30 November 2016

Dubai, U.A.E.: Mohammed Bin Rashid Fund organized an innovation workshop at the Address Hotel, Dubai, that was sponsored by the Ministry of finance. The workshop was attended by members of the Fund Committee, which reviewed strategies and directions of the Fund and its importance to the national economy. The Fund Committee discussed the significant strategic sectors which will be supported by the Fund, determination of  the acceptable level of risk and what innovation that will receive the Fund. In addition, the coordination mechanism between the committee members and the agreement on the action plan to fund innovation for representation in the region have also been discussed during the workshop.

The Fund Management team will examine and evaluate funding requests, and discuss them with experts in their relevant sectors. The team’s vision is to determine their effectiveness and conform to the standards of the Fund in terms of the nature of innovative ideas, and commercial aspects of transforming ideas into successful projects. Thus applicants must provide long-term business plans for the project, supported by a feasibility study to get the appropriate funding.

The Fund will achieve a quantum leap in support of innovation in the emirates, through facilitating requirements of the establishment of entrepreneurs innovators and limiting the financial risks. This will help to promote sustainable growth of innovator’s business, in terms of providing a service pack to accelerate the application of innovation and support them in developing their businesses at local and global levels, in cooperation with the Government and the private sector.

Muhammed Bin Rashad Fund aims to fill the funding gap faced by innovative projects, supporting national and economic goals, and contribute to building a diversified national economy, based on innovation and knowledge to achieve sustainable prosperity of the State, in line with the national strategy for innovation and make the Government the best innovative Governments in the world.

Rashid Mahboob Musabih, the acting Chief Executive of Emirates development Bank said that: “ «Mohammed Innovation Fund» is one of the most important new programs that serve a large segment of society and businesses of various kinds, noting the continuous cooperation and coordination between the Finance Ministry and the Emirates development bank to translate objectives into concrete results on the ground. In addition, an Agreement was signed between the Ministry of Finance and Emirates Development Bank on the 29th of Sep 2016 to host and operate "Mohammed bin Rashid innovation fund" by EDB, the agreement aims to activate the Fund’s role in supporting the UAE’s transition to a knowledge- based economy, and achieving prosperity and sustainability for the country.

The agreement stipulates the framework to promote and strengthen cooperation between MOF and EDB with regards to activating the “Mohammed bin Rashid Innovation Fund”. Both parties will form a joint team responsible for following up on the implementation of the approved programmes and activities, conducting periodic evaluation of the overall cooperation between both parties, and preparing the required reports to raise the levels of cooperation and coordination.

Rashid Mahboob Musabih have also added that the cooperation also included some federal agencies to be on the team participating in the Fund, in addition to outsource many experiences both within the UAE or abroad to take advantage of multiple tests and colors defined in this regard. This decision was taken with the consideration of giving a clear perception about attracting new and innovative ideas globally and espoused by the Fund to provide full support and care.

He continued that Mohammed bin Rashid Fund for innovation is a true vision of his Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister and ruler of Dubai, through which investment innovation as work culture and a lifestyle. The fund was launched with 2 billion dirhams to attract new and innovative solutions in 7 sectors of renewable energy, transportation, education, health, water, technology, space and all of the most important sectors that focus on the emirates. Furthermore, the role of the Fund provides a bank guarantee from which to choose certain institutions which meet the conditions required to give security to communicate with various local banks in the UAE.

Rashid Mahboob explained the concentration on innovative ideas is the focus of the Fund's main role to establish objectives which primarily exists to support the national innovation strategy and achieve the emirate’s vision, to be among the 10 most innovative globally by the year 2021, which will affect the move towards establishing a strong base of innovators in the U.A.E..

It is worth mentioning that the Mohammed bin Rashid Fund workshop for innovation came coinciding with innovation festival organized by the Finance Ministry to celebrate the innovators in UAE innovation week, held on 21 and 22 November in Burj Khalifa in Dubai in the presence of his Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister and ruler of Dubai. In addition, Sheikh Mohammed launched the electronic platform to receive funding requests from the funding box to start the operations of the Fund.

Mohammed Bin Rashid Fund for innovation is considered an initiative of the Federal Government, represented and supported by the Ministry of finance to support innovators in obtaining funding through Government-backed guarantees. 

The Fund was launched with a value of AED 2 billion in November of 2015 during the week of the UAE for innovation, which provide a number of innovative initiatives at the federal level and the local private sector, and the Fund will provide guarantees backed by the Government to stimulate borrowers to provide funding at low cost.

For more information, contact:

May Albouflasa

Marketing and Communication Development Manager

Emirates Development Bank

Telephone: +971 2 6991812

Email: may.albouflasa@edb.ae

© Press Release 2016