The Dubai government, on Wednesday, 27 April, launched a major initiative to strengthen the position of the emirate as a global hub for innovation, financial technology and venture capital.
The Crown Prince and Chairman of the Executive Council of Dubai, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, authorised a Dh370 million Venture Capital Fund to provide financial support to small to medium startup projects supporting their establishment in Dubai and their expansion slowly to global markets.
The fund will be coming into effect from June 2022. It will contribute almost Dh3 billion to the emirate’s GDP in the execution period, which will be running for eight years, and is extendable for two additional years. It will give around 8,000 jobs to emerging talents.
Sheikh Hamdan stated, “We authorised the launch of the ‘Venture Capital Fund for Startups’ today under the directions of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai, Vice-President and Prime Minister of the UAE, to spearhead financial diversification and ignite sustainable economic growth.”
The Dubai International Financial Centre, a 15% contributor to this initiative, will manage the fund in collaboration with international organisations.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum said, “We are determined to create a dynamic business environment and provide the opportunities to encourage excellence.”
Chairman and managing partner of Jitendra Consulting Group, Jitendra Gianchandani, welcomed the government initiative and called it a significant step for the fintech sector.
Gianchandani said, “Though startups and SMEs are regarded as the backbone of the economy, they are leftover by the government and banks when it comes to the funding. I think venture fund is a fine idea and will support startups to establish and lure more investors and entrepreneurs worldwide.”
The Crown Prince said, “Dubai has attracted the best talent and investors worldwide to forge collaborations and mutually benefit from the tremendous opportunities. In short, Dubai promotes bold ambitions.”