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Abu Dhabi joint fund seeks to attract 10 unicornss

Billionaire Business Attraction Fund eyes $100b market cap in 5 years

Published: Thu 11 May 2023, 7:23 PM

By
Issac John

Officials at the signing ceremony. — Supplied photo

The Annual Investment Meeting (AIM), which drew global investors, high-level government officials, decision-makers, and investors, entered into a strategic partnership with an investment banking firm and a fund manager to attract 10 unicorns with a target of achieving a total market capitalisation of $100 billion within five years.

The three-day investment platform, which sought to chart the global economic roadmap to Abu Dhabi, signed the tie-up with China Bridge Capital and Silicon-based NextG Tech Ltd to jointly establish a fund to attract companies with billions of capitals to Abu Dhabi.

A statement from AIM said China Bridge Capital, which has also long established its foothold in worldwide offices in Shenzhen, Beijing, Silicon Valley, and New York, has now fixed its sights on doing the same in the UAE through the “Abu Dhabi Billionaire Business Attraction Fund,” which aims to attract global next-generation unicorns into the country, in particular to Abu Dhabi.

“The fund seeks to promote global sustainability alongside its vision to create 10,000 jobs in three years and bring this number up to 30,000 in a five-year period,” the statement said.

“Through the fund’s Global Mobilenergy Ecosystem, which is supported by institutional LPs (Limited Partners) as well as with our partnership with AIM, we are confident that our vision to attract 10 unicorns with investment, integration and dual listing, will achieve total market capitalization of $100 billion within five years and boost the already burgeoning startup ecosystem of Abu Dhabi,” said Edward Zeng, founder of NextG Tech and China Bridge Capital.

Dawood Al Shezawi, president of the AIM, said the agreement with China Capital Bridge and NextG Tech is a significant milestone for the UAE in general, as it will help support the nation’s efforts to build a vibrant and sustainable innovation and entrepreneurial ecosystem

The fund envisions to attract global next-generation of technology, talent, capital, and jobs into the UAE. Companies within the fund are from industries such as electronic vehicles, solar, autonomous driving, intelligent sanitation, nuclear infusion, consumption, health care, infotech Web3, and hydrogen.

The Ministry of Industry and Advanced Technology (MoIAT) said its participation in the world’s leading investment platform was in line with the National Strategy for Industry and Advanced Technology, Operation 300 billion, which aims to raise the contribution of the industrial sector to GDP. The strategy also aims to enhance the UAE’s business environment to attract local and international investors to priority industries under the Make it in the Emirates initiative.

Omar Al Suwaidi, Undersecretary of the MoIAT, has opened AIM’s Investment Track by stressing the need for more investment in sectors such as renewable energy and climate technology. “The UAE’s technological development, industrial digitalization, and net zero efforts are giving rise to huge investment opportunities, which we are pleased to share with you through the Make it in the Emirates campaign,” Al Suwaidi told investors.

“At the heart of these opportunities is a unique value proposition. It is comprised of free trade agreements, a highly skilled workforce, a strategic geographical location, world-class sustainable industrial infrastructure, and much more, including various incentives and enablers. MoIAT is working alongside strategic partners to offer these incentives as part of our efforts to create a dynamic, diverse, and welcoming environment for companies and individuals to flourish.”

To date, MoIAT has collaborated with various local and international financial institutions to provide financial incentives. Together, Emirates Development Bank and Etihad Credit Insurance provided Dh4.4 billion in financing solutions to empower industrial companies in 2022, including almost Dh700 million to help companies obtain advanced technology solutions.

“Make it in the Emirates continues to build momentum, attracting interest from around the world and driving the growth of national industries. In 2022, the industrial sector contributed over Dh180 billion to GDP, with industrial exports reaching Dh174 billion,” he said.