Dubai royal family to back new venture capital to invest in Korean startups

[Photo by MK DB]

A new venture capital (VC) firm, backed by the Dubai royal family, has been established to invest in South Korean small and medium-sized enterprises (SMEs) and startups.

The venture capital will focus on companies with growth potential in future industries such as information technology, biotechnology, and renewable energy, providing seed funding and comprehensive support for expansion into the Middle East.

Kim Eun-soo, co-chief executive officer of AK Venture Partners, who recently visited Korea as part of a UAE economic delegation, shared in an interview with Maeil Business Newspaper on Wednesday that a cooperative atmosphere has been fostered between the Korean and UAE governments to support and nurture startups.

“We have partnered with the Dubai royal family, who have shown significant interest in Korea’s diverse cultural content and advanced technology, to intensively support Korean SMEs and startups looking to expand into the Middle East,” Kim said.

Kim, a specialist in Arab affairs, has been active as an accelerator, facilitating local investments in sectors such as healthcare and AI-based digital content and gaming.

Kim co-founded AK Venture Partners in Dubai in February with Sheikh Ahmed Bin Mana Al Maktoum, a member of Dubai’s ruling Al Maktoum family and vice chairman of Wafi Group, a real estate development company established in Dubai in 1973.

Sheikh Ahmed has consistently invested in technology-driven startups worldwide through MKM Holdings, owned by his father Sheikh Mana, and his own AMKM Investments.

Korean companies that have ventured into the UAE and the broader Middle East have often faced challenges due to a lack of local networks and difficulties in securing follow-up investments.

Recognizing this need, AK Venture Partners plans to provide substantial network support in Dubai and offer individual investments of up to several hundred million won per company. The firm aims to establish an initial fund of $10 million to directly invest in ten Korean SMEs and startups.

It will also assist in setting up joint ventures in Dubai and offer consulting services for market entry and expansion in the UAE and broader Arab region. A Korean branch of AK Venture Partners is slated to open in July to facilitate these efforts.