The United Arab Emirates (UAE) has expressed a keen interest in collaborating with Nigeria to further develop the latter’s burgeoning tech startup ecosystem. At the ongoing GITEX Global event in Dubai, the Chief Executive of the Dubai Future Foundation, Khalfan Belhoul, emphasized the significance of fostering innovation and establishing strategic partnerships to stimulate growth in the digital economy. Belhoul remarked on Nigeria’s impressive entrepreneurial spirit, noting the existence of numerous inventions and the potential for further advancements. He highlighted that meaningful conversations are essential to facilitate technology development between the two nations, underscoring the UAE’s readiness to engage in collaborative ventures.
Recognizing Nigeria’s status as a pivotal player in Africa’s digital transformation, Belhoul acknowledged the country’s expanding startup scene, which has already witnessed some companies venturing into the UAE market. With a rich tech landscape characterized by emerging startups, Nigeria has garnered considerable investment in sectors like fintech, e-commerce, healthtech, agritech, and edtech. Lagos, in particular, has developed into a central hub for over 400 startups. This flourishing environment is supported by data indicating that Nigerian startups attracted 35 percent of the total $466 million funding in Africa during the first quarter of 2024, encompassing equity, debt, and grants.
The financial success of Nigerian startups is exemplified by notable companies like Moove, a Transport Tech startup, which accounted for a substantial portion of the funding received in early 2024. Reports reveal that Moove secured two-thirds of the total funding directed to Nigeria during that period. Additionally, data from ‘Africa: The Big Deal’ highlights that Nigerian startups have consistently captured the largest share of funding in Africa over the last five years, representing 29 percent of the total $15 billion invested across the continent from 2019 to 2023. This trend underscores Nigeria’s strategic position within the African tech landscape as it continues to evolve rapidly.
In light of the migration of African talent to Dubai, Belhoul highlighted the importance of dedicated investment in research and development (R&D) and talent development. He stressed that fostering these areas is essential for ensuring long-term sustainability and competitiveness within Nigeria’s tech startup ecosystem. By prioritizing R&D, the country can enhance its capabilities to innovate and lead in the digital economy, ultimately enabling startups to thrive and evolve in a challenging global environment. This focus on developing human capital and technological infrastructure is vital for maximizing the potential of Nigeria’s entrepreneurial ventures.
Furthermore, the UAE’s willingness to collaborate with Nigeria aligns with its broader ambitions to establish itself as a global innovation hub. By leveraging its advanced infrastructure and business-friendly regulatory framework, the UAE aims to attract entrepreneurs and investors from around the world. This alignment of interests positions both nations to capitalize on the opportunities presented by the growing tech landscape, with the UAE serving as a launchpad for Nigerian startups seeking to expand their reach into international markets. Such partnerships could pave the way for sharing resources, expertise, and knowledge that would benefit both countries in the competitive digital economy.
GITEX Global, being the world’s largest and most trusted tech and startup event, facilitates these interactions and collaborations among stakeholders in the tech ecosystem. Organized by KAOUN International, the event runs from October 13 to 18, 2024, serving as a focal point for discussions on innovation, investment, and technology development. This platform not only showcases the capabilities of participating startups but also fosters networking opportunities that can lead to tangible partnerships. The dialogue initiated at GITEX outlines a promising future for both the UAE and Nigeria as they strive to harness the power of technology and innovation to drive economic growth and transformation.
