The UK tech industry has successfully steered past the challenges posed by Brexit to establish itself as a leader in European technology. According to Start Up Genome, London’s tech scene is now second only to Silicon Valley. The city serves as a hub for global services, attracting both capital and talent.
While the UK’s tech sector may not be the largest, it holds a unique international position. It is now a preferred destination for American venture capital. British tech companies frequently expand beyond their borders, with unicorns like Revolut, Deliveroo, and Checkout.com extending their reach into markets such as Kuwait, Singapore, and Pakistan.
However, the statistics show that UK tech companies often prioritise trading with established markets over exploring new ones.
Overcoming the rich world bias in UK tech
Traditionally, UK tech companies have not been pioneers in entering new markets. In 2021, the primary markets for UK digital exports were the United States, Germany, Ireland, the Netherlands, and France. This mirrors the broader economic patterns of the UK, where businesses tend to trade with close neighbours and traditional allies.
While this trend aligns with the gravity theory of trade, UK startups should not hesitate to engage with emerging markets. The UK government’s 2023 International Technology Strategy encourages investment in these economies to bridge the global digital divide.
Top emerging markets for UK tech
UK startups are gradually responding to the call to explore emerging markets. With the growth of tech scenes in these regions, British companies are shifting investments and hiring talent outside the West. Additionally, investors in frontier economies are now claiming a stake in London’s tech ecosystem. Here are the top emerging destinations for UK tech:
India
India, the world’s most populous nation, has become a key partner for UK tech. Many London startups rely heavily on Indian talent. The UK-India Tech Partnership, launched in 2018, has expanded to include several Indian cities, facilitating easier movement for tech professionals. The UK-India Young Professionals Scheme has also opened doors for Indian workers in the UK. With India’s venture capital ecosystem projected to reach $3.5 billion next year, UK startups are poised to benefit from this growing market.
Brazil
Brazil is emerging as a regional tech powerhouse, with the federal government investing heavily in sectors like biotechnology and semiconductors. The UK has been strategically involved in Brazil’s digital transformation since 2018 through initiatives like the UK-Brazil Tech Hub and the Digital Access Programme. These efforts have laid the groundwork for collaboration between British and Brazilian startups, with significant exports of telecommunications and information services. The Double Taxation Agreement further facilitates business expansion, making Brazil an attractive destination for UK tech.
Indonesia
Indonesia, the third-fastest growing economy in the G20, offers significant opportunities for UK tech. Its young, tech-savvy population has driven rapid digital growth. The UK-Indonesia Tech Hub and Jakarta incubator Endeavour have fostered successful startups, and the UK government is actively engaging Indonesian skilled workers. With ASEAN’s digital economy approaching $1 trillion, Indonesia is becoming a natural entry point for Western firms.
Ukraine
Despite the ongoing conflict, Ukraine’s startup scene remains resilient. High-profile companies like GitLab and Grammarly have Ukrainian roots. Initiatives like the UK Ukraine TechBridge provide seed funding and skills training, supporting Ukrainian startups. While formal expansion into Ukraine may remain too risky for the foreseeable future, continued collaboration will reap rewards from both a moral and a business standpoint.
South Africa
South Africa’s strong infrastructure makes it a desirable destination for UK tech investment. The UK-South Africa Tech Hub supports a diverse range of startups, including fintechs and medical AI firms. Companies like Blenheim Chalcot and Kocho have established offices in Cape Town. Despite political instability, South Africa’s growing internet user base indicates significant potential for UK tech investment.
Expanding horizons
These five countries represent just a fraction of the opportunities available to UK tech firms willow to venture beyond traditional markets. Forrester predicts that the Asia-Pacific region will see significant growth in technology spending by 2024. Latin America’s startup ecosystem has grown by nearly 5% since 2018, and mobile technology and services now account for 8% of Sub-Saharan Africa’s GDP.
While expanding into new markets presents challenges, such as differing regulatory environments and cultural norms, these are hurdles to be managed rather than reasons to avoid global expansion. A coherent market entry strategy is essential, and early movers will gain a significant advantage.
The future of UK tech
The future of UK tech lies in its ability to adapt and expand into emerging markets. By seizing opportunities in these regions, UK startups can drive growth, innovation, and global influence. Now is the time to act—explore new markets, forge partnerships, and lead the way in the global tech landscape.
Zain Ali is an experienced international business executive specialising in global expansion and strategic partnerships. With over a decade in legal and tech sectors, he has led teams across various regions, including Europe, the US, and Brazil. He founded Centuro Global to innovate in professional services and navigate emerging markets.
We recently also interviewed Centuro Global’s co-founder Asma Bashir on breaking barriers in tech, leveraging AI, and reshaping the future of UK innovation.
This article is part of a partnership with Centuro Global. For partnering opportunities, contact [email protected] or [email protected].
