Abu Dhabi's Ghadan Ventures Fund is part of DisruptAD’s broader mission to support 1,000 start-ups over the next five years. Victor Besa / The National
Abu Dhabi's Ghadan Ventures Fund is part of DisruptAD’s broader mission to support 1,000 start-ups over the next five years. Victor Besa / The National
Abu Dhabi's Ghadan Ventures Fund is part of DisruptAD’s broader mission to support 1,000 start-ups over the next five years. Victor Besa / The National
Abu Dhabi's Ghadan Ventures Fund is part of DisruptAD’s broader mission to support 1,000 start-ups over the next five years. Victor Besa / The National

Technology

Abu Dhabi’s Ghadan Ventures Fund invests in medical devices start-up SonoStik

The funding will be used to launch the company's product in the UAE as well as other markets

Alkesh Sharma
Alkesh Sharma

June 03, 2021

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Abu Dhabi’s Dh535 million Ghadan Ventures Fund said on Thursday it invested an undisclosed amount in medical devices start-up SonoStik.

The initial round of funding – also known as a series A round – was led by DisruptAD, one of the region’s largest venture platforms that manages Ghadan Ventures Fund. The entities did not disclose any further details about the investment round.

Abu Dhabi-based SonoStik’s first novel product was the SonoStik Guide Wire Introducer – a US patented and Food and Drug Administration-approved medical device that helps in the successful placement of intravenous catheters in patients.

“This investment represents an affirmation of our view that there is a distinct need for a product like this in the healthcare setting, especially in a post Covid-19 world,” said Richard Fogel, chief executive of SonoStik.

The investment will be used to increase the commercial production and launch the product in the UAE as well as other markets, he added.

The Ghadan Ventures Fund is part of DisruptAD’s broader mission to support 1,000 start-ups over the next five years and create a thriving local community of founders, fund managers, incubators and accelerators in Abu Dhabi.

“We are providing a solution to a real, unmet medical need,”Dr Hawaa Almansoori, founder and chairperson of the start-up, said.

“Making it easier to locate veins for infusions and blood tests will not only make the entire process more comfortable for patients, but will save money and staff time in hospitals and other healthcare facilities,” said Ms Almansoori, who is also a member of the Federal National Council of the UAE.

Start-ups in the Mena region attracted a record $1bn in funding last year, according to data platform Magnitt. Although e-commerce and FinTech were the top sectors toattract the most funding, demand for diagnostics and testing services have made the field of medical technology ripe for deals.

In March, Abu Dhabi's state holding company ADQ agreed to merge its healthcare entities Rafed and Union71 with Dubai-based Pure Health to create a major healthcare support services provider.

Pure Health manages a number of hospitals, medical visa screening centers and has 120 laboratories across the UAE. The company has also partnered with the UAE government to conduct Covid-19 tests on all arrivals at the country's airports.

While you're here
While you're here
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

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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.”

Company profile

Company: Eighty6 

Date started: October 2021 

Founders: Abdul Kader Saadi and Anwar Nusseibeh 

Based: Dubai, UAE 

Sector: Hospitality 

Size: 25 employees 

Funding stage: Pre-series A 

Investment: $1 million 

Investors: Seed funding, angel investors  

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