• The Dubai Future District Fund (DFDF)  has allotted as much as 20 per cent, equivalent to Dh200 million of its Dh1 billion fund to spend money on firms constructing sustainable and decarbonising applied sciences.
• This announcement was made throughout COP28’s Finance Day.

Press launch

The Dubai Future District Fund (DFDF) has bolstered its dedication to sustainability by earmarking as much as a considerable 20 %, equal to AED 200 million, of its AED 1 billion fund for supporting local weather know-how and innovation. This momentous announcement, made on COP28’s Finance Day, underscores DFDF’s pivotal function in fostering a sustainable and progressive future, aligning with the United Arab Emirates’ broader imaginative and prescient for financial diversification and sustainable improvement.

Launched by His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, DFDF is a collaborative effort between the Dubai International Financial Centre (DIFC) and the Dubai Future Foundation (DFF). This dedication reiterates DFDF’s mission, enhancing Dubai’s enterprise capital ecosystem and reinforcing its dedication to driving sustainable finance and innovation on a world scale.

Khalfan Belhoul, Chairman of DFDF and CEO of Dubai Future Foundation, emphasised:

“The substantial allocation of as much as AED 200 million from DFDF to sustainable know-how ventures represents greater than a financial dedication; it signifies our continued mission to reinforce Dubai’s enterprise capital ecosystem. At the center of DFDF’s operations is a deep concentrate on the Future of Finance and Future Economies; areas we consider are important in driving ahead the worldwide agenda for sustainability and innovation.

“This method is in clear alignment with the UAE’s broader imaginative and prescient for financial diversification and sustainable improvement, a imaginative and prescient supported by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai. Our collaboration with DIFC is instrumental on this context, enabling us to pool sources, experience, and networks to catalyze development in these pivotal areas. Together, we’re dedicated to making a thriving ecosystem the place innovation prospers, and sustainable finance turns into the cornerstone of our financial framework.”

Arif Amiri, CEO of DIFC Authority and Board Member of DFDF, acknowledged:

“As we progress in the direction of a extra sustainable monetary panorama, DIFC stays dedicated to fostering entry to extra sustainable funding. The allocation of as much as 20 % of the AED 1 billion Dubai Future District Fund represents our dedication to driving development and supporting sustainability-focused tech and innovation ventures.

“Collaborating with the Dubai Future Foundation as founding companions exemplifies our unified pursuit of shaping the way forward for finance and innovation. This initiative is a testomony to our Strategy 2030, emphasizing the empowerment of main tech corporations with progressive options aimed toward addressing urgent world challenges.”

The resolution to earmark a good portion of the fund for sustainable know-how ventures underscores DFDF’s steadfast dedication to shaping the way forward for finance and economies throughout the Middle East, Africa and South Asia areas of the Global South. 

This dedication performs a pivotal function in advancing the worldwide agenda for sustainability and innovation, notably within the context of the momentous developments within the Middle East. DFDF goals to work with multinational companions, foundations and authorities companies to impress capital in the direction of strategic Climate Tech initiatives, together with enterprise capital and market improvement actions.

In 2021, the UAE took a groundbreaking step by turning into the primary nation within the Middle East to pledge a web zero financial system by 2050. Following go well with, Saudi Arabia and Bahrain swiftly joined in, marking an thrilling inflection level for Climate Tech investments within the area. Achieving a web zero financial system positions the MENA area among the many most globally benefited, mitigating over 17% of GDP losses and producing over 1 million jobs.

As emphasised by the International Renewable Energy Agency (IRENA), the area’s present electrification price stands at 16%, with cautionary warnings that the established targets solely fulfil 50% of the renewable power capability wanted by 2030 to remain beneath the 1.5°C diploma benchmark. However, the GCC international locations boast a considerably aggressive edge in producing solar-based electrical energy and inexperienced hydrogen, because of their standing as having a number of the highest photo voltaic voltaic output on the planet.

This strategic transfer by DFDF into Climate Tech encompasses pivotal sectors reminiscent of Food and Agriculture Tech, Building Materials, and Logistics Tech. This enlargement follows DFDF’s collaboration with DFF on the ‘Future of Food’ paper, underscoring their unwavering dedication to analysis and improvement in sustainability.

Sharif El Badawi, CEO of Dubai Future District Fund, added:

“DFDF is strategically allocating a substantial portion of the fund to local weather know-how ventures, underscoring our unwavering dedication to the COP/CIF panorama and reinforcing our concentrate on the Future of Food, Future of Logistics, and the overarching theme of Financial Inclusion. Our pledge extends past mere monetary investments; it symbolizes our resolute dedication to reshaping Dubai’s enterprise capital panorama.

“In concord with the UAE’s imaginative and prescient for financial diversification and sustainable improvement, as endorsed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, underscores our duty to the broader neighborhood of the Global South. By synergizing sources and experience, we goal to amplify our collective influence, catalyzing development and fostering a thriving ecosystem the place innovation prospers, and sustainable finance turns into the cornerstone of our financial framework.”

With the UAE internet hosting COP28, DFDF, DFF, and DIFC are united of their dedication to advancing sustainable finance and innovation. Their collective goal is to set a world benchmark for future initiatives on this subject, aligning with the area’s burgeoning potential not solely in Climate Tech, but in addition in different proteins. Credit Suisse estimates the price of this sector to be a staggering US$1.4 trillion by 2050. 

By establishing themselves as world leaders in different protein manufacturing, Middle Eastern international locations anticipate a major discount of their reliance on meals imports, presently constituting 85% of the GCC’s home meals wants. This transformative method positions the area as a frontrunner in shaping the way forward for sustainable economies and world commerce.