HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, has approved the launch of the ‘Venture Capital Fund for Startups’ in order to strengthen and sustain startup projects in the emirate.
The Fund, which has a capital of around $100 million (AED370 million), aims to boost Dubai’s economic growth and strengthen the city’s position as a global hub for financial technology (FinTech), innovation, and venture capital. The Fund will come into effect starting June 2022.
“We approved the launch of the ‘Venture Capital Fund for Startups’ today under the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to spearhead economic diversification and ignite sustainable economic growth. We are committed to create a vibrant business environment and provide opportunities to promote excellence. With a flexible legislative system, robust financing tools, an effective regulatory environment, and most importantly, dynamic public and private sectors, Dubai has established itself as the city of entrepreneurs and risk-tolerant investors. Dubai has been able to attract the best talent and investors from around the world to forge partnerships and mutually benefit from the tremendous opportunities offered. In short, Dubai nurtures bold ambitions.”
The ‘Venture Capital Fund for Startups’ will be governed by the Dubai International Financial Centre, which is also a 15 percent contributor to the Fund. Further, it will create an integrated funding system with several suitable options that can cater to the needs of enterprises.
The Fund will provide $100 million in capital to finance small to medium startup projects, supporting their development in Dubai and gradual expansion to global markets. This will in turn help develop and foster a stimulating environment for the establishment of funds or similar financing instruments.
According to the statement, “The Fund is set to contribute around $816 million (AED3 billion) to the emirate’s GDP during the implementation period, which will run for eight years, extendable for two additional years. It will also provide more than 8,000 jobs for emerging talents, thus strengthening Dubai’s position as a regional center for entrepreneurship and financial technology (FinTech), innovation, and venture capital, and ensuring that it attracts investors and entrepreneurs from around the world.”