The California based start-up accelerator Plug and Play Tech Center Abu Dhabi Global Market (ADGM), Etihad Airways and the Department of Culture and Tourism are coming together for the first time to augment the Hospitality and Tourism sector of Abu Dhabi.
Plug And Play Tech Center And Their Role
Plug and Play Tech Center is a forerunner in boosting start-ups and is given credit for establishing PayPal and SoundHound as its portfolio companies. Their Travel and Hospitality Acceleration scaffold was established in 2016 and since then they have been partnering up with different airline companies to further innovate the travel sector in the 3rd Quarter of 2018, it had partnered up with the ADGM to boost the Financial Tech Market by creating a physical hub for fin-tech start-ups. The CEO at the Fin Tech Abu Dhabi 2017 Summit also stated that several portfolio companies expressed their desire to set up businesses in the middle east and to introduce their technologies to the banking sector as well as establish a technical team to support the same.
This undertaking is set to plug into ADGM’s current endeavours to make the competition more attractive in the UAE as well as Abu Dhabi and is especially looking to enhance startups in the tourism sector and other key industrial sectors.
The growth potential for startups in Abu Dhabi is looking really bright as there is no need for equity to be given to Plug and Play and all the start-ups participating would be given scope to fund itself from Plug and Play’s own Venture Capital Network, as well as have access to its networking events and training programs. Miral, the company behind the famous Yas Islands, as well as Ferrari World are said to participate in the programme.
Mubadala Investment Company, in turn, has also teamed up with Microsoft and Soft Bank Vision Fund who have said that two more accelerators Starburst and Techstars will at the end of the year be in place to augment upcoming startups who will be looking to bring global leaders as well as guidance based 12-week programs. These accelerators are looking to remove regulatory barriers that are being endured by the new startups and to improve the growth rate for these startups in every facet of their business requirements.
Why it is a Good Time To Invest
The tourism at the moment accounts for a staggering 5.4 per cent of the UAE’s GDP. It is estimated to be at least the same for the next few years. More than 2 million tourists have visited Abu Dhabi in 2018 and the number only seems to increase by the years. Moreover, the regions of the Middle East and North Africa are estimated to have a significant rise in tourism where the numbers of tourists are expected to be over 195 Million by the year 2030 because of which new Leisure and Hotel Businesses are already underway in this region to keep up with the same.
Abu Dhabi has already established itself as one of the best business regions in the UAE, is the capital of the UAE has only made it an ideal destination for setting up a business.
With the establishment of free zones, the technicalities are further reduced as there won’t be a need for local sponsors as one will be able to own the business fully without partners. The additional tax benefits and complete repatriation of Capital and Profits will involve minimal risk and only add to the future of the Business.
When Is Plug And Play’s Programme Estimated To Begin
The Innovation Acceleration Project is expected to start in the third quarter of 2019. Startups from the GCC as well as all over the world are expected to be a part of it. This would be a perfect time to set up a Luxury Resort or a Hotel in Abu Dhabi.
Looking to Join in?
If you wish to start a Hospitality Business in Abu Dhabi or if you wish to expand your already established Hospitality Business to Abu Dhabi then our team at Commitbiz are experts when it comes to advising you and helping you in the same. Contact us whenever you need to and we’d provide you with all the necessities.