Dh2 billion fund to finance innovation projects launched in Dubai

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, right, with Obaid Humaid Al Tayer, Minister of State for Financial Affairs, during the launch of the Sheikh Mohammed bin Rashid Al MaktouShow more

A new Dh2 billion fund to help provide finance for innovators was launched in Dubai yesterday.

The Sheikh Mohammed bin Rashid Al Maktoum Fund to Finance Innovation aims to support them in transforming ideas into projects.

The Federal Government initiative will guarantee commercial loans required to finance projects through the Ministry of Finance. It will also draw in the support of commercial banks, investment funds, family businesses and other funding entities.

At the launch of the fund Sheikh Mohammed called for a strategic partnership between the Government and the UAE’s banking sector “to develop a regulatory framework that supports innovation in terms of investment, guarantees, financial facilities and other elements”, according to a statement yesterday.

The UAE and other regional governments are investing heavily in driving innovation as they seek to diversify their economies, attract inward investment and develop the skills base needed to reduce their reliance on oil and gas.

“This fund is considered one of the most important financing tools in the region,” said Obaid Humaid Al Tayer, Minister of State for Financial Affairs. “It is expected to play a significant role in driving growth and economic development within the UAE, and in strengthening the country’s position on both a regional and global level.”

Eligible applicants need to have registered their project as intellectual property and the initial stage of the project must already be established, the Ministry of Finance said.

It will prioritise projects that contribute to the UAE Vision 2021 and in the seven sectors named in the national innovation strategy. They are: renewable energy, transport, education, health, technology, water and space. The pilot phase of the initiative will be launched during the first half of next year followed by the official launch of the Fund’s operations in the second half of 2016. A small fee will be charged for all applications, “and the amount will depend on each individual request”. All projects will be evaluated by a “group of experts in respective areas” for their “effectiveness and practicality”.

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