Rapid innovation is the strong base of Dubai, making this city the breeding ground of startups. People from around the world are shifting to the smart city to take advantage of the startup spirit.
The customers of Dubai are more into enjoying personalised, seamless, and culturally relevant experiences. To meet customers’ demands and stand out in the digital-first economy, startups are embracing the power of tailored mobile app ideas.
Do you also aim to meet the dynamic market needs of Dubai, and scale with the growth ambitions of your startup at the same time? Well, then you should also make this powerful investment that offers your startup long-term success.
If you are still not convinced, then keep reading this blog till the end to get full clarity on why the startups of Dubai are investing in custom mobile apps.
Investing in Custom Mobile App Development is a Futuristic Approach in Dubai- The Key Reasons
Investing in custom mobile app development will be a beneficial turn for your business. Moreover, if you are a startup, a smart custom mobile app will strengthen your business’s future in the growing competition of Dubai.
There are several other reasons beyond competitive edge and business growth that say building a custom mobile app is a futuristic approach. The high mobile penetration rate in Dubai is another significant reason to develop custom mobile apps.
For better understanding, we have listed the key reasons to invest in custom mobile app development below. Let’s look into them.
1] A City of Mobile-Centric Users
Dubai is a city in the UAE that comes with a high mobile penetration rate, among others, because almost everyone has access to the internet. In Dubai, there are 228.3 smartphones per 100 people, and this population relies heavily on apps to enjoy convenience in their everyday lives.
Reports also show that users in the UAE spend more than 4 hours on their smartphones daily, which will lead to more app downloads. So, these impressive numbers are saying that to serve this massive audience, startups are bringing innovation in their functioning by investing in mobile apps.
2] Startups’ Demand for Mobile Apps
The first approach of the startups in Dubai today is building an innovative app rather than a website. The reason behind this is that mobile apps today are more useful than websites, as they have become an excellent tool to connect with the customer.
Moreover, mobile apps have changed from what they were a few years back and have become more advanced, which gives startups a competitive edge. Startup investing in mobile apps gives them the chance to take charge of the diverse market since it supports multilingualism.
Also, startups in Dubai can enjoy high retention rates, offering unique UX with their custom apps.
3] Justifiable Investment Due to High Returns
If you build a mobile app in Dubai, its upfront cost can make you feel backed off from that idea, but it is suggested not to. It will be one of the best decisions for your business that helps you to enjoy long-term success with high returns.
This investment is more profitable than investing in ready-made solutions as it comes with higher user engagement, customer loyalty, and efficiency. The cost of custom mobile app development can go from $20,000 to $300,000 to even more, depending on the complexity of features and other factors.
However, even after this, startups in Dubai are investing huge amounts to enjoy its high returns.
4] Being a Hub for Digital Innovations
Everyone knows that Dubai has become the global hub for innovation, and this has become possible through all the government initiatives.
The government of the UAE has introduced several smart plans, which include Smart Dubai, Dubai Future Foundation, and the UAE Centennial 2071 plan. These plans have encouraged businesses of all sizes in Dubai to take a smart approach and invest in custom mobile apps.
Additionally, there is a government plan called “Create Apps in Dubai”, which gives business access to mobile app startups, local app developers, and world-class agencies that help in turning their vision into reality.
5] Strong Marketplace for APIs
To develop a modern custom mobile app in Dubai means you need to back it up with strong and multiple APIs. It will be hard for an app to stand out in the competition of the Dubai market without API integrations. Due to this reason, the API marketplace in Dubai has seen significant growth.
As per the reports, the API marketplace of Dubai was valued $303.6 million in the year. It is expected that in the coming 5 years, the value will increase and reach $903.8 million. So, the Dubai API market will increase at a rate of 17% over the next 5 years. This growth will bring opportunities to create a more secure app that has IoT connectivity.
6] The New Norm Driving the Investment
Investing in custom mobile apps in Dubai means making your app more than just work, i.e., they must have the ability to analyse and process users’ demands & needs.
The smart trends are helping startups in Dubai to achieve this goal by creating smarter, faster, and more personalised mobile apps. The key trends that power the features of the custom mobile apps include the following:
- ML and AI are the most common technologies to add to apps today. It helps to offer a personalized user experience, detect fraud, and create chatbots.
- AR/VR is used in creating real estate apps that allow users to have a virtual tour of the property and virtual “try-ons” in clothing or furniture apps.
- Blockchain is supported by the government to integrate into the apps to offer secure transactions and transparency in the supply chain.
-
Smart city tech drives the IoT trend, powering innovation in logistics, healthcare, and infrastructure sectors.
7] Startups Are at an All-time Boom
Startups in Dubai are at an all-time high, with more of them joining the market and investing in custom mobile apps. Reports say that in the UAE, more than 5600 new startups have registered themselves in the second half of 2024.
