(L-R) Abdulla Alsaboosi, UAE ambassador to Australia, Badr Al Olama, acting chief executive of Hub71, Trevor Folsom, co-founder and chairman of Investible, and Ellecia Saffron, founder and managing director of Maysaffron. Photo: Hub71
(L-R) Abdulla Alsaboosi, UAE ambassador to Australia, Badr Al Olama, acting chief executive of Hub71, Trevor Folsom, co-founder and chairman of Investible, and Ellecia Saffron, founder and managing director of Maysaffron. Photo: Hub71
(L-R) Abdulla Alsaboosi, UAE ambassador to Australia, Badr Al Olama, acting chief executive of Hub71, Trevor Folsom, co-founder and chairman of Investible, and Ellecia Saffron, founder and managing director of Maysaffron. Photo: Hub71
(L-R) Abdulla Alsaboosi, UAE ambassador to Australia, Badr Al Olama, acting chief executive of Hub71, Trevor Folsom, co-founder and chairman of Investible, and Ellecia Saffron, founder and managing di

Business

Start-Ups

Abu Dhabi’s Hub71 teams up with Australian early-stage investor Investible

With offices in Sydney and Singapore, Investible’s portfolio includes more than 130 early-stage companies across 10 countries

Alkesh Sharma
Alkesh Sharma

March 07, 2023

  • English
  • Arabic

Abu Dhabi-based global tech ecosystem Hub71 has joined forces with venture capital firm Investible to boost the growth of tech start-ups and early-stage companies in the Emirates’ capital.

Founded in 2014 and with offices in Sydney and Singapore, Investible’s portfolio includes more than 130 early-stage companies across 10 countries and 20 sectors.

Founders at Hub71 will benefit from access to its early-stage funds, valued at nearly Australian $180 million ($120 million) funds under management. They will also gain access to Club Investible, a global network of high-net-worth investors.

“Our partnership with Investible is yet another way of deepening the capital pool for disruptive and impact-driven tech start-ups in Abu Dhabi,” said Badr Al-Olama, acting chief executive of Hub71.

“With more investors channelling funds to early-stage companies, our founders at Hub71 can expand into new markets and attract more investors from Australia and the Asia-Pacific region."

Hub71, backed by the Abu Dhabi government and sovereign wealth fund Mubadala Investment Company, has more than 200 start-ups that raised more than $1 billion in funding from 30 VCs and generated close to $800 million in revenue since its launch in 2019.

The highest amount raised by a start-up after joining Hub71 stands at $1.9 million, while the average funding is $463,000.

The latest agreement was signed by Mr Al-Olama and Trevor Folsom, co-founder and chairman of Investible, in Melbourne, alongside a delegation from the Australia UAE Business Council.

Investible is also a signatory of the net-zero asset managers' initiative, a commitment by international asset managers representing more than $43 trillion to support the goal of net-zero greenhouse gas emissions by 2050 or sooner.

“The scale of the climate crisis presents as much urgency as it does opportunity, and this partnership represents a step towards ensuring the best solutions can accelerate globally, no matter where they are born,” said Rod Bristow, chief executive of Investible.

“We look forward to supporting Asia Pacific founders entering this growing market, and welcoming opportunities for more than 200 companies in Hub71’s ecosystem to bring their innovative solutions to Australia, South-east Asia and beyond."

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Who was Alfred Nobel?

The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

  • In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
  • Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
  • Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.

SM Town Live is on Friday, April 6 at Autism Rocks Arena, Dubai. Tickets are Dh375 at www.platinumlist.net

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2020 Toyota Corolla Hybrid LE

Engine: 1.8 litre combined with 16-volt electric motors

Transmission: Automatic with manual shifting mode

Power: 121hp

Torque: 142Nm

Price: Dh95,900

Groom and Two Brides

Director: Elie Semaan

Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla

Rating: 3/5

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The five pillars of Islam

1. Fasting

2. Prayer

3. Hajj

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

David Haye record

Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4

Moon Music

Artist: Coldplay

Label: Parlophone/Atlantic

Number of tracks: 10

Rating: 3/5

The biog

Name: Shamsa Hassan Safar

Nationality: Emirati

Education: Degree in emergency medical services at Higher Colleges of Technology

Favourite book: Between two hearts- Arabic novels

Favourite music: Mohammed Abdu and modern Arabic songs

Favourite way to spend time off: Family visits and spending time with friends

Updated: March 07, 2023, 12:29 PM
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