The VC Market in Dubai

Flag of Dubai

Dubai flag

It used to be that the VC market was considered to be more profitable in certain geographical locations. But today the venture capitalist like Efraim Landa can find a market almost anywhere in the world. It still holds true that some economic climates are much more conducive to profitability than others. Some governments have restrictions or regulations which make risk taking in the VC market less appealing than other regions. Entrepreneurs like Efraim Landa have an easier time selling their innovative ideas in some regions while it is still very difficult in many. But in almost every area of the world the idea of the venture capitalist is slowly catching on.

VC in Dubai

The venture capitalist market in Dubai is in relatively good shape today. Some of the VC firms have indicated that they continue seeing growth in small to medium sized enterprises. Specifically, financial services, commercial real estate and restaurant retailing are all sectors which are part of the VC market. Most of the VC firms are comfortable with the progress being made and feel that the future looks good for the VC market in Dubai. This of course helps to create an atmosphere in which investors are more apt to place their money.

Venture Capital Strategies for Dubai

Even though the VC market is doing well in Dubai there is room for some improvements. There is still a place for mentoring and management guidance as well as some financial support which can help grow the underlying businesses as well as help to improve efficiency which will eventually work to increase profits for the VC in the region.  It is likely to be time for the venture capitalist in Dubai to begin strategizing and concentrating on the computer science market. They can work with local universities and possibly attract some of the larger corporations like Nokia, Motorola or IBM to the area. One thing that appears to be part of the recent strategies is to develop more software engineers in the area. This way the VC market can concentrate on writing software instead of only on professionals in IT.  Another area that is beginning to gain some interest that may help the future of the VC market in the region is the incubation of startups. Entrepreneurships are gaining encouragement and this is what is necessary to help fuel the VC market in the future.

Future of VC in Dubai

Experts tend to agree that by 2015 Dubai may be a very profitable area for the venture capitalist. It seems that they have a lot going for them in this arena and it should continue to develop over the next few years. Just like everyone else, they did suffer some setbacks in the recession, but they have been recovering steadily. This is partly due to the increase in the price of oil as well as an increase in tourism in the area. They already have a couple of well established VC firms and the DubaiInternationalFinancialCenter already acts as a hub for numerous VC and PE firms in the area. This of course tends to add wealth to the sovereign wealth which tends to be reinvested into private equity and venture capital firms. They are also situated in a position to take advantage of several of the fastest growing markets in the area. They can easily negotiate with Central and West Asia and many of the Gulf States as well as some of the southern European markets. The average income for managers already involved in VC firms or transactions is already pretty high. This and the fact that the region contains a population that is multilingual should all work together to bring a robust VC market into fruition over the next few years.

About Efraim Landa

My name is Efraim Landa I am an entrepreneur and an expert in venture capital. I am the co founder of Effi Enterprises, a venture capital firm as well as the co founder and CEO of Gluco Vista, a company that is in the process of developing a non invasive glucose meter for those with diabetes.

Posted on August 7, 2013, in History of Venture Capital, VC Firm, Venture Capital, Venture Capital Markets and tagged , , , . Bookmark the permalink. Leave a comment.

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