Alpha Dhabi Holding, a subsidiary of Abu Dhabi’s International Holding Company, has made a Dh9.2 billion ($2.5bn) commitment to invest in a venture fund that will focus on investments in growth-stage companies globally. The Alpha Wave Ventures II, launched by Chimera Capital and Alpha Wave, will receive a capital contribution of Dh2.6bn and undrawn capital commitment of Dh6.6bn, which will be drawn down over the investment period of the fund. Alpha Dhabi revealed the move in a statement to the Abu Dhabi Securities Exchange, where its shares are traded. With its global remit, the investment vehicle is prioritizing private companies with a particular focus on growth-stage businesses across sectors including artificial intelligence, FinTech and life sciences.
The Middle East’s FinTech sector has also been growing at a compounded annual rate of 30 per cent, estimates by the Middle East Institute suggest. By the end of this year, more than 800 FinTech companies operating in segments, including payments, InsureTech and cyber security, are expected to raise more than $2bn in venture capital funding. Alpha Dhabi, previously known as Trojan Holding, has grown into a regional conglomerate. It was listed on ADX in June last year and has been on an expansion spree since then. Last year, the company acquired the entire share capital of Murban Energy, a 70 per cent stake in Mawarid Holding Investment and 100 per cent share capital of Sublime Commercial Investment, through which it holds a stake in Aldar Properties, Abu Dhabi’s biggest developer.