Dubai, 4th December, 2005: The Arab Business Angels Network(ABAN), a non- profit organization founded by the Young ArabLeaders during the Clinton initiative in September 2005, hasannounced the launch of the first annual Arab Business Challenge.
The Challenge will grant the best two business plans submittedby Arab entrepreneurs with the funding necessary to develop theirplan into an operating business, with capital funding that canreach up to $1 million for each plan, according to a press release.As the investment arm of Dubai Holding, Dubai InternationalCapital has been entrusted with the roll-out of ABAN, and willact as the lead angel for the competition, which aims at stimulatingregional entrepreneurship and business innovation.
Announcing the launch of the Arab Business Challenge, SameerAl Ansari, chief executive officer of Dubai International Capitaland Young Arab Leader said, "Despite the liquidity of capitalmarkets in the Middle East, young businesses and start-ups oftenfall into an equity gap where they cannot secure funding to flourish.
"This initiative by the Arab Business Angels Network unleashesyoung entrepreneurs from the shackles of raising capital throughpersonal finance, family funding or venture capital, and givesthem greater confidence to turn their ideas into profitable enterprisesthat have a positive impact on the economic development of theregion." Submissions for the Arab Business Challenge will commencein January of 2006, and Arab entrepreneurs between the ages of15 to 40 are eligible for entry. A website dedicated to theChallenge has been launched, www.arabbusinessplan.com, whichprovides application details as well as the official businessplan form to be submitted.
Strategic partners in the Arab Business Challenge initiativeinclude Price waterhouseCoopers and McKinsey, who will be lendingresources in reviewing and evaluating the project plans submittedby young Arabs, as well as contributing with advisory expertise.
Al Araybiya satellite channel is the exclusive media partnerand will provide special programming based on the initiative.
The American University in Dubai (AUD) and American Universityin Cairo (AUC) along with other key universities from acrossthe Arab world have also partnered with the initiative in orderto allow maximum reach to potential candidates.
Business Angels, also known as Angel Investors, are typicallyindividuals who invest in businesses offering a higher returnthan they would usually see from more traditional or conventionalinvestment. These networks serve as a vehicle to pool togetherinvestment efforts and fuel the growth of productive entrepreneurialinitiatives.
Today, ABAN is uniquely positioned as the biggest organizationsin the Arab world to provide entrepreneurs with access to a largepool of angel funding through its network of high net worth individuals(HNWIs).
"Financial capital that pools seed capital, or early stage fundingthrough angel investors, are extremely limited in the regionand in some parts non-existent. The founders of the ABAN believethat a venture such as this is an ideal platform to complementthe economic development objectives of the Arab world and launchcreative and exciting ventures," added Al Ansari.
Habib Ghawi, YAL Executive Board Member said, "Beyond the financialsupport, the Arab Business Plan Competition, through the differentregional and international strategic partners, will provide expertcounsel to the winning plan through the development process untilit is actually realized." He added, "We believe this initiativewill create a launch pad for many of the future's successfulbusinesses. It very much reflects YAL's strategic projects thataim at boosting the economy in the Arab region through empoweringits young."
