By Staff writer
Economy Minister says it will promote competitiveness of SMEs
The UAE has set up a legal system for venture capital (VC) funds aimed to strengthen the country’s position in the international innovation index ranking, it was announced on Saturday.
A venture capital fund is defined as a “special fund that invests in the highly risky investments such as new projects, technologies and troubled projects, and in businesses with new and innovative ideas especially in technological fields”.
Gulf News quoted UAE Minister of Economy Sultan Bin Saeed Al Mansouri as saying the decision was a step in the right direction and will promote the competitiveness of small and medium-sized businesses as and national business in innovation and technology-based areas.
Under the new legal system, VC funds having assets under management exceeding $49.05 million (AED180 million) must issue an annual report as per the IFRS standard, appoint a risk management officer, and limit its exposure to the risk not exceeding the fund’s net asset value.
In cases where the value of assets under management does not exceed $49.05m (AED180m), the funds need to draft an annual report summary and limit its exposure to risk not exceeding the fund’s net asset value.