UAE: $250 Million Fund to Invest in Emerging Tech

The United Arab Emirates flag flies in front of the Jumeirah Beach Residence in Dubai December, Reuters
The United Arab Emirates flag flies in front of the Jumeirah Beach Residence in Dubai December, Reuters
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UAE: $250 Million Fund to Invest in Emerging Tech

The United Arab Emirates flag flies in front of the Jumeirah Beach Residence in Dubai December, Reuters
The United Arab Emirates flag flies in front of the Jumeirah Beach Residence in Dubai December, Reuters

Emirati businessman Mohammad Alabbar urged Arab investors to invest in what he called “e-economy” in the Arab region due to its low percentage in the GDP especially amid pursuits by Arab governments, namely Saudi Arabia, UAE and Egypt, to adopt modern policies.

Alabbar’s statement was made on the sidelines of Middle East Venture Partners (MEVP) launching of a venture capital fund with a target size of $250 million. The fund will invest in innovative early-stage and growth-stage tech companies in the MENA region and Turkey. 

The launch of the new fund follows the announcement in May 2017 that Alabbar and MEVP have entered a strategic partnership to create one of the leading venture capital investment platforms in the region.

Alabbar said: “A new generation of tech-savvy young digital entrepreneurs is driving the growth of this region’s digital ecosystem. Their innovative ideas can bring transformational changes to the local economies. MEVP’s new fund will support emerging local tech companies with dedicated capital, specialized expertise, and operational support enabling them to reach their next level of growth.”

According to reports, venture capital investments in MENA was less than 0.03 percent of the GDP in 2016, significantly lower than 0.20 percent in India and 0.40 percent in the US. This lack in venture capital funding is in stark contrast to the tech savvy of consumers and businesses in MENA and Turkey and their growing demand for advanced and competitive technology products and services.

The target fund size of $250 million makes it one of the few independent regional venture capital funds capable of committing large investments to meet the growth requirements of tech companies in MENA and Turkey. The fund will offer long-term investors looking for tech exposure in the MENA and Turkey a diversified investment drive led by MEVP’s strong management team that has a proven track record.

Walid Hanna, MEVP Founder and CEO, said: “We have a current investment portfolio in over 40 ventures, which has created more than 1,100 quality tech jobs for the region’s youth.”



EU Needs Rare Earths Strategic Reserves against China Threat

File photo: A mining machine is seen at the Bayan Obo mine containing rare earth minerals, in Inner Mongolia, China July 16, 2011. Picture taken July 16, 2011. (Reuters)
File photo: A mining machine is seen at the Bayan Obo mine containing rare earth minerals, in Inner Mongolia, China July 16, 2011. Picture taken July 16, 2011. (Reuters)
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EU Needs Rare Earths Strategic Reserves against China Threat

File photo: A mining machine is seen at the Bayan Obo mine containing rare earth minerals, in Inner Mongolia, China July 16, 2011. Picture taken July 16, 2011. (Reuters)
File photo: A mining machine is seen at the Bayan Obo mine containing rare earth minerals, in Inner Mongolia, China July 16, 2011. Picture taken July 16, 2011. (Reuters)

European Union countries should create joint reserves of rare earths to prevent supply chain disruptions and economic blackmail from China, the EU's Commissioner for Industrial Strategy, Stephane Sejourne, told the Handelsblatt newspaper.

Sejourne also said he would launch further tenders this year to promote alternative raw material sources, the German newspaper said.

"All European countries today have strategic reserves for oil and gas. We should do the same for strategic raw materials," Sejourne was quoted as saying on Monday.

The European Union in June announced 13 new raw material projects outside the bloc to increase its supplies of metals and minerals essential to its competitiveness in the energy transition as well as defense and aerospace.

The announcement followed China's decision in April to impose export curbs on rare earth magnets until new licenses are obtained, leaving diplomats, carmakers and other companies from Europe and elsewhere scrambling to secure meetings with Beijing officials and avert factory shutdowns.

Sejourne also warned Beijing that the EU has the tools to defend itself in a potential trade war. "Europe must finally use the same weapons as its competitors," he said.

China in June said it attached great importance to the EU's concerns and would look into speeding up the approval process to ship rare earth exports to the EU.