How to find an investor in Dubai, UAE

How to find an investor in Dubai, UAE - Makebiz

The United Arab Emirates is increasingly attracting foreign investors and entrepreneurs wishing to develop their business in a stable and dynamically developing region. The country is confidently moving along the path of economic diversification, investing not only in the usual oil production sector, but also in promising sectors of logistics and communications, real estate and energy, trade and others. This strategy, backed by ambitious government initiatives, creates a favourable investment climate that attracts the attention of both large corporations and start-ups.

Overall, Dubai offers a unique investment opportunity amidst global volatility. Robust infrastructure, a stable economy, a strong legal system and active government support make Dubai an attractive centre for business development. Investors seeking growth and prosperity can view Dubai as a promising oasis to realise their potential in the face of global uncertainty.

The advantages of investing in:

  • Modern and developing infrastructure, a diverse transport network and access to high-speed internet with great coverage all make Dubai an attractive centre for companies operating in a wide variety of sectors.
  • A vibrant economy, a stable financial system on the one hand, a strict legal system and the provision of a high level of security on the other create a comfortable working and living environment for both investors and employees. 
  • Dubai has several freezones that offer tax incentives, simplified registration procedures and open up access not only to the Middle East, Africa and Asia, but also to international markets. 
  • The multilingual and cosmopolitan nature of the region, attracting talent and highly skilled professionals from different countries. The presence of a multilingual environment and a tolerant society make it a desirable place to live and work.
  • The government actively promotes investors and creates a conducive environment for business development by opening up funding opportunities, support programmes and networking assistance.

Despite all the advantages, there are some factors to consider:

  • investments are attracted from different countries, so competition in the market is high.
  • high standard of living can be an additional factor affecting costs. 

Let’s highlight the types of investors

Venture capital companies are professional investors who invest money in exchange for a stake in your business. They tend to bring in partners from large companies and focus on firms with high growth potential.

There are several large venture capital funds operating in the Emirates. For example, Shorooq Partners and Further Ventures in Abu Dhabi, Dubai Future District Fund in Dubai. They study the business models of companies and explore their potential. As a result of successful co-operation — the company receives funding and assistance on various business issues. 

It should not be forgotten that the Emirati government launches a variety of government programmes and incentives to stimulate economic development.  Some economic zones (for example, Khalifa Economic Zones Abu Dhabi) offer various incentives, including tax preferences, to attract investment. Private and public funds (e.g. Khalifa Foundation for Entrepreneurship Development) are also active. They provide financial support to start-ups at the initial stage of development and actively invest in business assets, including start-ups. 

How to find investors

1. Market Analysis. Before looking for investors, it is important to understand which investors are most interested in your industry. Do your research, study successful startups in your field and determine who has funded them.

2. Participate in events. Attend startup and investment conferences, trade shows, and meetups. This will allow you to meet potential investors and learn about the latest trends in the market.

3. Networking. Create a network of contacts, communicate with representatives of venture capital funds, business angels and other startups.

4. There are specialised online platforms where startups can present their projects to investors.

5. Preparing a quality pitch. Investors receive a lot of proposals, so your presentation should be clear, concise and convincing. Describe your idea, team, market, business model and development strategy. 

6. Finding partners. In some cases, instead of seeking funding, you may need to find a partner to contribute to the growth of your business. Look for partners with complementary skills and experience, make sure he or she is competent.

Tips for finding investors:

  • Be prepared for rejections. Finding investment is a long and complicated process, and not all investors will be interested in your project.
  • Don’t be afraid to ask for help. Ask other startups for advice and support.
  • Be prepared to compromise. You may have to give up part of your business or shares to investors. 
  • Keep an eye on trends. Technology is constantly evolving, so it’s important to stay on top of new trends and opportunities.
  • Create an attractive business plan. A well-written business plan will help you get the attention of investors.
  • Be confident. Being persuasive and confident plays an important role in attracting investment.
  • Research local legislation. Make sure you are familiar with the rules and requirements for attracting investment in the UAE.

It is worth highlighting some of the business clubs and accelerators in the Emirates:

  • Faster Capital — an international accelerator that helps entrepreneurs connect with investors, get funding through grants or other programmes. 
  • in5 Innovation Hub — a platform with opportunities for entrepreneurs specialising in ICT. 
  • Intelak Hub — the UAE’s first ever aviation-focused incubator for entrepreneurs and innovators looking to bring change to the tourism sector.
  • DIFC FinTech Hive offers several accelerator programmes for startups in the banking and insurance industries. 

Before you start working with an investor, it is important to:

1. Assess personal compatibility:

  • Talk to potential partners to assess their personality traits.
  • Make sure you have similar values and work style.
  • Pay attention to their communication skills and ability to co-operate.

2. Review counterparties’ resources and reliability:

  • Assess the partner’s financial capabilities.
  • Check its industry connections and influence.
  • Make sure the partner has the necessary resources to support your business.
  • Check the partner’s reputation and history of business relationships.

3. Verify financial stability:

  • Discuss financial matters openly and honestly.
  • Do a financial due diligence to make sure he or she is solvent.
  • Make sure the partner is willing to comply with all legal and ethical requirements.

Remember that finding an investor is a marathon, not a sprint. Be patient, persistent and keep working on your business.

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