2 June, 2022
Dubai Government Approves Venture Capital Fund for Startups
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.
The Dubai International Financial Centre, a 15% contributor to the initiative, will govern the fund in partnership with the international organizations. “We are committed to creating a vibrant business environment and providing 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.
Referring to a flexible legislative system, robust financing tools, an effective regulatory environment, and most importantly, dynamic public and private sectors, Sheikh Hamdan said Dubai has established itself as a 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,” the Crown Prince said.
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