Welcome to this week’s funding roundup, highlighting significant investments and innovative ventures in Dubai and beyond. This edition features Qubit Capital’s groundbreaking fintech platform and Space Intelligence’s climate-focused technology, showcasing the dynamic investment landscape in the region. We also see significant developments in hedge funds, electric vehicles, and commercial real estate.
PC: The Banker
1. Magellan Capital Holdings Launches $700 Million Hedge Fund
Dubai-based Magellan Capital Holdings Ltd. is set to launch a $700 million multi-strategy hedge fund as early as next month. That will be one of the biggest hedge fund launches in the UAE and will help define Dubai as a big financial centre.
Fund Details and Strategies
The former will also involve the use of equity and credit strategies to achieve diversified returns, in addition to maintaining disciplined risk management. Hedge funds launched this year around the world have managed to top $500 million or more in only 5% of cases, as per figures from industry tracker Preqin.
Seed Capital and Founder’s Background
The seed money comes from family wealth belonging to Hassan El Ali, founder of Zakher Marine International. El Ali sold the company to Abu Dhabi National Oil Co. two years ago, giving substantial financial backing to Magellan Capital Holdings.
Dubai’s Hedge Fund Landscape
Hosting local operations are 37 global hedge funds with at least $1 bln. of assets under management. Notably, 25 of them were established after 2022, which demonstrates Dubai’s climb on the ladder of international financial centres.
2. E-Daddy Invests $15 Million in UAE’s EV Sector
E-Daddy, with its vision of making a revolution in the electric vehicle sector in the UAE, is ready to invest $15 million. Urban mobility benchmarks with green technology advances in the UAE form the new standards being set by the company.
State-of-the-art Facilities
Facilities in Dubai Industrial City and National Industries Park— facilities in which the company has pumped a lot of money in huge investment, as befits its ambitious vision for sustainable urban transport.
Impact on Urban Mobility
E-Daddy aims to revolutionise city traffic not only in Dubai but also around the world with the latest technological innovations and ingenious thinking, paving the way toward sustainable transportation.
3. TECOM Group Invests AED 340 Million in Dubai Internet City
TECOM Group today announced a further investment of AED 340 million in Phase 3 of the Innovation Hub at Dubai Internet City. This comes as part of TECOM’s strategy to further diversify and expand its interests in commercial real estate.
Leading Through Innovation
The Innovation Hub Phase 3 will deliver Grade A adaptive, sustainable office spaces for Technology, Media, and Innovation-oriented companies. The project will underline Dubai’s aim to be one of the most popular innovation and business hubs around the world.
Completion and Impact
With its completion scheduled for the middle of next year, Phase 3 is going to increase the capacity of Dubai Internet City manifold. This would attract a wide range of businesses to stimulate collaboration and innovation.
4. Qubit Capital’s FinTech Innovation
Qubit Capital is breaking into the Fintech space with an AI-based matchmaking platform for smartly and efficiently matching promising startups with investors. As of Q2 2024, Qubit closed over $9 million in funding rounds for a total amount of $215 million for more than 64 startups since 2020.
Penetrating Global Markets
Qubit’s foray into the US, UK, and European markets democratises access to venture capital. A few noted deals that Qubit has brokered include the following:
- Swiipr Technologies: A UK-based travel and fintech startup raised USD 7.7 mn from Octopus Ventures and TX Ventures.
- Spottitt: A satellite-based geospatial analytics company secured USD 800,000 in funding from Right Side Capital and angels.
- iVent Pro: A virtual events platform secured funding from Purple Ventures.
AI-driven Fundraising
Qubit’s success is powered by cutting-edge AI technology, where the complex matchmaking process between startups and investors is automated. This has served especially well Seed, Series A, and Series B companies with funding round sizes from $150,000 to $30 million.
5. Space Intelligence’s Environmental Impact
UK-based satellite data analysis company Space Intelligence has closed a funding of over $7 million (Dh25.7 million) led by Dubai to conduct global forest mapping. The funding, led by AzurX Space Ventures, includes Intercontinental Exchange, Inc.
Strategic Investment for Climate Change
The investment is aligned with the mission of Space Intelligence to use satellite technology for real-time forest ecosystem monitoring in the frontline fight against climate change. This collaboration with AzurX Space Ventures will strengthen the fact that there should be climate-friendly investment as a cohesive force between space technology and environmental conservation.
Anna Hazlett, Founding Partner, AzurX Space Ventures, further pointed out that funding tech-driven, from-space solutions that positively contribute to solving global challenges—specifically environmentally related challenges like fighting against climate change—is at the core of Dubai and other authorities’ commitment to exploring fresh pathways towards innovative solutions to environmental problems.
Conclusion
It has been a very dynamic week in the investment landscape of Dubai: from hedge funds, electric vehicles, and commercial real estate, and with the location fostering groundbreaking technologies and solutions—be it in the new fintech advancements of Qubit Capital or the exciting environmental initiatives of Space Intelligence—the region further cements Dubai’s position as a global hub for finance, innovation, and sustainable growth.
