Dubai: The $200 million Dubai Future District Fund will raise $500 million from Dubai’s government-owned enterprises. Plus, the Fund expects to tap private sector for a further $500 million in the next two years.

“Our expected portfolio value just in the next couple of years could reach up to $2 billion just across the startups and the funds we’ve invested,” said Sarif El-Badawi, CEO of Dubai Future District Fund (DFDF). “In 10 years, through the appreciation on the assets we’ve invested in, we expect to reach around $7 billion.”

The DFDF was launched by Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and Deputy Prime Minister and Minister of Finance of the UAE in 2021.

DFDF expects to open 20 per cent of the fund to qualified retail investors. “That’s a precursor to eventually list the fund and provide the liquidity back to all the different types of shareholders that we plan to have,” said El-Badawi.

In 2022, DFDF became one of the most active investors in the UAE. “We are aiming for 3.4x return cash-on-cash for every cohort, which is about where you need to be to outperform every other asset class,” said El-Badawi.

Different tone

The CEO of DFDF said that the last couple of years has set a different tone than from the previous 30-40 years, which saw investment managers parachute into the Middle East to grab available funds and go back out. “That’s no longer the conversation,” said El-Badawi. “The conversation is about what are you doing here and what you can bring.”

Talking on the sidelines of the DFDF’s annual general meeting, El-Badawi said the key to furthering the cause of entrepreneurship, building startups, technology startups, and also the investment component is through venture capital. “I truly believe that venture capital is one of the most efficient ways to deploy capital to make change.”