Abu Dhabi Entrepreneurial Ecosystem Index 2019/2020 Report (Khalifa Fund for Enterprise Development)

Summary

• By the end of 2020, Khalifa Fund activated 1,163 loans valued at AED 1.32 billion since inception.p.7
• Oil GDP contributed 58.3% of Abu Dhabi's total GDP at current prices based on 2018 and 2019 Q1 and Q2 Reports.p.12
• SMEs and start-ups account for 98% of all businesses in Abu Dhabi and contribute 44% to its non-oil GDP.p.13
• Physical Infrastructure scored the highest among the 10 framework pillars with a score of 7.46 out of 10.p.40
• Financing scored as the weakest pillar in the Abu Dhabi entrepreneurial ecosystem with a score of 5.45 out of 10.p.40

Key insights

1. Physical infrastructure, culture, talent, networking, and demand are identified as the main strengths of Abu Dhabi's entrepreneurial ecosystem.p.10
2. Abu Dhabi holds 9% of global oil reserves and 5% of global gas reserves, funding three-quarters of the UAE federal budget.p.12
3. The GEM-ESI expert evaluation framework evaluated Abu Dhabi using 10 specific framework and systemic pillars.p.16
4. Personal networking among young and established business founders is high, but formal business network participation remains low.p.21
5. Mentoring is highlighted as a primary issue for the ecosystem, with low scores recorded for active advisory interactions.p.23
6. Informal investment scored low at 3.33 out of 10, showing entrepreneurship funding is largely reliant on public sector support.p.25
7. Local entrepreneurs report high satisfaction regarding the affordability and skill levels of the local talent pool.p.27
8. Bureaucracy and licensing requirements during founding remain key operational challenges for growing firms.p.33
9. An international comparison places Abu Dhabi third overall with an ESI score of 6.58, behind Montreal and Riyadh.p.41