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Resilience over retreat: How UAE startups weathered regional uncertainty
With founders prioritising cash flow and long-term planning over knee-jerk pivots, UAE startups demonstrated staying power in the face of regional tensions
- PUBLISHED: Wed 17 Jun 2026, 7:00 AM
UAE startups navigated regional tensions and a more cautious global investment climate earlier this year by doubling down on operational resilience rather than overhauling their business models, according to a senior official at the Mohammed bin Rashid Innovation Fund (MBRIF).
Shaker Zainal, head of MBRIF, told Khaleej Times that founders across the fund's network responded to uncertainty by sharpening their focus on cash flow visibility, partnerships and long-term expansion strategies.
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“For many startups, particularly those in growth stages, maintaining visibility over cash flow, partnerships and expansion plans became an important priority,” he said.
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The Fund, which is backed by the Ministry of Finance, supports entrepreneurs in the country that have unique technical ideas and solutions. Its main focus is projects withing the technology, education, renewable energy, water, health, space, and transportation sectors.
While uncertainty surrounding the regional situation led many businesses to reassess their plans, founders were largely focused on improving efficiency, diversifying partnerships and strengthening the foundations of their companies rather than reacting with short-term measures.
Overall, each sector reacted differently to the uncertain market conditions, depending on their operating models, funding structures and growth cycles, Zainal explained. Businesses with longer investment horizons, supply-chain dependencies or more capital-intensive operations typically required closer attention during the period.
Investors became more selective
Periods of uncertainty often make investors more cautious, with greater emphasis placed on business fundamentals and long-term viability.
"Interest in high-quality, innovation-led businesses remained strong, particularly for startups demonstrating clear value propositions, operational maturity and long-term relevance," Zainal said.
Overall, each sector reacted differently to the uncertain market conditions, depending on their operating models, funding structures, and growth cycles, Zainal explained.
“For many startups, particularly those in growth stages, maintaining visibility over cash flow, partnerships, and expansion plans became an important priority,” he said.
Hind Aldah is a business reporter based in Sharjah. In her spare time, you will find her playing classical guitar, painting amateur oil paintings, or crocheting the same old scarf that leads nowhere.