Abu Dhabi metropolis skyline, United Arab Emirates.
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ABU DHABI – Abu Dhabi is doubling down on its push into the know-how sector with a $250 million funding to help start-ups from the Middle East and North Africa area.
Mubadala, Abu Dhabi’s state funding arm, introduced Monday its new MENA tech funds will put money into corporations and enterprise funds that assist increase native tech incubator Hub71.
Hub71 was launched earlier this yr as a part of a broader effort by the federal government of the United Arab Emirates (UAE) to diversify its financial system. Microsoft and SoftBank are additionally companions within the Abu Dhabi-based scheme. Hub71 presents incentives like workplace house and well being care protection to encourage start-ups to arrange store within the area.
States like Abu Dhabi and Dubai within the UAE, in addition to different international locations within the Middle East, are more and more pumping funds into native tech ecosystems, partially to assist cut back their reliance on oil-dependent industries.
“There’s a huge amount of untapped potential in the UAE and the wider region and we are on the right path to foster more home-grown innovations, attract exceptional talent and accelerate the evolution of a flourishing tech industry in the Emirate,” stated Ibrahim Ajami, Head of Ventures at Mubadala Capital, in a press launch Monday.
Ajami stated the brand new MENA tech funds will construct on Mubadala’s ten years of expertise investing in tech corporations from all over the world. The state investor dedicated $15 billion to Softbank’s Vision Fund I, which has bankrolled tech corporations like Uber, WeWork and Slack. Mubadala began its tech portfolio in 2007 with $770 million stake in U.S. chipmaker Advanced Micro Devices, which it bought final month after making $4.25 billion, in response to Reuters.
The first funding of the brand new Middle East-focused funds went towards a Dubai-based start-up referred to as Bayzat. Bayzat, which helps corporations automate HR administration, was one of many first corporations to arrange its operations in Hub71.
Meanwhile WeWork is planning to launch its first house within the UAE subsequent yr in Hub71. The embattled office-sharing start-up postponed its IPO final month as buyers raised alarms over the corporate’s large losses and the management of its now-ousted CEO Adam Neumann.