Dh2 billion earmarked by Mohammed for UAE innovation

Dubai - Mohammed unveils fund to provide financing solutions for innovators across the country.

His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, on Tuesday launched a Dh2 billion fund to finance and support innovation initiatives in the UAE.
Called the "Shaikh Mohammed bin Rashid Al Maktoum Fund to Finance Innovation", this latest initiative by the UAE Ministry of Finance coincides with UAE Innovation Week being celebrated across the nation.
The fund "is designed to provide financing solutions for innovators across various sectors within the UAE, and support them in transforming ideas and suggestions into innovation projects that will contribute to the country's national innovation strategy and to achieving UAE Vision 2021," an announcement by the Ministry of Finance at a conference said on Tuesday.
The fund seeks to enhance funding opportunities in areas of innovation, by providing reasonable funding to entrepreneurial innovators and guaranteeing access to the commercial loans required to finance their projects. It will also contribute to creating a supportive environment for innovation through the collaboration of various financial institutions and funding entities within the UAE, including commercial banks, investment funds, family businesses and other funding entities, the statement said.
The announcement of the fund's launch was made at the "Financing Innovation and Innovative Financing" conference hosted by the Ministry of Finance.
The conference was held in the presence of Shaikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance; Obaid Humaid Al Tayer, UAE Minister of State for Financial Affairs; and Mohammed Abdullah Al Gergawi, UAE Minister of Cabinet Affairs, in addition to a number of ministers and heads of local federal entities.
Al Tayer said the pioneering innovation initiative goes hand-in-hand with the vision of the leadership to enhance innovation in order to achieve sustainable development. The goal of the innovation drive is to establish the UAE as one of the most innovative countries in the world by 2021.
The new fund will provide "a suitable environment for innovation and support innovative entrepreneurs, by offering them the necessary funding to establish, manage and develop their innovative projects", said the minister.
"The Ministry of Finance is entrusted with the role of managing and supervising the fund through a comprehensive programme that provides financing solutions to innovators within the UAE, and supports growth and innovation, specifically across the seven sectors outlined in the national innovation strategy. This fund is considered as one of the most important financing tools in the region. 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 a regional and global level," said Al Tayer.
Al Tayer said he was confident that the fund would achieve its goal to facilitate access to financing solutions for innovators, at a reasonable cost. "We look forward to supporting the fund by providing both financial and non-financial services to enhance processes, and improve performance in line with the ministry and federal government's objective to encourage and support innovation in the UAE."
Capital will be allocated to the fund to create new ways of financing innovative projects through commercial banks and financial institutions in accordance with specific criteria and standards.
- issacjohn@khaleejtimes.com