- July 5, 2022
- Posted by: axiom_admin
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The Dubai government announced a major initiative on April 27th, 2022, to strengthen the Emirate’s status as a global centre for financial technology, innovation, and venture capital.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai’s Executive Council, has authorized a Dh370 million Venture Capital Fund to promote the growth of small and medium-sized startups in Dubai and their eventual entry into worldwide markets.
The fund, which will take effect in June 2022, is expected to contribute about Dh3 billion to the Emirate’s GDP over its eight-year implementation phase, which can be extended for two more years. It will create over 8,000 jobs for up-and-coming talent.
Announcing the major investment of Dhs370 million in small to medium startup project, His Highness Sheikh Hamdan said, ‘The goal of this project is to lead economic diversification and ignite sustained economic growth, and to develop an integrated funding structure with a variety of solutions to meet the demands of businesses.’
The fund will be managed in collaboration with international organizations by the Dubai International Financial Centre, which is a 15% contributor to the program.
The main aim is to assist SMEs develop and flourish within the Dubai economic environment, and facilitate entry into international markets. It is worthy to note that this is not the first of such initiatives by the UAE as a separate fund was formed last year to support IT startups in the UAE.
Consistent with the Dubai vision of being the city of entrepreneurs and risk-tolerant investors, His Highness Shiekh Hamdan reiterated the work achieved in creating a flexible legislative framework, robust financing mechanisms, an effective regulatory environment, and, most significantly, active public and private business and economic sectors.
