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June 10, 2022updated 13 Jun 2022 9:22am

Why global venture capitalists are turning their attention to Dubai International Financial Centre

By juliet martin

In 2021, the UAE was ranked top in the MENA region for venture capital (VC) deals and funding by Magnitt. Overall, UAE-based start-ups raised $1.2bn, a year-on-year increase in deal activity of 12%.

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Venture capital: explore global opportunities at DIFC

Dubai is a regional hub for innovation, and DIFC leads the way. For venture capital firms, DIFC offers access to a market worth USD 8 trillion and the region’s largest FinTech cluster. This whitepaper explores Dubai’s unique proposition for venture capital firms and provides insights into the DIFC ecosystem. It presents a guide to the simplest and quickest way to establish a venture capital firm in DIFC.
by DIFC WAM
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The emirate of Dubai leads the way in terms of UAE investment and innovation. According to financial platform Finom’s global index, Dubai ranks in the top 35 most attractive cities in the world for attracting VC investment, creating a dynamic, high-growth environment for ambitious start-ups and investors alike.

Ideally positioned between the major time zones of leading international financial centres in London and New York in the west and Hong Kong and Tokyo in the east, Dubai is the perfect location from which to do international business. In addition to being located within a five-hour flight of 2.2 billion people, Dubai also offers outstanding, state-of-the-art digital infrastructure, including logistics access to the Middle East’s largest trans-shipment hub, Jebel Ali port, and Dubai airport. For innovative companies, this provides the foundation to take their business global.

Dubai International Financial Centre (DIFC) is home to over 1,000 financial and innovation companies, more than all the other GCC countries combined. A world-class financial ecosystem and centre of financial growth, DIFC has a total market size of over $424bn, equivalent to 30% of the GCC’s combined GDP, and contributes more than 10% of Dubai’s GDP.

The Centre has attracted 17 of the world’s top 20 banks, six of the top ten asset managers, three of the top five global insurance companies and eight of the ten leading global law firms.

A world-class investment prospect

DIFC provides world-leading support for start-ups across all industries, with a sector-agnostic approach to innovation. Its vibrant ecosystem hosts more than 38,000 professionals in over 3,600 registered companies.

These professionals enjoy an environment designed to nurture innovation and collaboration. DIFC offers an abundance of educational, networking and funding opportunities. Events such as 2021’s Blockchain Week enable knowledge-sharing and engagement around the most relevant emerging industry trends. The DIFC’s common law framework also provides a flexible and robust foundation for innovation.

Home to more than 500 technology companies, DIFC’s dedicated Innovation Hub offers investors as well as founders dedicated space from $500 per month. Investors and entrepreneurs enjoy all the benefits of a financial free zone, including top talent, an empowering ecosystem, a 0% tax rate and 100% foreign ownership, meaning there is no better place to do business.

This environment is abundant in start-ups and scale-ups and rich in opportunity for ambitious venture capitalists.

Designed for success

The Centre is overseen by progressive, innovation-friendly institutions. The DIFC Authority provides an independent legal framework and world-class business infrastructure, and the Dubai Financial Services Authority establishes supportive regulation. DIFC Courts operate an independent English-language common law judiciary system, making it easy for international investors and businesses to bring their operations to the emirate.

For venture capitalists, DIFC offers the simplest and quickest route to establishing a fund in the UAE. Its process is fully digital and automated, with a one-week turnaround time and no regulatory capital requirement. DIFC provides a uniquely enabling environment for venture capitalists, waiving required functions to streamline fund set-up and DIFC ROC commercial license fees for the first two years, subsidising regulatory costs by more than 60%. This frictionless process fast-tracks venture capitalists to success.

Investors also have access to the Dh1bn Future District Fund. Established in 2020, the fund is designed to nurture the future of finance and start-ups of the future economy. It aims to deploy half of its investments into VC funds with a local focus and the other half directly into start-ups, with the mandate to accelerate regional innovation, representing a huge opportunity for venture capitalists.

DIFC’s combination of innovative spirit, robust and supportive infrastructure and financial force make it a world-class prospect for innovators and investors alike. For international venture capitalists, DIFC offers unparalleled opportunities in one of the region’s most dynamic ecosystems.

Find out more about how DIFC is providing world-class opportunities for venture capitalists here.

Free Brochure
img

Venture capital: explore global opportunities at DIFC

Dubai is a regional hub for innovation, and DIFC leads the way. For venture capital firms, DIFC offers access to a market worth USD 8 trillion and the region’s largest FinTech cluster. This whitepaper explores Dubai’s unique proposition for venture capital firms and provides insights into the DIFC ecosystem. It presents a guide to the simplest and quickest way to establish a venture capital firm in DIFC.
by DIFC WAM
Enter your details here to receive your free Brochure.

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