Dubai and the UAE: Watching a Tech Hub Get Built in Real Time

I’ve been living in Dubai for three years now, and I need to tell you about something that’s happening here that most people outside the region don’t know about.

When I first moved here, I came for the practical reasons—zero income tax, good weather, decent timezone for working with Europe and Asia. I expected to work remotely with international clients and mostly ignore the local tech scene. That’s not what happened.

The Money Is Real

Let’s start with the numbers, because they matter.

In early 2024, Abu Dhabi launched MGX, an investment fund focused specifically on AI and advanced technology. Their stated target: manage over $100 billion in assets. They’re currently investing $8-10 billion annually in AI infrastructure and companies.

That’s not announcement money—that’s actual deployment. In January 2025, MGX put $7 billion into something called the Stargate Project alongside OpenAI, SoftBank, and Oracle. They’re building AI compute infrastructure at a scale that matters globally.

To put this in perspective: many countries don’t invest this much in their entire technology sectors. Abu Dhabi is writing checks this size for AI specifically.

Microsoft Bet Serious Money on G42

In April 2024, Microsoft invested $1.5 billion in G42, an Abu Dhabi-based AI company. Brad Smith, Microsoft’s Vice Chair, joined G42’s board of directors.

This wasn’t a courtesy investment or PR move. The partnership included something unusual: a formal agreement with both U.S. and UAE governments around secure AI development. The U.S. government approved export of advanced AI chips to a Microsoft-run facility here.

When Washington signs off on advanced chip exports and Microsoft puts that kind of money down, you pay attention.

G42 also partnered with OpenAI to deploy GPT models across financial services, energy, healthcare, and government in the region. Then in May 2025, G42 announced they’re building Stargate UAE—a 1-gigawatt compute cluster—with OpenAI, Oracle, NVIDIA, SoftBank, and Cisco. The first 200-megawatt cluster goes live in 2026.

These aren’t pilot projects. This is infrastructure investment at scale.

The Startup Infrastructure

Before moving here, I’d seen plenty of cities call themselves “tech hubs.” Usually it means some coworking spaces and maybe an accelerator. Dubai and Abu Dhabi are doing something different.

Hub71 in Abu Dhabi is their main tech accelerator. Their latest cohort (Cohort 17, selected in 2025) was chosen from over 2,000 global applications. These startups have collectively raised over $223 million—the largest funding total of any Hub71 cohort so far.

That’s not just local startups either. They’re from 12 different countries, which tells you the program has credibility beyond the region.

Hub71 runs specialized programs for AI (Hub71+ AI), Web3 (Hub71+ Digital Assets), and climate tech (Hub71+ ClimateTech). Most accelerators try to cover everything; they’re picking specific sectors and going deep.

In Dubai, there’s Area 2071, which charges AED 1,000 (about $270) annually for a commercial license. That’s less than most coworking spaces charge per month. The government is essentially subsidizing startups to set up here.

The Unicorn Situation

Dubai currently has nine unicorns. The UAE as a whole has 11. For context, that puts Dubai ahead of many cities with more established tech reputations.

Careem was the Middle East’s first unicorn (Uber acquired them for $3.1 billion). Kitopi hit unicorn status in 2021. Dubizzle Group in 2020.

The government’s stated goal under their D33 economic agenda: create 30 unicorns by 2033. Most governments don’t publicly commit to specific numbers like that.

What makes this plausible: tech investment jumped 145% this year to $313.5 million, and startup funding overall is on track to hit $2.5 billion this year. That’s not aspirational—that’s capital actively moving.

The Crypto Thing Is Real Too

While everyone’s been watching the AI investments, Dubai’s quietly become one of the world’s major crypto hubs. And unlike most places that claim to be “crypto-friendly,” they’ve actually built proper infrastructure for it.

In 2022, Dubai established VARA (Virtual Assets Regulatory Authority)—the world’s first independent regulator focused exclusively on crypto and virtual assets. Not a department within some other agency, an actual standalone regulator. That matters because it means they’re taking this seriously long-term.

The numbers back it up. Dubai has a 25.3% crypto ownership rate—one of the highest globally. Around 30 companies are now licensed by VARA, including names you’d recognize: Binance, Coinbase, Crypto.com, OKX. These aren’t just registrations; these are fully licensed operations.

In March 2025, MGX (the same fund pouring billions into AI) invested $2 billion in Binance—one of the largest investments in the crypto industry ever. Then in May 2025, the Dubai Department of Finance partnered with Crypto.com to let residents and businesses pay government fees in crypto. Not “we’re exploring this,” but actually implemented.

Hub71’s Web3 program (Hub71+ Digital Assets) is specifically focused on blockchain and crypto startups. They’re not treating this as a side project—it’s one of their three main verticals alongside AI and climate tech.

The tax situation helps too: zero personal income tax, zero capital gains tax on crypto for individuals. Corporate tax is 9% on profits over AED 375,000 ($102,000), but that’s it. Compare that to most Western countries and the difference is significant.

What I find interesting is that they’re not doing the “move fast and break things” approach. VARA updated their rulebook in May 2025 with stricter AML protocols and enhanced security requirements. They’re trying to build a regulated, sustainable crypto ecosystem, not a Wild West.

