healthcare infrastructure, making the city attractive for specialist talent through lifestyle incentives and residency schemes. For Hub71, the task is to convert those assets into a magnet for founders who can scale globally with the capital.

Hub71 is benefiting from global transformations. Inflexible regulations in traditional startup centres such as Hong Kong, the United Kingdom, and the United States have prompted some investors and companies to look for alternatives.

“Hub71 has grown into the fastest-expanding startup ecosystem in the Middle East, positioning itself as the Gulf’s answer to Silicon Valley”

Peter Abou Hachem specifies the example of blockchain and crypto firms, which migrated to Abu Dhabi in recent years after regulators in other markets cracked down. That shift helped Abu Dhabi establish itself as a leading jurisdiction for digital assets. Today, the same dynamic is now at play across technology more broadly. For example, the UK, once a magnet for entrepreneurs, has seen an outflow of wealth and talent as tax and political changes weigh on sentiment. Abu Dhabi has been able to capture a portion of that pipeline.

Geopolitical factors matter, but it is also about quality, notes Peter Abou Hachem. Singapore, the US, UK and Hong Kong are still where the best-in-class startups are, and that is where Hub71’s efforts are focused. The fact that Abu Dhabi has a clear and strict regulatory environment, thanks to Abu Dhabi’s International Financial Centre, makes the emirate an attractive spot for founders and funds alike.

To reduce reliance on geopolitical impacts, Hub71 has established cross-border programmes with over 12 countries, ensuring a steady deal flow from leading ecosystems. The startup is plugged into hubs and investors worldwide, which gives the hub first access to the best companies.

Six years after its launch, Hub71 now counts more than 370 startups in its community, which have generated AED 4.5 billion (€1 billion) in revenue and attracted billions in funding. Over 150 partners, ranging from venture capital firms to corporates and government entities, support the platform.

The model is designed to replicate the organic growth of Silicon Valley, where ecosystems are formed by bringing together the right people rather than focusing solely on scale. Hub71’s acceptance rate for new entrants remains low by design, with an emphasis on quality companies that can scale into billion-dollar businesses.

Peter Abou Hachem says their ecosystem grew in value by almost 30 per cent last year. Now, it’s about patience and maturity helping startups expand globally and produce multi-billion-dollar outcomes from Abu Dhabi.

The effort is part of the UAE capital’s long-term push to diversify away from hydrocarbons and create jobs in knowledge-based industries. By aligning its clusters with government-backed sectors such as healthcare, AI, climate, and digital assets, Hub71 is betting that Abu Dhabi can offer the infrastructure and capital that founders need, as well as the global connectivity that keeps them there.