During the inaugural annual general meeting, the CEO of Dubai Future District Fund (DFDF), Sharif El-Badawi, stated that the organization intends to generate more than AED 25.7B ($7B) in assets under management (AuM) and produce over 185,000 job opportunities over the following decade. El-Badawi revealed that the fund has presently committed $28M.
The goal of DFDF is to collect an additional $300M from Dubai Inc. investors, increasing their AuM to $500M by the first half of 2023. They also plan to accumulate another $500M from private and federal investors, including family offices and corporations, to reach a total AuM of $1B in 2024. DFDF’s anchor funding includes $200M from the Dubai Future Foundation and the Dubai International Financial Centre (DIFC).
The Dubai government and its associated entities have established a fund with the intention of becoming the leader in venture capital within emerging markets, with the aim of driving the innovation ecosystem. In January 2020, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, laid the foundation for the Dubai Future Fund by initiating a AED 1B seed fund to finance start-ups specializing in future economies and the future of finance.
Dubai Future District Fund is focused on achieving commercial returns of 3-5 times the initial investment over the next 10-15 years, with an emphasis on supporting fintech companies and start-ups that want to establish themselves in Dubai. During its first year of operation in 2022, it was one of the most active investors.
“We aim to tap into Dubai and UAE’s growth story and reinforce growth trajectory. We’ll also look at the collaboration between the private and public sectors to drive growth in the startup ecosystem,” El-Badawi said. It will also unlock high productivity sectors through innovative companies, support diversifying economy through technological innovation and support Dubai’s transformation into a future economy, he added.
“We have a comprehensive strategy, starting with UAE and slowly moving to Mena and then Measa and even international entities. In terms of allocations, we are investing 50 per cent in VC funds… We are investing in international funds that are making a presence in Dubai as there has been massive interest,” he added. The fund will also tap advanced agricultural technology, pharmaceutical and healthcare sectors. “Dubai Inc have to come together as the emirate has a leading position and we need to defend this position,” El-Badawi said.
