ASTF plans to launch $15m fund to promote technological innovation

Dubai: Sharjah-based Arab Science and Technology Foundation (ASTF) is planning a $15 million venture capital fund to encourage technological innovation in the Arab world.

The fund, which will disburse an average of $500,000 to emerging start-ups over its seven-year life-span, will be formally unveiled at the Fifth Forum on Investing in Technology in Jordan in December.

Abdullah Al Najar, president of ASTF, said one of the goals was to "increase investments in Arab technology start-ups by providing Arab investors with a diverse and well selected group to invest in."

Farhan Kaladeh, a project manager at the foundation, added, "If investors don't see success stories they will continue to invest in real estate, to invest in financial markets. Our goal to them is to present success stories."

Competition

The foundation also announced its Second Annual Arab Technology Business Plan Competition in partnership with Intel, which is being launched to promote regional technology businesses. Winners will receive over $100,000 and will also be announced at the investment forum in Jordan.

Other categories include a competition for student groups from Arab universities, with $7,500 awarded to the winning team. Additional details are available on the ASTF website.

"The idea is to help develop a more competitive IT workforce capable of driving innovation and economic growth in the region," said Bassem Nasser, the regional higher education manager for Intel.

According to Kaladeh, the Arab world's level of technological innovation remains in the infant stages, and has several hurdles to be overcome.

"Our target is to make success stories in the Arab world," he said. "The problem is that we do not have an ecosystem that supports innovation and support establishing companies."

Training

"Through this competition initiative and the venture capital fund, we will have training programmes and specialised events to bring investors and groups together into an ecosystem, with the help of companies like Intel," he added.

Turning brain drain into 'brain gain'

Organisers of a technology competition to promote Arab entrepreneurs acknowledge that the winners may need to leave the Arab world to be successful.

This paradoxical conclusion was conceded as a practical reality by the Arab Science and Technology Foundation (ASTF), which along with Intel is sponsoring the Second Arab Technology Business Plan Competition. ASTF also plans to unveil a $15 million venture capital fund for Arab science and technology firms.

The ASTF competition requires winning firms to conduct their research and development in the Arab world.

Beyond that, they are free to operate their businesses wherever they choose.

The winner of its last competition is a company called Astroleap, a Jordanian firm that operates in California where it offers its location-based technology to mobile phone providers.

"The whole intention of ASTF when it was created by 400 scientists was that we need to turn this brain drain into brain gain," said Abdullah Al Najar, ASTF president.

"This is what we want, and this is the best model," Al Najar said of the Astroleap business plan. You are the developer, and you own the know-how. You don't sell in a very small market, which is the Arab world - you sell all over. They are testing the market, and soon it will be all over the world, including here."