Sheikh Hamdan approves Dh370 million venture capital fund for startups
Executive Council also approved the establishment of a centre to empower and cater to the needs of vulnerable groups
Dubai government on Wednesday introduced a major initiative to fortify the emirate’s position as a global hub for financial technology, innovation and venture capital.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, approved a Dh370 million Venture Capital Fund to finance small to medium startup projects, supporting their development in Dubai and gradual expansion to global markets.
The fund, which will come into effect from June 2022, is set to contribute around Dh3 billion to the emirate’s GDP during the implementation period, which will run for eight years, extendable for two additional years. It will provide more than 8,000 jobs for emerging talents.
“We approved the launch of the ‘Venture Capital Fund for Startups’ today under the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to spearhead economic diversification and ignite sustainable economic growth,” Sheikh Hamdan said.
DIFC to supervise the fund
The Dubai International Financial Centre, a 15 per cent contributor to the initiative, will govern the fund in partnership with the international organisations.
“We are committed to create a vibrant business environment and provide the opportunities to promote excellence,” the Crown Prince said.
Jitendra Gianchandani, chairman and managing partner of Jitendra Consulting Group, welcomed the government initiative and termed it a major step for fintech sector.
“Though startups and SMEs are considered backbone of the economy, but when it comes to funding they are leftover by the government and banks. I think venture fund is a good idea and will support startups to establish and attract more investors and entrepreneurs around the world,” Gianchandani said.