The new technology hub launched in Abu Dhabi over the weekend is expected to attract more than 100 startup companies over the next few years. The hub, called the Hub 71, was established with an investment of over US$270 million from various investors. The facility hopes to attract companies from different sectors including businesses in transportation, cyber security, food systems, financial services, and life sciences.
The tech hub, which is located in the Abu Dhabi Global Market Square on Al Maryah Island, is a joint project by Microsoft, SoftBank's Vision Fund, and the Mubadala Investment Company. The firms have all partnered in the initiative to boost the startup ecosystem in the country's capital city.
One of the first companies that will call the new facility their home will be companies funded by Softbank's investment fund. These companies are expected to occupy the various office spaces in the next six months.
According to the head of the Mubadala Ventures, Ebrahim Ajami, the US$270 million investment under the Ghadan 21 initiative will be split into two parts. Half of the money will be used to invest in new startup companies, while the other half will be used to support these companies through different programs that will include housing, health insurance, and office space allocation for new employees. There are also programs that can assist employees in processing their visa to work in the country. The programs are meant to make living and working in Abu Dhabi much easier for employees of new startup companies.
Mubadala Investment Company, through its tech arm Mubadala Ventures, has recently invested heavily in tech startup firms across the globe. The company, which has assets of over US$225 billion, invests in companies both directly and through various global funds. According to Mubalada Ventures, it will basically be doing the same thing in Abu Dhabi, as it does see great potential in the country's various startups.
Mubadala also recently made a US$15 billion commitment to Softbank's Vision Fund. The US$100 billion investment fund was launched by Japan's SoftBank Group and is mainly focused on providing financial support to innovative tech companies around the world.
Unlike other tech hubs, Hub 71 will be forming different partnerships across the region to cultivate the establishment of tech startups. The hub will reportedly be working closely with various universities and government agencies across the region. Through its initiatives, the facility also hopes to work with various venture capitalists in order to give support where it is most needed and most profitable. Mubadala hopes to target businesses that can positively impact worldwide commerce, trade, health care, transportation, and finance, which is why it is working with regulators to help in the establishment of these companies.
