Dubai financial hub launches venture building platform ‘DIFC Launchpad’

Dubai International Financial Centre (DIFC) has launched its venture building programme, ‘DIFC Launchpad’ as the financial hub seeks to build a strong venture model that promotes the growth of innovative startups and scaleups in the region, according to the state-run news agency, WAM.

The platform serves as an important step towards realising the objectives of the Dubai Economic Agenda D33, which aims to double the size of the city’s economy and consolidate its position as one of the world’s top four financial centres over the next decade.

“The launch of ‘DIFC Launchpad’ is set to further attract innovative companies and enhance the emirate’s appeal as a city that supports business growth and success,” said Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister, the UAE’s Minister of Finance and President of DIFC.

As part of the Dubai Economic Agenda D33 to make Dubai amongst the top 4 global financial centers @DIFC launches its venture building platform, DIFC launchpad. The platform creates opportunities for 200 new ventures & attracts over AED 2B in venture capital. pic.twitter.com/5ImLHzV1yH

— Maktoum Bin Mohammed (@MaktoumMohammed) March 21, 2023

The initiative supports efforts to realise the financial hub’s 2030 strategy to catalyse new job creation and economic development in both the financial and non-financial services industry.

Read: Dubai’s DIFC registers highest ever revenue in 2022

Essa Kazim, Governor of DIFC, said the venture-building platform is expected to support the launch of more than 200 new ventures, with over 100 of them being scale-ups that will collectively create over 8,000 new jobs and attract more than $544m (Dhs2bn) in venture capital.

The programme is supported by multinational experts specialised in new venture creation, corporate innovation and emerging technologies. They will be working closely with DIFC’s investor bases and corporate partners Mashreq, Mastercard and Commercial Bank of Dubai to launch the next generation of global fintech startups in the city.

To scale up activity across a range of verticals, the venture building platform attracted some of the world’s leading venture studios to Dubai including R/GA, Antler, BIM Ventures and Futurelabs.

The Career Development Centre at Saïd Business School at the University of Oxford is the Talent Partner of the venture building platform. The pioneering talent bridge between Oxford and Dubai will connect members with the world-class talent and expertise that exist within Saïd Business School.

The partnership is expected to further accelerate Dubai’s position as a global, inclusive and forward-thinking talent hub.

DIFC’s growth strategy

The business hub is in talks with more than 50 hedge funds that jointly manage over $1tn worth of assets about licensing and set up in the financial centre hub. Dubai has emerged as a preferred destination for hedge fund traders, thanks to the city’s ease of doing business, tax-free status and its allure as a global tourism hub.

Read: Dubai’s DIFC in talks to attract 50 hedge funds

The financial centre is offering reduced licensing fees and capital requirements for hedge funds domiciling a domestic fund. Its combined revenues soared by 18 per cent year-on-year to Dhs1.06bn from Dhs897m in 2021 driven by a sharp increase in newly registered companies.

The centre’s operating profit rose by 19 per cent to Dhs679m in 2022 while its assets crossed Dhs15.3bn, cementing the financial hub’s position as the leading global financial centre in the Middle East, Africa and South Asia (MEASA) region.

The number of people employed at the financial centre also rose 22 per cent to 36,083 workers in 2022. The business hub is home to 17 of the world’s top 20 banks, 25 of the world’s top 30 systemically important global banks, five of the top 10 insurance companies, five of the top 10 asset managers and many leading global legal and consulting firms.

Fintech and innovation companies operating within the financial centre attracted over $615m last year and the two sectors have emerged as became the fastest growing sector in the centre with 291 new clients. The financial hub is now home to 686 fintech and innovation firms, ranging from startups to global unicorns.