The Dubai multi-millionaire Mohamed Alabbar and Middle East Venture Partners (MEVP) announced the launch of their third venture capital fund with a target of USD 250 million. It would invest in innovative, tech startups from the MENA region and Turkey.
According to Alabbar, the tech-savvy young local entrepreneurs would drive the knowledge-based economy. He mentioned that the main aim of the new fund was to support emerging local startups not only through funding but also with adequate advice, industry insiders’ feedback, and operational support.
The recent data has shown that venture capital investments in MENA were less than 0.03% of the GDP in 2016, much lower than the 0.20 % in India and the 0.40% in the USA. For Alabbar, the lack of venture capital funding options in MENA and Turkey was in strong contrast with the tech savviness of the consumer and businesses and their growing market demand for technical innovations and competitive services.
The fund would work with long-term investors aiming for tech exposure in the MENA region and Turkey. It would offer a diversified investment vehicle led by experienced professionals with proven track record of success.
MEVP’s CEO Walid Hanna commented that despite the market evolution in the past few years, there was still a significant lag in the amount of capital available for venture capital funding. The MEVP aims to change that, as one of the largest capital funds in the region, it would have a positive impact on the growth of the venture capital ecosystem.