DIEZ doubles its Oraseya Capital startup fund to Dh1 billion

The Dubai Integrated Economic Zones Authority (DIEZ), which runs Dubai Silicon Oasis, Dubai Airport Freezone and Dubai CommerCity, is doubling the venture capital fund of its investment arm, Oraseya Capital, from Dh500 million to Dh1 billion.

The most the fund can put into one company rises from $3 million to $6 million, about Dh22 million, so it can join larger rounds and back companies at later stages, beyond Series B, while still investing early. It can also now invest in companies outside the UAE that matter strategically to the country. Its priority areas are healthcare, sustainability, fintech, digital assets and artificial intelligence.

Since it launched in November 2023, Oraseya Capital says it has built a portfolio of 66 active companies, about 25 new investments a year. According to the MAGNiTT data platform it has been the most active investor in the UAE by number of deals for three years running. Its portfolio companies have raised $1.1 billion in total, and their annual recurring revenue has grown from about $180 million when it invested to $387 million, of which $140 million comes from their UAE operations.

For founders, the change means a Dubai-backed fund can now write cheques up to about Dh22 million and follow companies into later rounds. Startups can still apply to its SANDBOX programme, which gives selected companies $150,000 each, and its six-month LAUNCHPAD programme. The authority has not published new application dates.