Abu Dhabi Government invests over AED 1bn (US$272m) to drive digital transformation
Hub71, Abu Dhabi’s new tech ecosystem in collaboration with Microsoft, ADGM, SoftBank Vision Fund and Mubadala Investment Company aims to attract Chinese VCs and start-ups looking to capitalize on growth in the MENA region
March 25, 2019, Hong Kong, China – Under the patronage of His Highness Sheikh Khalid bin Mohamed bin Zayed Al Nahyan, Chairman of the Executive Committee and Member of the Abu Dhabi Executive Council, His Excellency Jassim Mohammed Buatabh Al Zaabi, Chairman of the Abu Dhabi Executive Office has officially launched Hub71, a global tech ecosystem led by Mubadala Investment Company. Supported by the Abu Dhabi Government’s economic accelerator program – ‘Ghadan 21’ – alongside some of the world’s most influential investors, technology companies and the Emirate’s business enabler, Abu Dhabi Global Market, Hub71 is set to accelerate Abu Dhabi’s path to becoming a global front-runner in technology innovation.
As part of this initiative, the Abu Dhabi Government has announced it will launch a 535 million AED fund to invest in startups and VCs at Hub71. Starting April 28, 2019, the fund will co-invest with venture capitalists (VCs) in Hub71 based tech start-ups through a government matching scheme, as well as invest in first-time fund managers to support their establishment and growth in the Emirate. Hub71 is also offering fully subsidized housing, office space and health insurance for seed-stage tech companies. For more established tech ventures, 50 per cent subsidy packages will be available.
According to the UAE’s Ministry of Economy, the value of trade between the UAE and China reached US$53.3 billion in 2017, making China the UAE’s top non-oil trade partner. Trade with China represented 14.7% of the UAE’s total trade and is expected to increase to US$70 billion a year, by 2020. This track record makes Abu Dhabi’s Hub71 the ideal location for China’s technology-focused start-ups and investors.
Speaking at the recent Bloomberg Invest Asia event, His Excellency Waleed Al Mokarrab Al Muhairi, Deputy Group Chief Executive Officer and Chief Executive Officer of Alternative Investments & Infrastructure of Mubadala Investment Company explained to delegates that; “China presents some of the most exciting technology-led investment opportunities around today. As a diversified global investor, we understand that technology is the driver of global growth and we hope to attract these innovators, as well as Chinese investors to Abu Dhabi.”
In 2015, Mubadala partnered with the China Development Bank Capital and China’s State Administration of Foreign Exchange to establish the US$10bn UAE-China Joint Investment Fund and opened an office in Hong Kong to manage the fund and growing presence in China. Through the SoftBank Vision Fund, in which Mubadala has committed US$15 billion, Mubadala is also invested in some of China’s most innovative tech companies, including DiDi and Sensetime.
H.E. Jassim Mohammed Buatabh Al Zaabi, Chairman of the Abu Dhabi Executive Office commented: “Abu Dhabi has proven itself as a place where innovation can succeed and inspire. Through our economic accelerator program, Ghadan 21, we’re doubling down on efforts to make Abu Dhabi a global beacon for technology and innovation.”
Abu Dhabi’s Hub71 plays a central role in delivering on the Government’s economic strategy to build an advanced, globally integrated knowledge-based economy as the business gateway to the MENA region. For more information about Hub71 and its subsidy packages, visit www.Hub71AD.com.
Notes to Editors:
President Xi Jinping’s visit in July 2018 resulted in 13 strategic agreements across a wide range of areas, including: energy, e-commerce, infrastructure, renewables, security and partnership between China and Abu Dhabi Global Market, and a strategic agreement between ADNOC and China National Petroleum Company.
Hub71 is a global tech ecosystem strategically located in Abu Dhabi Global Market Square, offering a global network that will come together to enable start-up success, innovation and growth opportunities.
As a flagship ‘Ghadan 21’ initiative, Hub71 will be the nucleus of a global ecosystem working with the Abu Dhabi government and global partners to create the optimal environment helping start-ups and entrepreneurs develop, scale and build transformational businesses. Mubadala leads this initiative in partnership with Microsoft and SoftBank Vision Fund along with Abu Dhabi Global Market as the business enabler and regulator, creating a unique tech ecosystem.
Hub71 is the destination of choice for tech companies, start-ups and investors looking to capitalize on growth opportunities in one of the world’s fastest growing economies.
For more information visit www.Hub71AD.com and follow us on @Hub71AD #Hub71AD.
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Nadine Saleh Hassan
Head of Communications – Alternative Investments & Infrastructure, Group Communications
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