Dubai: Sheikh Hamdan approves a 370 million dirham venture capital fund for startups – News
The Executive Council also approved the creation of a center to empower and respond to the needs of vulnerable groups
Dubai Media Office
The government of Dubai on Wednesday presented a major initiative aimed at strengthening the emirate’s position as a global hub for fintech, innovation and venture capital.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai, has approved a venture capital fund of 370 million dirhams to finance small and medium start-up projects, support their development in Dubai and their gradual expansion into global markets.
The fund, which will come into effect from June 2022, is expected to contribute around 3 billion dirhams to the emirate’s GDP during the implementation period, which will last eight years, renewable for two more years. It will provide over 8,000 jobs for emerging talent.
“We today approved the launch of the ‘Startup Venture Capital Fund’ under the guidance of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, to lead economic diversification and igniting sustainable economic growth,” Sheikh Hamdan said.
DIFC to oversee the fund
The Dubai International Financial Centre, which contributes 15% to the initiative, will manage the fund in partnership with international organizations.
“We are committed to creating a dynamic business environment and providing opportunities to promote excellence,” the Crown Prince said.
Jitendra Gianchandani, President and Managing Partner of Jitendra Consulting Group, hailed the government’s initiative and called it a milestone for the fintech industry.
“Although startups and SMEs are considered the backbone of the economy, but when it comes to funding, they are being left behind by government and banks. I think the venture capital fund is a good idea and will help startups establish and attract more investors and entrepreneurs across the world,” Gianchandani said.
Dubai becomes the city of entrepreneurs
Referring to a flexible legislative system, robust financing tools, efficient regulatory environment and most importantly, vibrant public and private sectors, Sheikh Hamdan said Dubai has established itself as the city of entrepreneurs and investors. risk tolerant. “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 has bold ambitions,” the crown prince said.
Improve quality of life
In another initiative, the Executive Council also approved the establishment of a center to empower and respond to the needs of vulnerable groups.
The center will provide residential services and permanent or temporary institutional care to improve the quality of life of dependent persons in need of care through the provision of quality programs and services. It will be devoted to vulnerable groups, including the determined, the elderly, the elderly and those deprived of adequate family care.
In addition, child victims of abuse, neglect or exploitation, who will be prioritized and receive adequate care within 24 hours, including rehabilitation, personal care and orthopedic check-ups, will also benefit from the center.