The Dubai Future District Fund has set an ambitious target of $1 billion for assets under management by the end of 2024, marking a fourfold increase since it was established in 2021 to invest in technology start-ups. The fund is anchored by the Dubai International Financial Centre (DIFC) and the Dubai Future Foundation (DFF), and it aims to increase founders’ access to capital in the region and stimulate the development of technology solutions. Despite a market correction globally that has squeezed the tech sector, investment in parts of the Middle East is surging. Start-ups in the Middle East and North Africa more than doubled the capital raised year-on-year in February, with the majority of deals done by regional investors, according to industry platform Wamda.
The Dubai Future District Fund is designed to invest in 180 portfolio companies and 55 venture funds with a portfolio worth $43 billion over the next decade, with an emphasis on deep tech. To achieve this, it aims to put half of its investments into venture capital funds with a local focus and the other half into start-ups directly or through Future District-affiliated programmes. The fund is targeting three to five times the returns in up to 15-year cycles, which is longer than the average venture capital investment period. The Dubai government expects this initiative to create 185,000 jobs and contribute $20 billion to the gross domestic product.
Since its launch 16 months ago, the fund has deployed $28 million in 16 investments, with the CEO of the Dubai Future District Fund, Sharif El-Badawi, saying it was a slow start to establish governance and operations. Investment went into 10 start-ups, including HR tech firm FinFlx, metaverse augmented and virtual reality developer Vuz, and a concierge health app called Valeo.
In the fund of funds portfolio, regional venture capital funds like Outliers, Byld Ventures, Shorooq Partners, Cotu Ventures, MEVP, and Nuwa Capital took investments. The Dubai Future District Fund is aiming to have $1.7 billion in equity value in the portfolio by 2025 and $7 billion under management in the next decade.
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