In a bid to support start-ups, the Crown Prince of Dubai announced to launch a new venture capital finance fund valuing over Dh370 Million in the Emirate. The main objective of setting up this fund is to promote Dubai as a global start-up and entrepreneurial hub. This fund will be governed by the Dubai International Financial Centre (DIFC), which is also a 15% contributor to this fund. This new fund will come into effect from June 2022.
In this article, we will discuss the major highlights of this new finance fund with the help of our best lawyers of Dubai. Further, we will also shed light on how the emerging start-ups can avail benefits from this fund.
Venture capital finance fund
In the opinion of our best lawyers of Dubai, this finance fund will cater to the financial needs of small and medium-sized start-up projects. It will not only help them to scale but also mark a global presence. It is an integrated funding system having numerous suitable options to promote economic diversification and sustainable economic growth.
This fund will contribute around AED 3 billion to the Gross Domestic Product (GDP) of the Dubai Emirate during the implementation period. It is highlighted by our top lawyers of Dubai that this fund is set up for a period of 8 years, which can be extended for 2 additional years.
Job creation and impact on start-ups
Our best lawyers of Dubai have pointed out that this new fund will create more than 8000 jobs in the Emirates. Further, investors and entrepreneurs from all over the world will set up their start-ups in Dubai, which will reinforce the status of the Emirate as a leading fintech innovation hub. It is pertinent to note that there is a sharp rise in the demand for fintech services after the pandemic as people have shifted to a cashless economy and e-banking services become a popular mode of money transfer.
In-short
Undoubtedly, this new finance fund will assist considerably the start-ups to raise funding in the initial phase of the business. However, the modalities relating to the eligibility are yet to be rolled out. To take full advantage of this opportunity, you can set up your business with the help of our best company formation lawyers of Dubai.
BSB legal is a specialized company formation law firm in Dubai. Our bestlawyers will assist you in drafting key legal documents, advisory, and obtaining timely approval from all the authorities. To know more information, kindly contact one of our best company formation lawyers in UAE. You can email us at info@bsb.legal or call +971 5016 05046.