the uae announces legal system for venture capital funds
Last Updated : GMT 01:59:58
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 01:59:58
Arab Today, arab today

The UAE announces legal system for venture capital funds

Arab Today, arab today

Arab Today, arab today The UAE announces legal system for venture capital funds

The signing ceremony was attended by Ohoud Bint Khalfan Al Roumi, Minister of State for Happiness and Director General of the Prime Minister’s Office. It was signed by Obaid Saif Hamad Al Za’abi, Acting Chief Executive Officer of the Securities and Commodities Authority (SCA), in the presence of Abdullah Sultan Alfan Al Shamsi Board, Member and Assistant undersecretary for Industrial Affairs Ministry of Economy, and Huda Al Hashemi, assistant to the director-general for Strategy and Innovation.
Abu Dhabi - Arab Today

 The UAE government announced on Saturday the establishment of a legal system for venture capital funds.

The move comes as part of the projects of the first batch of government accelerators launched earlier by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to expedite the process of achieving the National Agenda goals.

“Approving the controls and obligations governing the venture capital fund is the fruit of a strong cooperation and partnership between the public and private sector, aiming to expand the scopes of funding innovation-based projects in the UAE, Sultan Bin Saeed Al Mansouri, Minister of Economy said.

He added that this decision is a step in the right direction. It will further promote the competitiveness of small and medium-sized businesses as well as the national business especially in innovation and technology-based areas.

In the world of investment, venture capital is prominent and innovative measure used to fund leading projects and businesses and provide success factors especially in the establishment phases. This will, undoubtedly, reflect positively on the UAE march towards entrenching the concepts of innovations and knowledge and will help achieve the governmental goal of placing the UAE among the top ten countries in the world of innovation by 2021, Al Mansouri concluded

A venture capital fund is defined as a special fund that invests in the highly risky investments like new projects, technologies and troubled projects, as well as in businesses with new and innovative ideas especially in technological fields.

The legal system involves necessary controls and obligations governing the venture capital fund. It also aims to facilitate the work of innovators and attract venture capital funds to the country so as to bolster the UAE’s innovation enablers and strengthen its position in the international innovation index ranking.

According to the new system, if the value of assets under management exceeds Dh180 million, it is obligatory for a business to issue an annual report according to the IFRS standards, appoint a risk management officer, and its exposure to the risk should not exceed the fund’s net asset value.

However, in the event that the value of assets under management does not exceed Dh180 million, it obligatory for a business to draft annual report summary. Its exposure to risk still should not exceed the fund’s net asset value.

The venture capital fund, according to article No. 3 of the decision, has three obligations. The fund should invest not less than 70 per cent of its assets in one or more of the following domains:

1-Lending new or troubled projects by not more than 30 per cent of its assets (or participating in these projects).

2-Equity instruments issued by unlisted companies in the market or other instruments issued by those companies or subsidiaries.

3-Units of other venture capital funds provided that investments should not exceed 10 per cent of its assets.

4-Lending businesses mentioned above by not more than 30 per cent of its assets provided that the fund should be an investor in the business of that instruments.

The second obligation is that the fund’s investments should not exceed 30 per cent of its assets in the investments that the Open public investment fund (Emirates UCITS) is allowed to invest in. In case of investing abroad, the fund should committee to the above mentioned obligations.

The article No. 4 lists another three obligations the fund should commit to including conducting regular evaluation to the fund’s assets and units (at least one time a year), issuing an annual report that involves the fund’s investments, activities, loses and profits and the percentage of fund’s borrowing or collaterals should not exceed its assets.

The signing ceremony was attended by Ohoud Bint Khalfan Al Roumi — Minister of State for Happiness and Director General of the Prime Minister’s Office. It was signed by Obaid Saif Hamad Al Za’abi, Acting Chief Executive Officer of the Securities and Commodities Authority (SCA), in the presence of Abdullah Sultan Alfan Al Shamsi Board, Member and Assistant undersecretary for Industrial Affairs Ministry of Economy, and Huda Al Hashemi, assistant to the director-general for Strategy and Innovation.

source : gulfnews

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

the uae announces legal system for venture capital funds the uae announces legal system for venture capital funds

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

the uae announces legal system for venture capital funds the uae announces legal system for venture capital funds

 



Arab Today, arab today Modern colorful bedroom renovation

GMT 11:23 2017 Thursday ,21 December

Modern colorful bedroom renovation

GMT 16:10 2018 Friday ,14 December

Bahrain press headlines For 14 Dec 2018

GMT 10:40 2017 Friday ,01 September

FM meets US Congress delegation

GMT 11:14 2017 Tuesday ,19 December

For the Variety of Interior Design Styles

GMT 20:19 2017 Friday ,24 November

'Trash islands' off Central America indicate

GMT 18:35 2017 Saturday ,28 October

Egypt's Salma Nasim wins gold medal

GMT 11:20 2017 Saturday ,07 October

Saber Al Robaei ended filming of new video clip

GMT 00:05 2017 Friday ,13 January

Japan PM first foreign leader to visit

GMT 02:32 2016 Thursday ,08 December

Joint Communique of GCC - UK First Summit

GMT 01:24 2017 Tuesday ,19 December

history of a 'pact with the devil'
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday