Sunday 15 May 2022
Dubai has launched the Venture Capital Fund for Startups with a capital of approximately AED 370 million, to drive Dubai’s economic growth and fortify its position as a global hub for financial technology (fintech), innovation, and venture capital. The Fund came into effect in June 2022.
With a flexible legislative system, robust financing tools, an effective regulatory environment, and 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.
Governed by the Dubai International Financial Center (DIFC), which is also a 15% contributor, the fund will create an integrated funding system with a number of suitable options that can cater to the needs of enterprises. It will provide AED 370 million in capital to finance small to medium startup projects, supporting their development in Dubai and gradual expansion to global markets. This will in turn help develop and foster a stimulating environment for the establishment of funds or similar financing instruments.
The fund is expected to contribute around AED 3 billion to the city’s GDP during the implementation period, which will run for eight years, extendable for two additional years. It will also provide more than 8,000 jobs for emerging talent, ensuring that Dubai attracts investors and entrepreneurs from around the world.