Raising Capital from The Middle East

The allure of the golden sands extends beyond the picturesque desert dunes to the lucrative investment landscape of the United Arab Emirates (UAE). Nestled between the pristine waters of the Arabian Gulf and the vast desert expanses, the UAE is a nation where tradition intertwines with modernity, creating a vibrant economic canvas brimming with opportunities.

The UAE has evolved into a global financial hub, with its skyscrapers housing numerous multinational corporations and its marketplaces bustling with entrepreneurs from across the globe. Here’s a glimpse into the nation’s rich investment milieu:

• Global Financial Nexus: The robust regulatory frameworks and strategic geographic location serve as a magnet for global investors, making the UAE a financial nexus between the East and the West.

• Diverse Investment Landscape: The country’s investment ecosystem is as diverse as its cultural tapestry, offering a myriad of opportunities for High-Networth Individuals (HNWIs) and Family Offices.

• Innovation Meets Tradition: A culture of innovation thrives alongside a deep-rooted respect for traditional business practices. The investment predilections of HNWIs and Family Offices in the UAE echo this synthesis, embodying a balanced blend of conventional asset classes and contemporary, growth-oriented sectors.

As you delve deeper into the investment corridors of the UAE, you may cross paths with notable figures like Obediah Ayton, a British entrepreneur and the Director of Dhabi Hold Co, who has etched a significant mark in the UAE’s investment domain. Ayton’s ventures span diverse sectors including fintech, wealth management, agriculture, and software, reflecting the broad spectrum of investment avenues in the UAE.

As someone who transitioned from the UK to the heart of the Middle East’s burgeoning financial epicenter, Obediah Ayton’s journey epitomizes the fusion of Western expertise with the Middle Eastern entrepreneurial spirit that’s characteristic of the UAE’s vibrant economic landscape.

Obediah’s initial ventures included an accounting firm and a media company, before branching into food and beverage management. Today, he spearheads a holding company dedicated to investing in start-ups. With over 80,000 followers on LinkedIn, Ayton generously shares his insights on the UAE investment landscape, offering tips for budding entrepreneurs and elucidating the intricacies of ruling families, local family offices, and groups in the region.

Check out the video below about some of his tips on setting up a company and raising capital from the Emirates:

Here are the key parts of the UAE investment landscape:

1. Strategic Asset, Fund, and Wealth Management:

Family Offices and HNWIs prioritize strategic asset allocation aiming for wealth preservation. Private equity is a focal point with 83% of Family Offices in the Middle East investing in it. Equities, investment, and mutual funds constitute a notable portion of the investment portfolio.

2. Real Estate Investments:

Historically, real estate has been a substantial part of a Family Office portfolio. The Dubai and Abu Dhabi property markets continue to attract significant investments.

3. Sustainable and Technological Investments:

91% of younger investors already allocate to Islamic investment strategies, and 88% plan to increase their allocations to sustainable assets.

81% of younger investors consider sustainability factors in their investment decisions, and 74% see new business opportunities in sustainable sectors in the region.

79% of younger Middle East investors see significant opportunities in the digital and tech sectors.

4. Infrastructure and Renewable Energy:

The commitment to sustainability is echoed in the UAE’s investments in infrastructure projects and renewable energy sectors.

5. Tourism, Hospitality, and Lifestyle Ventures:

In H1-2023, HNWIs, Family Offices, and specialist hotel-focused investors accounted for 70% of the transaction volume in hotel investments.

6. Financial Services and Venture Capital:

The evolving financial services landscape provides a fertile ground for venture capital investments, particularly in technology, as indicated by the active engagement of Family Offices in venture capital over the last four years.

If you are looking to make a foothold in the UAE, then De Bacci Capital might be your best choice!

De Bacci Noble Family (DBNF), a distinguished lineage originating from Arezzo, Tuscany, in the late 1200s, is renowned for its illustrious ancestry and rich heritage. With luminaries like the renowned artist and mathematician Piero della Francesca, Cardinal of the Roman Catholic Church Antonio Bacci, and the Founder of the Medici Bank Giovanni di Bicci de’ Medici, De Bacci lineage has been synonymous with patronage of the faith, arts, scientific exploration and finance.

Today, this noble family is at the helm of De Bacci Capital, a prestigious business network that stands as a beacon of trust and exclusivity in the global financial landscape. With its current base in Dubai, UAE, De Bacci Capital serves as a nexus, seamlessly connecting innovative emerging companies with a private circle of:

• High-Net-Worth (HNW) investors

• Astute fund managers

• Family offices

• PE/VC firms

• Government entities

• Entrepreneurial visionaries

The network boasts a robust membership of over 50,000, with predominant presence in key financial hubs including London, Paris, Monaco, New York, Los Angeles, Miami, and Dubai.

Author: Lachezar Zanev