Dubai’s Fintech sector enters the next phase of growth with the new venture capital fund

With a vibrant startup ecosystem and ongoing strides to attract global talent, Dubai has consistently strengthened its Fintech sector. The industry, according to experts, has entered the next phase of growth with Dubai ticking all the right boxes as it strives to position itself as a global hub for startups through a series of bold and forward-thinking strategic measures.

What prompts experts to make such a claim is the recent launch of the $ 100.73 million Venture Capital Fund by HE Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai and chairman of the Executive Council of Dubai. Dubai, aimed at adding more cushion to the already thriving emirate ecosystem.

“We have established Dubai as the city of risk-tolerant entrepreneurs and investors. We have a flexible legislative system, robust funding tools and an effective regulatory environment. More importantly, we have dynamic public and private sectors, ”says Sheikh Hamdan, articulating Dubai’s determination to take a leadership position in offering technology-based solutions to today’s problems.

Sheikh Hamdan’s grand announcement comes in the wake of the UAE being recently ranked # 1 in the world as the best place to start a business according to the Global Entrepreneur Index. Home to more than 10,000 small and medium-sized startups, the UAE aims to grow 20 unicorns or startups worth $ 1 billion by 2031. SMEs and startups specifically employ over 86% of the private workforce.

Industry insiders believe the newly announced $ 100.73 million venture capital fund is a complementary Dubai effort to translate the UAE’s biggest unicorn dreams. “We are all about encouraging the business community. We will help young talents establish and expand their business on a global scale, “says Ahmad Al Falasi, Minister of State for Entrepreneurship and SMEs.

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Data from the Dubai International Financial Center (DIFC) confirms that the emirate has more than 2,400 companies whose main business is financial services. “Our Fintech industry is built on a solid platform. It is bound to go places. Our ecosystem is strong enough to encourage growth and innovation in financial services, ”informs Raja Al Mazrouei, executive vice president, Fintech Hive at DIFC.

DIFC, it can be seen, contributes 15% to the newly announced $ 100.73 venture capital fund, in addition to governing it. In addition, it is also tasked with creating an integrated financing system with suitable options to meet the diverse needs of businesses for their development in Dubai and gradual expansion into global markets.

Meanwhile, financial analysts watching the Middle East market closely say the launch of Venture Capital Fund for Startups was expected against the backdrop of the Dubai Chamber of the Digital Economy which recently formed four new committees to improve the business infrastructure. digital in the emirate. The Chamber, they point out, had suggested improvements and changes to existing laws to revive the digital economy.

HE Omar Sultan Al Olama, the UAE’s Minister of State for Artificial Intelligence and Remote Work Applications, also provided enough suggestions suggesting that several new initiatives were on the way to attract 300 digital startups to the emirate in the coming. two years. “The idea is to attract global digital companies to our soil,” Al Olama said.

Meanwhile, Dubai has added another flagship with Savills real estate brokers who have listed the emirate as the third best city in the world for digital nomads. Savills’ report ranked 15 top-notch residential markets based on their attractiveness to long-term distance workers. The $ 100 million fund earmarked for startups is believed to add more vigor to the emirate’s digital drive.

The Venture Capital Fund for Startups, in addition to contributing AED 3 billion to Dubai’s GDP, would create 8,000 new jobs, particularly in the Fintech sector. “We are committed to creating a vibrant business environment and providing opportunities to promote excellence,” adds Sheikh Hamdan. In short, this sums up how the emirate is helping its business community by pursuing bold ambitions.

Disclaimer: This article is part of a series of featured content on Business in Dubai

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