UAE. The Arab Business Angels Network (ABAN), a subsidiary of Dubai
International Capital (DIC), announced it has started enlisting members
to create the first Arab community of Angel Investors in the Middle
East and North Africa.
During its first matchmaking event held recently at the Dubai
International Financial Centre (DIFC) to bring together businessmen and
owners of start up enterprises, ABAN provided the opportunity for five
start-ups from diverse sectors to present their businesses to investors
in order to obtain funding for organic growth.
An angel investor is an affluent individual who provides capital for
a business start-up, usually in exchange for ownership equity. Unlike
venture capital financing, angel investors typically invest in
companies that are too small or young to qualify for bank loans, or
other traditional means of financing. Although the term ‘angels’
implies individuals, the actual entity that provides the funding could
be a trust, business, or investment fund.
The first of its kind in the Arab world, aims to bridge the equity
gap faced by entrepreneurs looking to set up and grow their business.
The five start-ups included Joga, a health food and beverage chain;
Hayati, a consumer finance company for the healthcare industry;
Kindisoft, a Jordan-based software development firm for IP protection;
Content Syndicate, a publishing and content clearing house; and
I-Level, a shopper marketing company.
Sameer Al Ansari, Executive Chairman and CEO of Dubai International
Capital, the founding company of ABAN and Lead Angel investor, said:
“Angel investor networks like ABAN will support entrepreneurs in the
MENA region by facilitating the flow of capital into ventures with high
growth potential and will contribute positively to the economic
development objectives of the Arab world. By providing the core
platform to fill this equity gap and by helping start-ups build
substantial businesses, ABAN has a significant role to play in the
development of this unique asset class in the region. Through ABAN, DIC
is committed to drive economic development of the highest standards
while allowing us to give something back to our community.”
ABAN’s future plans include holding similar matchmaking activities
in four focus countries – the UAE, Egypt, Jordan and Saudi Arabia – to
develop the early-stage asset class through the establishment of two
DIC-seeded funds, namely a US$10 million Seed Capital Fund and a US$5
million Fund for Women-Led Ventures. Local partners in each market will
be sought to support the initiative.
Walid Hanna, CEO of ABAN, said: “ABAN offers exciting opportunities
for the region’s aspiring entrepreneurs. We are confident that ABAN
will help reshape the economic landscape of the Arab world. By acting
as a springboard for emerging businesses to achieve significant success
in the future, new and much-needed job opportunities will be created in
the region.”
In its efforts to motivate emerging businesses in the Arab World,
ABAN launched its first Arab Business Challenge in 2006, a region-wide
business plan competition, offering funding for the two winners. Jordan
Ostriches, a start-up business based in the Kingdom of Jordan designed
to meet the local and regional demand for ostrich products including
meat, feathers and leather was selected as a winner in addition to Palm
Paper, an Egypt-based industrial business that will use waste leaves
from palm trees to manufacture industrial grade paper products. Dubai
International Capital pledged investment funds of US$2.6 million for
the two winning teams.
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