ABU DHABI / WAM
A total of 24 venture capital funds have been incorporated by the Securities and Commodities Authority (SCA) by the end of 2016, running assets of more than AED2.4 billion, according to SCA statistics. Most of these funds are affiliated to local banks and a number of other financial institutions, investing their assets in the UAE capital markets and in some GCC financial markets.
Since its establishment, SCA has been encouraging the incorporation of venture capital funds in the country in order to incentivise corporate investments and streamline the application of relevant agreements with GCC states and other advanced industrial countries with the ultimate objective of augmenting capital inflows.
Within this context, SCA launched in 2016 a new legal system regulating venture capital funds as part of its mission to develop an investment-conducive environment and strengthen the investment sector.
The new system involves necessary regulations and obligations governing venture capital funds in order to facilitate the work of innovators and draw venture capital funds to the country so as to bolster the UAE’s innovation enablers and stren- gthen its position in the international innovation index ranking.