UAE and India are startup hotbeds

The Startup India Summit saw young minds at their innovative best. If Tuesday's session in Dubai was about building relationships, the final day in Abu Dhabi saw startups put forth their ideas before potential investors. All entities agreed that India and the UAE continue to be hotbeds for startups.

In his opening remarks, Abu Dhabi Global Market registration authority CEO Dhaher bin Dhaher Al Mheiri welcomed more such initiatives to boost business.

"This is an exciting event. We support such initiatives as it adds great value to the UAE's vision. Such an event helps foster businesses. Startup is an area which will create more business in the region," Al Mheiri said.

Indian Ambassador to the UAE Navdeep Singh Suri said the Dubai session was a phenomenal success. "I am happy to see so many leading business houses and fund managers."

He noted the presence of the Abu Dhabi Investment Authority and Mubadala. "Your presence means a lot to the companies that have come here," Suri added.

Giving an investor's perspective, LuLu International Exchange managing director Adeeb Ahamed began his address with a quote from scientist Charles Darwin: "It's not the strongest of the species that will survive; it is the one that is most adaptable to change."

Ahamed spoke on a host of topics, including the current scenario for FinTech players, how to sustain and grow and what investors look at.

Ahamed said FinTech is a lucrative market to add to the portfolio of any investment house. He noted that the payments industry has seen great change in investments.

"The payment service industry with online payments, more specialised services and advancement in technology has been a great reason for all these changes to take place."

Ahamed said the currency market is changing radically with bitcoins and other virtual coins being adopted in the financial sector.

"FinTech romance in Silicon Valley and Europe is waning. This provides an opportunity for FinTech startups and innovators in emerging markets. India is the next landmark for FinTechs."

So, what does a FinTech investor look for? "All one thinks of is return on investments. The horizon we look for is one that gives returns in a few years."

Ahamed said he has seen many startups go through various stages of development. "I am constantly looking out for the next big headliner in the industry."

Ahamed said a host of startups have sprung up in the recent past in the UAE to provide innovative alternatives to traditional banks and services.

Looking at future requirements, he said: "Consumers need hassle-free transaction channels anytime, anywhere. The expansion of the FinTech ecosystem will help to serve those customers in a better way with electronic payment services. The landscape of the payment industry will be redefined by the entry of non-traditional providers."

He noted the need to streamline regulatory regimes and security systems to limit fraud and make competition fair. Ahamed highlighted the need of constantly improving technology.

Meanwhile, the vice-president of Indian Business and Professional Group (IBPC), Padmanabha Acharya, said the UAE has provided a strong ecosystem for startups through government support, low tax regime and other factors.

He said: "The UAE is a budding place for startups. Mubadala has announced $15 billion investment in SoftBank's Tech Fund. This will be a boost for all startups as SoftBank is expected to be one of the top investors in the next 10 years."

Acharya also pointed out that India is one of the fastest growing startup bases in the world.

On a special invite from the Indian ambassador, commerce students from the Abu Dhabi Indian School were part of the audience.

Source: Khaleej Times