The United Arab Emirates (UAE) and South Korean venture capital (VC) firms are collaborating to launch venture investments worth billions of dollars. The plan is to invest up to $1 billion in South Korean startups, which is the first step in fulfilling the UAE’s $30 billion investment pledge made to the South Korean government last year.
On May. 7, the establishment of a joint venture investment company with LB Investment in Korea was confirmed by the UAE through the ‘AIM Global Foundation’. To attract funds from institutional investors or Limited Partners (LP) in the UAE, they have also decided to create a venture fund of up to $1 billion managed by the joint venture company. The board of directors for the joint investment company will comprise fundraising experts, fund management experts, and Middle East expert executives.
The AIM Global Foundation is reputed to be a channel for ‘oil money’. It organizes the biggest investment forum in the Middle East named ‘Annual Investment Meeting (AIM)’, annually. The organization’s committee comprises the UAE Minister of Foreign Trade and other officials from various departments.
AIM gained fame particularly in 2011 when Elon Musk, CEO of Tesla, secured investment for business expansion in Tesla’s early days. This year’s AIM, which runs from May. 7 until May. 9, is expected to be attended by 12,000 institutional investors and entrepreneurs worldwide.
LB Investment secured its position as a joint venture company with the AIM Global Foundation managing UAE’s venture investment funds at this AIM event. Although the UAE is recognized as a major player in venture investments sought after by global famous VCs, it has never before embarked on establishing a joint venture with a foreign institution.
The UAE’s decision to establish a joint venture with LB Investment is seen as an initial step in investing in Korea. The move comes after the UAE and South Korea strengthened their relationship to a ‘special strategic partnership’ during President Yoon Suk-yeol’s first state visit last year. As part of the partnership, the UAE announced plans to invest around $30 billion in Korean companies.
Meanwhile, LB Investment is a first-generation domestic VC in Korea with over 1 trillion won in managed assets (AUM). It has discovered domestic and international unicorns (unlisted companies valued at over $1 billion), such as HYBE, Pearl Abyss, and Tantan (a Chinese dating app), achieving a return of over 17 times.
Park Ki-ho, the head of LB Investment, also serves as the chairman of the Korea Core Industrial Technology Investment Association (KITIA). AIM Global Foundation chose LB Investment as a partner due to its proven investment performance and verified international investment capabilities.
Dawood Al Shezawi, Chairman of AIM Global Foundation, said, “This partnership with LB Investment will open a new chapter of cooperation in the global VC industry,” adding, “We will invest strategically to bring about positive impacts on the global economy and society.”
