Emirate offers a perfect investment environment for innovators and entrepreneurs from around the world, says Group CEO of TECOM
Dubai: The acquisition of Dubai-based start-up Careem by global transportation major Uber represents a new entrepreneurial and investment success story for the emirate.
Uber today announced that it has reached an agreement to acquire homegrown ride-hailing company Careem for $3.1 billion in a deal that reflects the global investment worthiness of Dubai’s technology start-ups. Under the transaction, Uber will acquire all of Careem’s mobility, delivery, and payments businesses across the greater Middle East region, ranging from Morocco to Pakistan, with major markets including Egypt, Jordan, Pakistan and Saudi Arabia.
Uber CEO Dara Khosrowshahi acknowledged Dubai’s emerging status as a global centre for entrepreneurship and innovation in his tweet following the announcement of the Careem acquisition: "Excited to announce our acquisition of @Careem, one of the Middle East’s greatest success stories. This is a testament to Dubai’s role as a global hub of innovation and entrepreneurship and we look forward to continuing our journey in the Middle East"
Malek Al Malek, Group CEO of TECOM Group said: “This is a new success story for Dubai, as the emirate offers a perfect investment environment for innovators and entrepreneurs from around the world to plan, implement and realise their creative projects. It is no surprise that Careem had its headquarters at Dubai Internet City, which is one of TECOM Group’s business communities that provides a nurturing ecosystem for innovation for entrepreneurs across corporations of various sizes, from multinationals to startups. At TECOM Group, our top priority has always been to provide the necessary supportive business offerings, enabling environment and integrated infrastructure, including smart services and solutions for investors to innovate, grow and expand into the wider region and the world.”
Malek Al Malek further said: “Uber’s acquisition of the Dubai-based transportation network is a testament to the successful vision of our wise leadership for developing a knowledge-based economy and to position Dubai and the UAE as one of the key destinations for global businesses. The region’s developed legislative system, state of the art infrastructure and agile investment environment provides a vibrant set-up for budding entrepreneurs and innovators. We look forward to more new projects being established in Dubai and to create an impact in the world of innovation, in line with the government’s strategies for diversifying Dubai’s economy.”
Following the close of the acquisition, Careem will become a wholly-owned subsidiary of Uber, preserving its brand. Careem co-founder and CEO Mudassir Sheikha will lead the Careem business, which will report to its own board made up of three representatives from Uber and two representatives from Careem. Careem and Uber will operate their respective regional services and independent brands.
Careem, is one of a host of homegrown companies across sectors that have leveraged the emirate’s exceptional entrepreneurial environment to grow rapidly and attract the investment interest of global companies. The success of companies like Careem is an example of the highly productive environment that Dubai’s innovation-driven economy offers ambitious entrepreneurs.
Founded by two ex-McKinsey & Company consultants, Careem was valued at about $1 billion in a 2016 funding round, making it one of the most valuable technology startups in the Middle East. Starting as an executive car service, Careem rapidly grew into a full-fledged ride-hailing operation with 30 million users across 15 countries. The company has seen a massive growth of 30% month-on-month.
Over the last decade, Dubai has steadily transformed itself into a technology and innovation hub with the strong impetus provided by both government and semi-government institutions, as well as the support of a host of incubators and accelerators Dubai’s technology industry is today closely watched by major VC funds in the US and Europe for new opportunities, with many prominent institutions having already invested here.
Dubai’s position as an ideal destination for global investors, its strategic geographic location and smooth access to emerging markets have been instrumental in its rise as a technology and innovation hub. Furthermore, Dubai’s commitment to open market policies and its ability to offer the infrastructure required to support the investment and growth of diverse companies, have encouraged investment, entrepreneurship and talent from across the world to flock to Dubai.
In addition, Dubai’ s diversified market, free zone incentives, ICT connectedness and status as an early adopter of new digital technologies have been instrumental to the success of entrepreneurial technology ventures like Careem.
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