With investments totaling 535 million dirhams, Hub71 is a new initiative that aims to entice startups to setup their operations in the UAE’s capital city, Abu Dhabi. It is a part of Ghadan 21 also called Tomorrow 2021 which is an accelerator that has been launched last September by His Highness Sheikh Mohamed bin Zayed al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.
The aim of the accelerator is to create a competitive work environment and improve the competitiveness of business environment, empowering and supporting small and medium-sized enterprises (SMEs), and supporting private companies operating in tourism and industrial sector.
Abu Dhabi has proven itself as a dynamic destination for digital transformation. The government has doubled down on the efforts to make Abu Dhabi a global beacon for technology and innovation. Hub71 is expected to be a huge success as it will bring together investors, stakeholders and strategic partners under one roof for the first time. The initiative will deliver on the government’s economic goals of building a strong economic foundation, creating new jobs and boosting foreign direct investment in the country. It also aims to decrease the financial and regulatory problems facing startups not just in the UAE but all over the world.
Together with venture capitalists VCs, the fund will invest in promising tech based startups through a government matching scheme. Mubadala Investment Company, Microsoft and SoftBank Vision Fund are founding partners of this new initiative. A new law governing the public-private partnership will be issued soon to support local and international investment opportunities.
Startups that setup home in Abu Dhabi are expected to enjoy a generous subsidy package provided by the government that includes 100 per cent subsidies for office space, housing and health insurance for up to five full-time employees for 2 years and up to 50 per cent subsidies for three years for tech companies that employ between 6 and 25 full-time employees. They will also be able to achieve support in research and development and