Dubai Crown Prince launches $100 million venture capital fund to bolster startups and entrepreneurs
[Arabian Business] Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai and Chairman of Dubai Executive Council, has approved the launch of a $100.73 million (AED 370 milion) Venture Capital Fund for Startups to bolster and sustain startup projects and entrepreneurs in the emirate.
Governed by the Dubai International Financial Centre (DIFC), which is also a 15 percent contributor to the fund, the Venture Capital Fund for Startups will create an integrated funding system with a number of suitable options that can cater to the needs of enterprises.
The fund will provide $100.73 million (AED 370 million) in capital to finance small to medium startup projects, supporting their development in Dubai and gradual expansion to global markets.
Sheikh Hamdan bin Mohammed said: “We approved the launch of the ‘Venture Capital Fund for Startups’ today under the directives of Sheikh Mohammed bin Rashid Al Maktoum, the 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 the opportunities to promote excellence.”
The fund is set to contribute around AED 3 billion to the emirate’s GDP during the implementation period. It fund will come into effect starting June 2022. and 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 centre for entrepreneurship and financial technology (fintech), innovation, and venture capital, and ensuring that it attracts investors and entrepreneurs from around the world.
The launch of the venture capital fund was approved during a meeting of the Executive Council.
Chairing the meeting, Sheikh Hamdan bin Mohammed added: “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.”