Middle East Fund Raising 101 — 2021

If you have been having trouble raising money in the United States or Europe, you might want to try your hand in the Middle East. Taking the UAE as an example, the countries Sovereign Wealth is traditionally based off oil and real estate, however 2020 has seen much of this local sovereign wealth been deployed (total $28.5bn) overseas into international businesses.

I believe in 2021, any businesses or individual raising funds will come through the Middle East at least once. It is understandable; there are large investment conglomerates like the Abu Dhabi Investment Authority ($600bn), Mubadala ($400bn) and Investment Corporation of Dubai ($350bn).

Names, brands and technologies are welcome in the UAE — whether it’s electric vehicles, E commerce platforms, top US Venture capital funds and many other international business segments. If you are going to raise funds in the UAE, you have to be prepared to go to the UAE, spending time building a long term relationship. If you have a good name and track record, you are off to a good start in the region, but with a rushed approach from founders or emerging money managers wildcatting for ‘JUST DOLLARS’ in the Gulf region are likely to turn up a lot of dry holes.

You can’t just jump off a plane and rush around doing pitch meetings. In fact, you can barely set up a meeting with most Middles East money managers without a local personal introduction. You have to know someone who can provide a reference, and most people in that position are not about to share their contacts openly to just anyone or anything.

Much as it has become fashionable for USA venture firms or large technology companies to tap local partners in Europe or China, if the US Venture scene wants to tap into Middle East Funds they’re going to have to find locals who can lead them through the high walls that surround the LP’s in the region.

The question founder or GP’s have to ask themselves is whether they have the time. First, you have to spend time understanding a complex geographic and cultural region. Second, you have to figure out if your firm has the time to dedicate to a source of funds that likes to understand more than just a financial return. And Finally, you have to ask yourself if the amount of money you raise will justify your investment if time.

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