Fostering Two-Way Collaboration to Drive Mutual Growth, Innovation, and Post-Pandemic Resilience in the Tech Ecosystems of the GCC and India
As the startup ecosystems in both the Gulf Cooperation Council (GCC) and India mature, the case for closer collaboration has never been stronger. While GCC sovereign wealth funds have increasingly invested in Indian startups, the focus has predominantly been one-sided, with MENA-based startups having limited presence in India. However, given their historical ties, booming digital economies, and tech ecosystems, there is an opportunity for deeper cooperation.
India has become a global leader in the digital economy, with world-class startup ecosystems in cities like Delhi, Hyderabad, and Bengaluru. The country is home to numerous unicorns, boasts the second-largest number of internet users globally, and ranks as the second-largest smartphone market.
The GCC is starting to take notice of India’s tech prowess. Investments by GCC sovereign wealth funds in Indian digital giants like Reliance Jio signify the Gulf’s bet on India’s digital future. Meanwhile, GCC-based startups like Lenskart are eyeing expansion into India via the Gulf.
In contrast, the MENA’s journey towards digital transformation began later. Post-Arab Spring, governments prioritized building entrepreneurship ecosystems, with the UAE leading as the region’s tech hub. However, competition among Arab cities for this title remains fierce.
The MENA, particularly the GCC, was quick to recognize India’s potential. Partnerships between NASSCOM and Dubai’s Internet City and Abu Dhabi Global Market’s support for Indian fintechs reflect this collaboration. Bahrain’s Economic Development Board has also set up offices in India to scout Indian fintechs.
To date, Indian startups have reaped the most benefits from GCC-India startup ecosystem convergence. The GCC has been a significant investor in Indian unicorns, while Indian startups have expanded into GCC markets. However, the flow of innovation has primarily been one-way.
To maximize the benefits of cross-ecosystem partnerships, the focus should shift to two-way collaborations. Both sides must establish connections that allow GCC startups to scale up in India and vice versa. This balanced approach is crucial for ensuring that emerging GCC startup ecosystems become hubs rather than mere spokes in the global entrepreneurship landscape.