These startups have raised more than a billion dollars in funding. The IMF projects are feeding the economy of the UAE, helping it to grow constantly with a good number of consistent percentages. This is led mainly by the non-oil sectors of Dubai, like tech and tourism.
Additionally, the retail and transport or logistics sectors have also witnessed a significant growth rate in the first two quarters of 2024.
8] The Successful Stories of Small Businesses
Dubai is home to several successful super apps, which include some leading names like Careem, Noon, Astra Tech, and more. Careem founded its app in 2012 to let customers conveniently order food, shop for groceries, and use an eWallet.
Its unprecedented success has encouraged many businesses to invest in creating custom mobile apps and hire mobile app developers. Astra Tech, which was founded in 2022, has also created history in the Dubai market with its success. It merged the on-demand services, finances, VoIP, and more into one app that was funded by half a billion USD.
9] The Gift of Amazing ROI
Startups of Dubai have figured out that even though investing in custom mobile app development can be huge, it offers a solid return on investment. There are various ways a custom mobile app gives back to your investment. We have mentioned them below:
- A custom mobile app offers the advantage of automation and real-time data handling, which brings efficiency by reducing unnecessary loads and business costs.
- Business integrates APIs and cloud integrations, which bring flexible scalability and allow faster expansion to a new service.
- Since you can monetize your app through subscriptions and direct transactions, it helps businesses boost their revenue growth.
- Investing in custom mobile apps comes with the chance to get better investors, since they are looking to invest in digitally powered startups.
10] The Growth of App Development Companies
Dubai is getting stronger with the growing number of app development companies. This growth is bringing the demand for more app development projects from startups and businesses of all sizes.
Whether local or offshore, the app development companies have a deep understanding of the cultural insights and have a good knowledge of the demands of Dubai startups.
The app development companies of Dubai follow an agile development approach, support rapid iteration, and real-time adjustments of the mobile app development projects. Moreover, these companies also offer their support after the app launch.
Nimble AppGenie is Fueling Startups’ Future in Dubai by Building Custom Mobile Apps
Are you a Dubai-based startup that wants to level up its growth to stand out in the competitive digital economy? Investing in mobile app development is the best way to achieve the goals.
In the app development journey, you need a reliable partner that can make the whole process less complicated and help you build a dynamic mobile app. There is no better option than Nimble AppGenie, popular for being the best mobile app development company in Dubai.
We have been strengthening the future of Dubai’s startups with innovative and robust mobile apps for more than 7 years. In this successful journey, our expert team of mobile app developers plays the core role. From understanding the project’s requirements to delivering it on time, they handle it all like a pro.
Conclusion
It must be clear as day that if you want to thrive in Dubai’s competitive startup ecosystem, investing in custom mobile apps is a must. A mobile app is a strategic necessity for your startup that can fulfill the demands of the tech-savvy population, achieve success in Dubai’s thriving digital economy, and be part of government-led innovative initiatives.
You, by now, know exactly why startups like yours in the fast-paced market of Dubai are creating their mobile apps. Thus, to strengthen your brand identity and meet the user expectations, you should also invest.
So, to shape the future of your startup in the smart city of Dubai, embrace the power of custom mobile apps in 2025 and beyond.
FAQs
Why are more startups in the UAE investing in custom app development in 2025?
The demand for personalized user experience is growing in Dubai, which encourages startups to offer scalable and tailored solutions. This is why the start-ups of Dubai are heavily investing in custom app development in 2025.
This initiative will allow the startups of Dubai to stay competitive and again access the thriving startup culture and skilled talent pool.
What are the emerging trends that are driving the Dubai mobile apps market?
The key emerging trends that are driving the Dubai mobile app market include the integration of powerful technology of AI or artificial intelligence and ML or machine learning.
To provide personalised and predictive analytics, AR or augmented reality, and VR or virtual reality come into the picture.
Which industries in Dubai mostly benefit from customs mobile app development?
Dubai is popular for being a global trade hub. To streamline the customs processes and boost the speed of cargo and passenger clearance, apps are playing a key role.
Thus, the industries that are getting the most benefits from the idea of custom mobile app development include logistics & transportation, eCommerce, retail, travel & tourism. Additionally, fintech, healthcare, real estate, etc, are also witnessing the most impact.
Is it more expensive to build a custom mobile app or a ready-made solution?
If we compare a ready-made solution and custom mobile app development, then the former one is less expensive initially. A ready-made solution doesn’t charge a higher upfront cost like the custom mobile app solution, and is quicker to launch as well, but is less valuable.
Custom mobile app offers long-term value through its unique features, full ownership, and adaptable scalability, which help businesses to meet their specific needs.