Whether that works long-term, we’ll see. But the infrastructure and capital are real.

What It Feels Like on the Ground

The Dubai tech scene is small enough that you see the same people at events, but growing fast enough that there are new faces every month. Most people I meet came here thinking it would be temporary and ended up staying because the opportunities were real.

The developer community is genuinely international. I’ve worked with engineers from India, Pakistan, Egypt, Lebanon, Poland, Ukraine, and the Philippines. Most worked in other major tech centers before coming here. The quality of talent surprised me.

What I wasn’t expecting: the pragmatism. There’s less startup theater here than in San Francisco or London. People are building actual businesses, not pitching slides. Less idealism, more execution.

The downside is that it still feels young. Not many second or third-time founders yet. The ecosystem is maybe 10 years behind Silicon Valley in experience depth. But that also means less entrenched thinking.

The Regulatory Reality

People always ask about government involvement, so let me address it directly.

Yes, there’s more government involvement here than in Western tech hubs. The government is actively investing in and promoting certain sectors—AI, fintech, blockchain. That creates opportunities, but it also means you’re building within a framework.

The AI partnerships with Microsoft and OpenAI required government-level agreements around responsible AI development. Whether that’s good or bad depends on what you’re building and your perspective.

If you’re working on something the government considers strategic (like AI infrastructure, fintech, blockchain), you’ll find support and potentially funding. If you’re building something outside their focus areas, you might find less institutional support than in a more laissez-faire environment.

Why Developers Should Care

From a practical standpoint, Dubai offers some interesting advantages:

Pay is competitive and tax-free. Not Silicon Valley salaries, but when you factor in zero income tax and lower cost of living than London or San Francisco, the math works out well.

The timezone (GMT+4) is genuinely useful. I can take calls with London clients at 9am and still catch meetings with Singapore or Hong Kong clients in the afternoon. You’re positioned to work with three major regions without brutal hours.

The AI investment means there’s actual work available beyond basic web development. I’ve seen legitimate opportunities for AI infrastructure work, machine learning applications, and projects that would be competitive anywhere.

Getting a visa and setting up a company is faster and less bureaucratic than most European countries.

The Things People Don’t Talk About

It’s not perfect. The tech scene is heavily weighted toward Abu Dhabi and Dubai. Other emirates barely participate.

There’s a brain drain issue—many talented people still view Dubai as a stepping stone to Silicon Valley or Europe rather than a destination. That’s slowly changing, but it’s real.

The summer is genuinely oppressive. July through September, you basically don’t go outside. Everyone says this, but until you experience 45°C+ with humidity, you don’t really get it.

And while the government is investing heavily in large-scale AI infrastructure, if you’re building a small AI startup, you benefit indirectly rather than directly.

Where This Goes

Based on what I’m seeing, Dubai and the UAE are becoming a legitimate third option for tech talent—not Silicon Valley, not London, but a real alternative with specific advantages.

The AI investments aren’t just about data centers. They’re creating an ecosystem where AI companies will want to have a presence. When you have that much compute capacity, infrastructure, and capital in one place, companies come.

The startup ecosystem will mature as more companies exit successfully and founders start second ventures. That’s already beginning.

The big question is whether the UAE develops its own tech culture or remains mainly a place where people come temporarily. My guess: somewhere in between—a hub that attracts global talent but develops its own approach.

The Numbers That Matter

Let me summarize the concrete facts:

AI & Infrastructure:

MGX: $100B+ target assets, $8-10B annual AI investment
Microsoft invested $1.5B in G42 (April 2024)
Stargate UAE: 1-gigawatt compute cluster, first phase 2026

Startups & Unicorns:

Hub71 Cohort 17: 2,000+ applications, $223M raised collectively
UAE unicorns: 11 total (9 in Dubai)
2025 (YTD): Tech investment $313.5M (+145%), startup funding on track for $2.5B
Government target: 30 unicorns by 2033

Crypto & Web3:

VARA: World’s first independent crypto regulator (established 2022)
25.3% crypto ownership rate in Dubai
~30 licensed crypto companies (Binance, Coinbase, Crypto.com, OKX)
MGX invested $2B in Binance (March 2025)
Dubai government accepts crypto payments (partnership with Crypto.com, May 2025)
Zero personal tax on crypto gains

These aren’t marketing numbers. They’re actual investments, actual projects, actual infrastructure being built.

The Reality Check

Dubai markets itself aggressively, and it’s easy to dismiss it as hype. I was skeptical too.

But after three years here, watching billions flow into AI infrastructure, seeing quality startups in programs like Hub71, and working with genuinely talented developers from around the world—I’ve changed my mind.

This isn’t just marketing. The Microsoft-OpenAI partnerships aren’t ceremonial. The startup funding isn’t vanity metrics. The AI compute clusters are real infrastructure being built.

Whether Dubai becomes “the next Silicon Valley” is the wrong question. It doesn’t need to be Silicon Valley. It just needs to be a place where you can build a tech company, access capital, hire talent, and scale. It’s getting there.

Nikita Sinenko is a Senior Ruby on Rails Engineer based in Dubai, UAE, working with startups and established companies across the Gulf region. He specializes in scalable web applications and AI integration.