Crown Prince of Dubai Establishes $100 Million Venture Capital Fund to Support Startups and Entrepreneurs
The venture capital fund will start in June 2022 and last for eight years, with a two-year extension option. More than 8,000 jobs for newcomers are expected to be created.
The Crown Prince of Dubai and Chairman of the Dubai Executive Council, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, has approved the establishment of a $100.73 million (AED 370 million) Venture Capital Fund for Startups to support and sustain startup projects and entrepreneurs in the emirate.
The Venture Capital Fund for Startups, which is governed by the Dubai International Financial Centre (DIFC) and contributes 15% to the fund, will create an integrated funding system with a variety of suitable options to meet the needs of businesses.
The fund will invest $100.73 million (AED 370 million) to support the growth of small and medium-sized businesses in Dubai and their eventual expansion into global markets.
"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 United Arab Emirates and Ruler of Dubai, to spearhead economic diversification and ignite sustainable economic growth," Sheikh Hamdan bin Mohammed said. We are dedicated to fostering a thriving business environment and providing opportunities for advancement.
During the implementation period, the fund is expected to contribute around AED 3 billion to the emirate's GDP. Beginning in June 2022, the fund will be operational. and will last for eight years, with a two-year extension option.
It will also create over 8,000 jobs for young people, bolstering Dubai's position as a regional hub for entrepreneurship, financial technology (fintech), innovation, and venture capital, as well as attracting investors and entrepreneurs from all over the world.
During a meeting of the Executive Council, the launch of the venture capital fund was approved.
Sheikh Hamdan bin Mohammed, who presided over the meeting, said: "Dubai has established itself as the city of entrepreneurs and risk-tolerant investors, thanks to a flexible legislative system, robust financing tools, an effective regulatory environment, and, most importantly, dynamic public and private sectors."
"Dubai has been able to attract the best talent and investors from all over the world to form partnerships and benefit from the incredible opportunities available." In short, Dubai fosters big dreams.
Source: Arabian Business