Mohammed bin Rashid: Investing in innovation brings long-term returns

Government of Dubai Media Office - 24 November 2015

Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum today launched an AED 2 billion innovation fund that aims to finance innovative and commercially viable ideas and create a supportive environment for innovation and creativity.

The fund, established in collaboration with local banks and finance houses, will be managed by the Ministry of Finance. A consulting panel created by the fund, made up of experts from a range of sectors, will evaluate the financial feasibility of projects proposed for funding.

Dubai Crown Prince His Highness Sheikh Hamdan bin Mohammed bin Rashid al Maktoum attended the launch event.

His Highness Sheikh Mohammed bin Rashid 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.

His Highness said: "Investing in innovation brings long-term returns, and our national investment houses are partners in changing the developmental path of the country."

He added: "Innovation and creativity will not flourish without a supportive financial environment, and this fund is only a start. We are looking forward to developing partnerships that will increase this investment so that innovation can become one of the pillars of our national economy."

Sheikh Mohammed further said: "The government has invested billions in developing our infrastructure and created an exceptional legislative and regulatory system. Our government services are among the best in the world. Today, we can achieve our objective of becoming one of the most innovative countries in the world."

The announcement of the new fund was made during a seminar on 'Financing Innovation and Innovative Financing' hosted by the Ministry of Finance at the Sofitel Dubai Downtown Hotel, as part of the Ministry's participation in UAE Innovation Week. The launch event was held in the presence of Minister of Cabinet Affairs Mohammed Al Gergawi, Minister of State for Financial Affairs Obaid bin Humaid Al Tayer, Minister of Economy Sultan bin Saeed Al Mansoori, Director General of Dubai Protocol Department Khalifa Saeed Sulaiman, Director General of the Prime Minister's Office Ohood Al Roumi and a number of senior officials in addition to Under-Secretary of the Ministry of Finance Younis Haji Al Khoori and a number senior officials.

Minister of State for Financial Affairs Obaid bin Humaid Al Tayer said: "This initiative reflects the leadership's vision to instill a culture of innovation in order to advance sustainable development. We aim to make the UAE one of the top ten most innovative countries in the world by 2021. The establishment of the "Mohammed bin Rashid Innovation Fund" will help in creating a supportive environment for innovation and innovative entrepreneurship by providing the funding necessary for establishing, managing and developing innovative projects."

Al Tayer added: "The Ministry of Finance is entrusted with the role of managing and supervising the fund through a comprehensive programme which provides financing solutions to innovators within the UAE, and supports growth and innovation, specifically in the seven sectors outlined in the national innovation strategy. This fund is considered one of the most important means for financing innovation 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 both regionally and globally."

Al Tayer further said: "We are confident that the fund will achieve its goal of facilitating 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's and the federal government's objective of encouraging and supporting innovation in the UAE."

The fund will provide support to individuals and companies registered in the country, and those who provide exceptional innovative ideas, whether they be techniques, processes, intellectual products or services. Eligible applicants are required to register their project as intellectual property and the project must be at an early stage. The fund will provide support for all projects, but priority will be given to projects related to the seven sectors outlined in the national innovation strategy (renewable energy, transport, education, health, technology, water and space). Applicants requesting funding must provide a business development plan to be eligible for funding.

Specific phases for the development of the fund have been outlined. The pilot phase will be launched in the first half of 2016 with the participation of individuals and companies from various sectors. This will be followed by the official launch of the fund's operations in the second half of 2016.

The fund's management will evaluate all funding requests and further discuss them with a group of experts in the respective areas to determine the viability of each project, and their compliance with the criteria set by the fund for innovative ideas and the commercial aspects related to transforming these ideas into successful ventures. A small fee will be charged for all applications. The fee amount will depend on each individual request.

The decision to establish the fund was based on specific studies conducted by the Ministry of Finance to identify global best practices in financing innovation projects and ensuring maximum benefits from this initiative. This initiative will play a significant role in nurturing leadership in innovation across various levels, and the sustainable development of the UAE in line with the national innovation strategy and vision of the UAE government.

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© Press Release 2015