Sheikh Hamdan approves launch of Dhs370m Venture Capital Fund for Startups in Dubai
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Sheikh Hamdan approves launch of Dhs370m Venture Capital Fund for Startups in Dubai

Sheikh Hamdan approves launch of Dhs370m Venture Capital Fund for Startups in Dubai

It will be governed by the Dubai International Financial Centre, which is also a 15 per cent contributor to the fund

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council

A new Venture Capital Fund for Startups in Dubai is being set up with a capital of approximately Dhs370m. The fund will come into effect starting June 2022.

On Wednesday, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, approved the launch of the fund to encourage startup projects in the emirate.

The Venture Capital Fund for Startups will be governed by the Dubai International Financial Centre, which is also a 15 per cent contributor to the fund, according to Dubai Media Office.

It aims to create an integrated funding system with a number of options that can cater to the needs of enterprises.

The fund will provide Dhs370m in capital to finance small to medium startup projects, supporting their development in Dubai and expansion to global markets too.

The fund is set to contribute around Dhs3bn to the emirate’s GDP during the implementation period, which will run for eight years, extendable for two additional years. It is also expected to provide more than 8,000 jobs.

The Venture Capital Fund was approved during a meeting of The Executive Council held in the Umm Suqeim Council, chaired by Sheikh Hamdan bin Mohammed, with the Crown Prince referring to the fund as having been designed to “spearhead economic diversification and ignite sustainable economic growth.”

“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,” he added.

Besides this latest fund, a seperate fund was launched last year to support tech startups in the UAE. The Dhs1bn Dubai Future District Fund was unveiled in November last year to support seed- to growth-stage tech startups. That fund was intended to supprt the establishment of 1,000 tech companies in the country within five years, encourage them to list in the Dubai Financial Markets and stock exchange, and also increase startup investments from Dhs1.5bn to Dhs4bn.

Read: New Dhs1bn fund to support tech startups in Dubai

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