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Anyone who follows football will be aware of the piles of cash flowing from the Middle East to the game.
From buying clubs like Manchester City and Paris Saint-Germain to hosting the 2022 World Cup, Middle Eastern nations have become increasingly visible in the sport. These nations appear to be planning for a future where their economies no longer rely on oil alone, and cultural power via sport is one aspect of this.
Investments in tech are another way countries like the UAE and Qatar are looking to diversify, and today’s featured story dives into how they’re deploying their capital.
Today we look at:
- A family affair for these Middle Eastern investors
- Singapore-based ticketing startup GlobalTix scoops up funding
- Other newsy highlights such as chip makers like Nvidia facing US export caps and Indian deep tech robotics startup Perceptyne scoring funding.
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From the UAE with oil money
Image credit: Timmy Loen
Governments in the oil-rich Middle East are working to reduce their dependence on crude oil, including by enacting laws to boost interest in family offices.
While startups aren’t their favorite target for investment, there are some Middle Eastern family offices active in the tech scene.
- A matter of preference: Family offices in the Middle East prefer investing in assets that provide more predictable returns than what tech startups tend to provide, according to Anand Prasanna, managing partner at Dubai-based VC firm Iron Pillar. Those that do back startups go for firms in the US.
- From oil to AI: Unsurprisingly, Middle Eastern money has flowed into the AI sector in recent years, as has money from all corners of the Earth. MGX, the investment firm of the government of Abu Dhabi, joined OpenAI’s latest fundraising round, for example, and Silicon Valley has been courting investment from the Middle East as well, The Washington Post reported.
- Boots on the ground: Few Middle Eastern family offices have invested in Southeast Asian startups, but interest in the region could increase. VC firm Golden Gate Ventures opened an office in Qatar last year, and partner Michael Lints says fund managers from Southeast Asia need to spend time in the Middle East to boost local investors’ interest in Southeast Asia.
Read more: Mapping the Middle Eastern family offices investing in tech
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