ADQ and Turkey's wealth fund form $300m fund to invest in tech start-ups

ADQ TWF will invest in companies developing new technologies or improving existing technology in sectors such as energy, health care, food, agriculture and others

The new fund will enable ADQ to tap into fast-growing start-ups in Turkey. Bloomberg

Abu Dhabi's holding company ADQ and Turkey Wealth Fund formed a new $300 million technology fund that will focus on investing in start-ups in Turkey, further deepening the UAE's investment ties in the country.

Turkey Technology Fund (ADQ TWF) will invest in companies developing new technologies or improving existing technology in sectors that include energy and utilities, health care and life sciences, food and agriculture, mobility and logistics, financial services, and education, the Abu Dhabi Government Media Office said on Thursday.

"Turkey is an attractive market with substantial opportunities for investing in vital sectors that align with our areas of expertise," said Mohamed Alsuwaidi, managing director and chief executive of ADQ.

"By providing access to the national and regional champions in our portfolio, we will help to unlock even greater value for these companies and funds with high-growth potential.”

ADQ TWF's launch comes as the Abu Dhabi holding company sealed agreements with several Turkish investment entities to boost the development of priority sectors in both countries last year. ADQ signed partnership deals with the Turkey Wealth Fund, Turkey Investment Office and CCN Holding, the Abu Dhabi media office said at the time.

The two countries have been deepening their trade and investment ties since the visit of Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, to Turkey last year. During the visit, the UAE also announced a $10 billion fund to support strategic investments in Turkey, including in energy, health and food.

ADQ TWF was launched by Mohamed Alsuwaidi, managing director and chief executive of ADQ, and Arda Ermut, chief executive and board member of TWF. Photo: TWF

“This fund marks the first step taken by the TWF as part of its vision to build a broader $1 billion technology platform, to become the reference technology fund accelerating technological growth in Turkey and driving growth in strategic technological sectors critical to Turkey’s development," said Arda Ermut, chief executive and board member at TWF.

The move will also enable ADQ to tap into fast-growing Turkish start-ups, the statement said.

Turkish start-ups accounted for 30 per cent of all venture capital transactions closed and more than half of all capital put into start-ups across the Middle East and North Africa, Turkey and Pakistan in 2021, ADQ said.

The Turkish venture capital ecosystem reached its highest quarterly, half-yearly and yearly level of capital raised by local start-ups in late 2021, it said.

"The Turkey Technology Fund will create a unique added value for our country with its volume and international direct investment dimension and the multiplier effect it will provide for other technology investments,” Mr Ermut said.