Although venture capital financing has long served as an important engine for growth in developed nations in North America and Europe, and is now prevalent in major emerging markets such as India and China, it has been noticeably absent in the GCC and MENA regions, despite an abundance of available opportunities.
This can be attributed to the challenges inherent in venture capital investing, the scarcity of the required technical knowledge and expertise in this field, and the inability of many regional financial institutions to adjust their scope of business, strategic objectives, and human and technical resources, to embrace such non-traditional investment activities.
VCBank is firmly convinced that there is a unique investment opportunity for venture capital based investment banking in the GCC and MENA regions. Today, there are numerous fundamentally strong, entrepreneurial companies with sound business models, but which are undervalued and lack the necessary resources for growth and expansion.
The venture capital banking concept pioneered by VCBank is the first initiative of its kind that targets such a niche market in the region. The Bank aims to deliver high potential returns, fully managed risks, and significant co-investment opportunities, which are fully compliant with the rules and principles of Islamic Sharia.