Executive Council also approved the establishment of a center to empower and cater to the needs of vulnerable groups
Dubai Media Office
Dubai government on Wednesday introduced a major initiative to fortify the emirate’s position as a global hub for financial technology, innovation and venture capital.
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.
DIFC to oversee the fund
The Dubai International Financial Centre, a 15 per cent contributor to the initiative, will govern the fund in partnership with the international organisations.
“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.
“Though startups and SMEs are considered backbone of the economy, but when it comes to funding they are leftover by the government and banks. I think venture fund is a good idea and will support startups to establish and attract more investors and entrepreneurs around the world,” Gianchandani said.
Dubai emerges city of entrepreneurs
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 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. In short, Dubai nurtures bold ambitions,” the Crown Prince said.
Improving the quality of life
In another initiative, the Executive Council also approved the establishment of a center to empower and cater to the needs of vulnerable groups.
The center will offer shelter services and permanent or temporary institutional care to improve the quality of life of dependent individuals who need care through the provision of quality programs and services. It will be devoted to vulnerable groups including people of determination, senior citizens, the elderly and those deprived of adequate family care.
In addition, children subjected to abuse, neglect or exploitation, who will be prioritized and primarily provided with adequate care within 24 hours including rehabilitation, personal care, and orthopedic checks, will also benefit from the centre.