Du in $50m push to expand regional startups

Emirates Integrated Telecommunications, the operator of the Du brand in the UAE, has launched a $50 million venture capital fund aimed at scaling regional startups across the Gulf. The vehicle, branded Du Ventures, will be managed by Abu Dhabi-based Shorooq and will target companies in fintech, artificial intelligence, cybersecurity, cloud, loyalty, gaming, enterprise software and customer service technologies in the UAE and other GCC countries.

"Through Du Ventures, we are investing in technologies and founders that align closely with our strategic priorities," Du CEO Fahad Al Hassawi said in a statement published on the Dubai Financial Market.

Context and details

Du said the fund is intended to accelerate the commercialisation of emerging technologies by leveraging the operator’s scale, infrastructure and enterprise reach. The announcement comes amid a broader shift in the region where Gulf institutions and sovereign wealth funds increasingly treat venture capital as a core holding rather than an alternative asset class, analysts told AGBI.

• Fund size: $50 million
• Manager: Shorooq (Abu Dhabi-based)
• Target sectors: fintech, AI, cybersecurity, cloud, loyalty, gaming, enterprise software, customer service technologies
• Geography: UAE and other GCC countries

Shorooq, which Du tapped to manage the fund, currently manages more than $500 million in assets according to its website. The firm recently participated in the $1 billion funding round for Advanced Machine Intelligence Labs, a Paris-based AI startup, in March — a sign of its growing activity in the AI and deeptech space.

Analysts and industry figures quoted by AGBI have framed the move as part of a race among Gulf capital allocators to secure early access to emerging tech. "This is no longer an early stage experiment. This is capital chasing inevitability. Venture capital is evolving from finding the next big thing to getting access before [everyone else]," Gautam Jain of SC Ventures, the venture-building arm of Standard Chartered, said.

The fund launch is backed by Du’s recent financial performance. In April the operator reported quarterly revenues up 7 percent year-on-year to AED4.1 billion (about $1.1 billion) and a 16 percent rise in net profit to AED834 million. The UAE sovereign wealth investor Emirates Investment Authority holds a 50.1 percent stake in Du. The company’s stock was trading at AED11.46 on Wednesday afternoon, up nearly 16 percent year-to-date.

Outlook

Du Ventures positions the telecom operator to play a more active role in shaping the technology stack used by regional enterprises and consumers, while giving its corporate backer early-stage access to innovations aligned with its connectivity and enterprise services. With Gulf institutions treating venture capital as a strategic allocation, the fund could serve both as a commercial pipeline for Du and as a route for founders seeking distribution and scale across the UAE and broader GCC markets.