Dubai’s newly launched $100.73m Venture Capital Fund for Startups is the latest indication of the city’s determination to attract entrepreneurial global talent, industry experts agreed.
Approved on Thursday by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai and Chairman of Dubai Executive Council, the fund is expected to bolster and sustain startup projects and entrepreneurs in the emirate.
“This is another example of the UAE pushing to attract investment and talent to key sectors. With the UAE liberalising visa regimes, more incentives like this are likely to help overcome some of the current obstacles to set-up and help attract talent, especially regional talent, that are looking for funding opportunities,” said Scott Livermore (below), ICAEW economic advisor, and chief economist and managing director, Oxford Economics Middle East.
“This is particularly important in sectors such as fintech that are dynamic and areas of success are uncertain. For the fund to have the biggest impact, it will need to be readily accessible to a wide number of startups and SMEs that will be key innovators in the sector,” he continued.
Governed by the Dubai International Financial Centre (DIFC), which is also a 15 percent contributor to the fund, the Venture Capital Fund for Startups will provide $100.73m (AED370m) in capital to finance small to medium startup projects, supporting their development in Dubai and gradual expansion to global markets.
Dubai third most attractive city for digital nomads
This comes in as Dubai was listed as the third best city in the world for digital nomads by real estate brokers Savills, after Lisbon and Miami. The report ranked 15 prime residential markets by their appeal to long-term remote workers.
“Dubai being voted third best city in the world for digital nomads is impressive. Digital nomads have only had the visa capacity to be able to come to Dubai for the last couple of years. This shows the desire Dubai holds on a global platform as an opportunistic place to live. The leadership of the UAE is consistently looking to the future and striving for the betterment of the country and this is enticing expats,” said Lewis Allsopp (below), CEO of Allsopp & Allsopp.
“The $100 million fund set up for startup businesses by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai is a prime example of the drive and passion to be at the forefront of a digital future,” he explained.
The fund is set to contribute around AED3bn to Dubai’s GDP during the implementation period and will come into effect starting June 2022. It will run for eight years, extendable for two additional years.
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