Today's Edition
KHALED AL KHAWALDEH (ABU DHABI)
Abu Dhabi has transformed into a major hub for entrepreneurs and ultra-wealthy business leaders, shifting from being merely a source of capital to one of the best places to invest, according to several investors from family offices and venture capital firms, present at the Abu Dhabi Family Office Summit
Held on May 29-30, the summit brings together high net-worth investors and industry experts to discuss the city’s burgeoning family office landscape.
“There was a time when people would just come here to get a bunch of money and leave. This mentality has changed; they see a huge market here,” said Sinda Zakraoui, a prominent investor in the tech space. “The opportunities are changing. In the past, we saw a lot of food delivery and e-commerce. Now, there’s a real shift into AI and deep tech, giving investors new options.”
Sinda, part of the newly created Tau Group, a “deeptech” fund backed by Abu Dhabi’s Royal Group, an enormous conglomerate chaired by H.H. Sheikh Tahnoun bin Zayed Al Nahyan, believes the emerging AI ecosystem in the emirate presents a compelling investment opportunity for private equity firms.
Family offices, representing the private wealth of some of the world’s richest individuals, are emerging as a new source of capital for start-ups in the country. Earlier this year, a report by KPMG and Agreus anticipated a 46% surge in the wealth of high-net-worth individuals and family offices in the UAE by 2026. Global financial giant Citi Group also announced it had dispatched its top investment bankers to spend more time with family offices across the Middle East, recognising it as an emerging opportunity.
“For me, progressive regulation is one of the big reasons for moving to Dubai and Abu Dhabi,” said Ish Goel, an Indian entrepreneur who recently relocated to the Emirates after securing millions in funding for his social app “Hatch”. “I always thought public markets were where I could excel, but the crypto markets have really attracted me, and this is a great place for that. I think I have to congratulate the UAE, especially regarding the progressive digital asset space.”
Goel noted that the availability of talent and easy access to regulators made the UAE an ideal base. This sentiment was echoed by Robert Marcus, CEO and Founder of Alpha X, a former Silicon Valley VC who has since relocated. “I’m from the west coast of the USA. It would have made sense to go there, but we chose to open up here,” he said. “The capital is here, the ambition is here. Where else do you have a minister of AI and a minister of the future?”
