Dubai is fast turning into a global hub for innovation in technology and financial services. Its business-friendly policies, strategic location, and access to vast resources are propelling the emirate forward. The emirate witnessed significant events this week, including a UAE-based AI startup raising a substantial pre-seed funding round and an increased number of global hedge funds and asset managers shifting their operations to Dubai. These landmarks depict that the emirate is increasingly attractive for businessmen, investors, and financial houses.
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MilkStraw AI Raises $600,000 in Pre-Seed Funding
MilkStraw AI, a UAE-headquartered artificial intelligence startup specializing in intelligent cloud cost optimization, announced raising $600,000 in a pre-seed funding round. The round was led by Flat6Labs, with participation from Angel Spark, Beyond Capital, and prominent angel investors, including Karim Chouikri (former CEO at Emakina), Ghassan Halawa (Founder & CEO of Parachute16), and Mahesh Murthy (Founder of Pinstorm).
Founded in 2024 by Jawad Shreim in the US, MilkStraw AI develops software that automates and optimizes cloud infrastructure costs for businesses, saving valuable engineering time and reducing inefficiencies. Since its launch, the company has gained significant traction, serving hundreds of clients, including regional tech firms such as Magnitt, Voltlines, Floranow, MakanE, and IdenTV.
“The platform automates the tedious process of optimizing cloud costs, allowing companies to focus on building products and driving innovation,” said Jawad Shreim, CEO of MilkStraw AI.
The $600,000 funding will be utilized to scale the company’s engineering and development teams, accelerate product enhancements, improve customer support, and expand its market presence across the MENA region. This expansion aligns with MilkStraw AI’s vision of revolutionizing cloud infrastructure management for fast-growing companies.
Global Hedge Funds and Asset Managers Expand to Dubai
Dubai continues to attract some of the world’s leading financial firms, further cementing its reputation as a global financial hub. Pennsylvania-based Hamilton Lane Inc., an asset manager with nearly $950 billion under management, recently established operations in Dubai after securing a license from the Dubai Financial Services Authority (DFSA).
Hamilton Lane is joined by Hong Kong-based macro hedge fund Welwing Capital, which also acquired a licence to operate in Dubai last week. These firms are part of an increasing trend of asset managers migrating to the emirate, although the former emulated major players who have gone to Dubai, such as Dymon Asia Capital and Asia Research & Capital Management.
Adding to the momentum, Jetha Global, a tech-focused hedge fund led by Karan Danthi, is shifting its operations from Hong Kong to Dubai. The fund has gained stellar returns of 38% last year and plans to be fully operational in Dubai by March.
The trend reflects a rising appeal for Dubai as an international financial destination, challenging well-established hubs like London, New York, and Hong Kong. Advantages that the emirate offers include its favorable tax environment, strategic time zone for transregional business, and access to substantial capital from UAE-based sovereign wealth funds.
The hedge fund sector in Dubai has experienced unprecedented growth, adding over 1,000 professionals to its workforce. Major industry players such as Millennium Management and Balyasny Asset Management have significantly boosted Dubai’s status as a global financial powerhouse.
“These moves showcase Dubai’s ability to foster a thriving financial ecosystem that attracts global talent and capital,” said industry experts.
Conclusion
This week’s developments emphasize Dubai’s growing prominence in both the technology and financial sectors. MilkStraw AI’s successful funding round highlights the region’s support for innovative startups, while the influx of global hedge funds and asset managers showcases the emirate’s appeal as a strategic base for financial operations. As Dubai continues to provide a supportive environment for growth and investment, it is well-positioned to remain a key player on the global economic stage.
