UAE MoF Launches Mohammed Bin Rashid Centre for Government Innovation Fund Accelerator

by Zaara 09, Sep 2021

UAE MoF Launches Mohammed Bin Rashid Centre for Government Innovation Fund Accelerator

The MBRIF is a federal initiative planned and initiated by the UAE Ministry of Finance ( MoF). The project aims to recognise and promote high potential developments both within the UAE and abroad and seeks to enhance the growth potential of innovative enterprises and shape the future of the UAE economy. MBRIF reflects on the seven areas of the UAE National Plan for Innovation: Space, Travel, Education, Infrastructure, Power, Renewable Energy and Health.

The Mohammed Bin Rashid Innovation Fund (MBRIF) is driving changemakers to push their inventions to the next level. It is designed for innovators and entrepreneurs who see the world differently and who are there to advance innovators towards gaining size, consumer traction and, eventually, company growth.

The MBRIF does not believe in a one-size-fits-all initiative to help entrepreneurs and innovators. MBRIF has strategically developed two projects to meet the specific needs of each innovator, in support of our partner and operator, the Emirates Development Bank.

Our Ambition to Drive Innovation -

By making the UAE the Home of Global Creativity

Our mission is to bring high potential innovators from around the world to the UAE and change the innovation landscape.

By helping Homegrown Inventions to Flourish

Developers empower local innovators to thrive and fulfil their development goals, both in the UAE and abroad, by providing them with resources and partnerships customised to their needs.

Instilling a Spirit of Innovation in the Country

To have a lasting effect on the UAE, we agree that it is essential for innovators to become part of the culture of the world, its youth and its people.

The MBRIF is funded by the federal government, serving innovators through our two excellent programmes; the Innovation Catalyst and Guarantee Scheme, under one umbrella offering end-to-end mentoring and funding assistance.

To further facilitate innovation practises by tailored funding strategies and market planning tools, the Guarantee Program provides innovators with competitive government-backed financing.

The Innovation Accelerator programme offers innovators access to the world's best advisors customised to their individual needs and delivered unique perspectives and guidance about how to develop their companies.

Currently, the MBRIF consists of two programs; these are:

Innovation Accelerator

The MBRIF Accelerator, funded by the federal government, recognises, equips and offers programmes targeted to the highest potential innovators to succeed. Unlock its full potential with the MBRIF Accelerator, a unique innovation-driven offering built on partnership and delivered by an ecosystem of global experts and collaborators.

The Innovation Accelerator initiative was introduced in 2018 to offer non-financial funding to address the needs of the innovation system, creating a culture of innovation in the country. It enhances the vital capacity of innovators from around the world – to recruit talent and reflect on the substantial positive effect it has on the economy of the UAE.

Guarantee Scheme

The MBRIF Guarantee Policy allows you access to financial assistance through adjustable government-backed loan guarantees so that you remain ahead of the game. Grow your firm with investment options that do not dilute your equity, allowing you to keep leverage over the ownership and trajectory of your company while scaling it to new milestones.

The Guarantee scheme was established in 2016 to help innovators and the startup sector by providing an innovative tool to address their needs. The Fund is one of the pioneering funding solutions in the region, as it promotes the mechanism of securing affordable financing for innovators by offering government guarantees to commercial banks and financial institutions. It is to encourage and facilitate the issuing of loans to emerging creative firms. MoF shall pay the debts owed on behalf of the innovators in the event of default on loan, as the purpose of the initiative is to close the AED 2 billion funding gap.

It offers access to financial assistance in the form of government-backed loan guarantees without diluting equity. The Guarantee Scheme, a federal government-backed initiative funded by the Ministry of Finance, is about bridging the funding gap without cutting your money. It offers financial assistance through a government-backed loan, without taking equity, meaning you can expand your company faster. It seeks to administer and run the Fund and its services under a single national umbrella.

The Fund seeks to create a framework that enhances creativity and forms the future economy of the UAE by embracing innovation and developing an atmosphere that encourages and nurtures innovation. MoF runs the Fund to foster creativity in the UAE.

Mohammed Bin Rashid Innovation Fund Accelerator, a public-private initiative to help local and foreign innovators, was unveiled by the UAE Ministry of Finance at a special event in Dubai Opera in the presence of HE Obaid Humaid Al Tayer, UAE Minister of State for Financial Affairs.

It is known as a non-profit organisation that does not charge equity or performance and membership dues. MBRIF is available to businesses that have passed past the design stage and are operating now internationally.

The Fund supports resident individuals and businesses (of all sizes) registered in the UAE, provided they deliver creative and groundbreaking ideas. These concepts can involve technical solutions, products, services or processes. The qualified applicants must register their project as intellectual property of the person or organisation involved, and establish the initial stage of the project.

In 2016, an agreement between the MoF and the Emirates Development Bank (EDB) was signed to host and run the Mohammed bin Rashid Innovation Fund via the EDB. The goal of the agreement is to enable the role of the Fund in facilitating the transformation of the UAE to a knowledge-based economy, thus ensuring the country's stability and sustainability.

Besides, MoF has signed an agreement with the National Bank of Ras Al Khaimah (RAKBANK) to offer the requisite guarantees to creative entrepreneurs to promote access to business loans to fund their ventures and to help them transform their innovations from concept to execution.

The Fund's vision is to promote innovation efforts by tailored financial risk reduction and market creation resources directed at sustainable growth.

Goals

  • Bridge the funding gap between innovation ventures
  • Innovative goods and services in the UAE are accelerated economically in domestic and foreign markets.
  • Promote the prestige and footprint of the UAE on the international innovation scene
  • Boost the economic performance of the UAE and increase its national development capacity
  • Stimulate public-private partnership on technologies
  • Fund the National Innovation Plan and deliver on the UAE's growth vision to be among the ten most innovative countries worldwide by 2021.

Funding Condition

  • The project concept must be original and creative, whether a technological idea, process, product or service licenced as intellectual property of its respective creator, and develop the initial stage of the project.
  • Applicants must be a resident, person or registered company in the UAE. Applying is not limited to companies in the Emirati; it also includes all companies in the country, providing that they are registered in the UAE.
  • Applicants must create a long-term market growth plan backed by a feasibility report to apply for the grant and receive sufficient funding.
The fund will focus on financing projects within the seven major sectors of the National Innovation Strategy, namely:
  • Education
  • Transportation
  • Water
  • Technology
  • Space
  • Renewable Energy
  • Health
  • Space

The goal of the initiative is to discuss the future, keep up to date with the latest technologies and help emerging talents who aspire to set up companies who contribute to the improvement of the UAE by achieving the objectives of the UAE Vision 2071.

In brief, you can see that the nation has taken a range of steps to strategically plan the budget of the ministry of finance and develop itself as one of the strongest countries to take a holistic view. Some business owners and developers choose to take advantage of these benefits by integrating their business into the UAE. By starting your company in the field, you will end up applying a foreign brand tag to your firm. The government is in the process of creating a country as one of the world's business-friendly countries. It is preferable to go ahead with the advice prescribed by an experienced company analyst.

Commitbiz Consultants is one of the best business consultants in the UAE who has successfully assisted numerous business practitioners and investors in making their dream come true. Our industry consultants are well-experienced in business processes and can direct you at any step of the way, providing tailored solutions to suit your business needs. If you have a hope of incorporating a company into the UAE, now is the perfect time to kick off. Do contact us today-we’d be delighted to assist you.