UAE’s state fund Mubadala Investment Company plans to invest $250 million through two funds in technology firms in the Middle East and North Africa, it said on Monday.
The funds will be invested in the growing start-up scene in the region while empowering tech talent in the UAE and across the wider region, the company said in a statement.
The latest investments include a $150 million fund, which will invest in funds that are committed to supporting the Abu Dhabi-based Hub71 Global Technology Platform, including companies that leverage Hub71 for regional expansion and growth.
Under its $150 million fund, Mubadala Capital will also invest in San Francisco-based Data Collective Venture Capital, Middle East Ventures Partners, and Global Ventures.
While the $100 million fund will focus on early-stage tech companies that will be part of the Hub71 development. The fund aims to invest in a portfolio of 15 firms.
The first investment from the direct fund is in Bayzat, the UAE-based company providing a free platform for human resources (HR), payroll and employee benefits and has raised $16 million in Series B funding.
It is focused on delivering an exceptional employee experience that’s accessible to every small and medium-sized enterprise through a free cloud-based platform.
The funding round was led by Point72 Ventures and is Mubadala Capitals’ first investment in a UAE-based startup. Other participants in the funding round include Elm, Greyhound Capital, Endeavor Catalyst, and Tech Invest Com.
The company has now raised a total of $31 million and plans to use the recent proceeds to invest in its technology and customer experience.
“After 10 years of investing in tech companies around the world, the time has come to leverage the experience and expertise we’ve gained for the benefit of our local market,” head of ventures at Mubadala Capital Ibrahim Ajami said.
Ajami noted that the two investment funds will contribute to Abu Dhabi's economic development by stimulating further investments in technology.