SARA ALZAABI (ABU DHABI)
The Khalifa Bin Zayed Al Nahyan Foundation on Wednesday announced that it will launch a support fund worth $27 million to support micro-, small- and medium-sized enterprises (MSMEs).
The announcement was made by H.E. Mohammed Haji Al Khouri, Director General of the Khalifa Bin Zayed Al Nahyan Foundation, during the AVPN Global Conference 2024 in Abu Dhabi.
He said that the fund aims to support eneterprises that nurture entrepreneurship, and building capacity and capability among young entrepreneurs in some of the least developed countries in the world
During the second day of the conference, which is Asia's largest network of social investors, held on Abu Dhabi's Al Saadiyat Island until April 25, insights were shared on addressing challenges related to health, climate change, and social issues.
The event also featured significant formal announcements supporting SMEs inside and outside the UAE, along with insights into impact investing strategies and the potential of AI in reducing emissions and addressing other ecosystem-related issues.
During a plenary session titled "Forging the Impact Investing Ecosystem and Navigating Emerging Trends," leading impact investors shared their journeys and discussed the approaches they have employed to navigate this shifting environment.
Impact investing has grown significantly recently, becoming deeper and more complicated. This growth has put impact investors in a prime position, where they can leverage untapped opportunities, respond to global changes, and adapt to regulatory shifts, the session heard.
The session highlighted how the impact investing landscape in Asia has evolved, explored adaptive and resilient impact investing strategies, and showcased coalition and community-building approaches to enhance impact.
During the session, Rajiv Lall, founder of Mondiale Impact, emphasised that impact investing should adopt a broader worldview, acknowledging the rapid changes and emerging risks in the world.
He highlighted that by reevaluating the world from this perspective, businesses can align themselves more effectively with a wider array of sustainable enterprises, thus fostering long-term sustainability.
"When you view the world through this lens, you adjust your business to be more relevant to a broader spectrum of sustainable enterprises. This, I assure you, is the path to establishing a sustainable business in the long run," he stated.
He expressed his belief that AI is poised to revolutionise the methods of assessing impact.
"I believe AI will fundamentally change how we capture and value impact. However, this transition is still a ways off," Lall noted.
Ken Shibusawa, CEO of Shibusawa and Company, discussed the importance of a common language in global health initiatives, which he believes aligns with the needs of the product sector, emphasising the need for collaboration between the investment and social sectors.
"One thing I believe is essential is having a common language. To me, public-private sector initiatives are fine. But if you think about it, the private sector is always seeking partnership, sales, and profits. The government, on the other hand, spends a lot of time on the budgeting process. However, once the budget is established, businesses can proceed with their operations," Shibusawa said.
Shibusawa also highlighted the importance of stakeholder capital, essential for creating value and addressing externalities such as the environment and society.
Ahmad Ali Alwan, CEO of Hub 71, discussed the potential of AI solutions in the industrial value chain to reduce emissions, stating: "Applying AI to the industrial value chain will generate cost savings and reduce emissions."
He believes that the UAE can contribute to the development of climate tech solutions. In five years, Abu Dhabi will become a testbed for new climate tech technologies, helping industries operate in a novel way.
"Abu Dhabi, of the UAE, is being this amazing testbed for new climate tech technologies to come out and to really help these industries operate in a novel way,"Alwan said.
The UAE has been investing in clean energy for over a decade, and Alwan believes that the UAE seeks greater openness, flexibility, and the establishment of a conducive environment for technology proliferation.
"But I tell you that the UAE has one of the most progressive regulatory systems, being closely connected to its ecosystem and community, ensuring its development," he noted.