The Dubai Future Zone Fund pledges to allocate one billion dirhams to support climate technologies

The Dubai Future District Fund (DFDF) has announced its commitment to sustainability by allocating up to 20% of its one-billion-dirham fund to support climate technologies and innovations, equivalent to 200 million dirhams. This significant move aligns with the directives of the United Nations Climate Change Conference (COP28) on Finance Day, highlighting the crucial role of DFDF in promoting a sustainable and innovative future.

This commitment is in line with the United Arab Emirates’ vision for economic diversification and sustainable development.

The DFDF was launched through an initiative by His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance.

It represents a collaborative effort between the Dubai International Financial Centre (DIFC) and the Dubai Future Foundation (DFF). These commitments reaffirm DFDF’s mission to enhance the investment capital system in Dubai and support global sustainable finance and innovation.

Khalfan Belhoul, President of DFDF and CEO of the Dubai Future Foundation, stated, “The significant allocation of up to 200 million dirhams from DFDF for sustainable technology projects goes beyond a financial commitment; it reflects our ongoing mission to enhance the investment capital system in Dubai.

At the core of DFDF’s operations lies a deep focus on the future of finance and economies; areas we believe are crucial in driving the global sustainability and innovation agenda.”

“This approach aligns clearly with the broader vision of the United Arab Emirates for economic diversification and sustainable development, a vision supported by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, Ruler of Dubai. Our collaboration with DIFC is crucial in this context, allowing us to integrate resources, expertise, and networks to stimulate growth in these vital areas.

Together, we are committed to creating a thriving environment where innovation flourishes, and sustainable finance becomes the cornerstone of our economic framework.”

According to Arif Amiri, CEO of the DIFC and DFDF Board Member, “As we progress towards a more sustainable financial landscape, DIFC remains committed to enhancing access to more sustainable finance. Allocating up to 20% of the Dubai Future District Fund, valued at one billion dirhams, represents our commitment to stimulating growth and supporting technology and innovation projects focused on sustainable development.”

The strategic allocation of a significant portion of the fund for sustainable technology projects highlights DFDF’s steadfast commitment to shaping the future of finance and economies in the Middle East, Africa, and South Asia. This dedication plays a crucial role in advancing the global sustainability and innovation agenda, especially in the context of significant developments in the Middle East.

DFDF aims to collaborate with international partners, charities, and government agencies to incentivize funding for strategic climate technology initiatives, including investment capital activities and market development. In 2021, the UAE became the first country in the Middle East to commit to achieving net-zero emissions by 2050, a groundbreaking move that has spurred further investments in climate technology in the region.

The International Renewable Energy Agency (IRENA) emphasized the region’s current transition rate of 16%, cautioning that the set targets only meet 50% of the necessary renewable energy by 2030 to stay below the 1.5-degree Celsius limit. Nevertheless, Gulf Cooperation Council countries have a significant competitive advantage in solar electricity and green hydrogen production due to their position as one of the world’s top photovoltaic producers.

DFDF’s strategic shift towards climate technology includes vital sectors such as food and agriculture technology, construction materials, and logistics technology. This expansion follows DFDF’s collaboration with the Dubai Future Foundation on the “Future of Food” paper, confirming its ongoing commitment to research and development in the sustainability field.

Sherif Al Badawi, CEO of the Dubai Future District Fund, added, “DFDF allocates a significant portion of the fund to climate technology projects, highlighting our strong commitment to the COP/CIF landscape and confirming our focus on the future of food, logistics, and the broader subject of comprehensive financing. Our commitment goes beyond mere financial investments; it symbolizes our steadfast dedication to reshaping the investment capital system in Dubai.”

“Our commitments align with the vision of the United Arab Emirates for economic diversification and sustainable development, as reiterated by His Highness Sheikh Mohammed bin Rashid Al Maktoum, underscoring our responsibility to the broader global community. By uniting resources and expertise, we aim to intensify our collective impact, stimulate growth, and enhance a flourishing environment where innovation thrives.”