Luxembourg–European Investment Bank (EIB) Global, a branch of European Investment Bank, announced on Monday that it will provide $27 million participation in the $150 million Middle East Venture Fund.
This is the largest ever venture capital engagement by the EIB in the Middle East.
The new venture capital fund launched by Middle East Venture Partners (MEVP) aims to increase targeted equity investment in high-growth e-commerce, health, and education technology companies across the Middle East and Pakistan.
“EIB has unique global experience of ensuring that entrepreneurs and growth companies access finance. We welcome EIB’s investment that will ensure that growth companies across the Middle East can grow, harness new business opportunities and create thousands of skilled jobs,” said Walid Hanna, Founder and co-CEO of MEVP.
Venture capital investment backed by the new fund will enable local companies across the Middle East and Pakistan to harness digital business opportunities unlocked by the pandemic and is expected to support creation of more than 8,000 jobs.
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“The European Investment Bank recognises the unique role of venture capital and works with leading venture capital partners to unlock high-impact targeted investment that boosts economic growth and ensures that entrepreneurs benefit from growth and innovation best practice”, said Gelsomina Vigliotti, EIB’s Vice President.
Vigliotti added that the fund will enable local companies to grow; build on new opportunities for digital commerce, education and healthcare services highlighted by the COVID-19 pandemic; and deliver thousands of high-skilled jobs across the region.
“The European Union is committed to private sector development in Egypt and across the region. This new cooperation between EIB Global and Middle East Venture Partners will accelerate skilled job creation and increase the role of technology driven business in the years ahead,” said Ambassador Christian Berger, Head of the European Union Delegation to Egypt.
Local innovation companies will benefit 12 years of successful technical and sector investment and hands-on guidance shared by MEVP and the new initiative will scale up long-term investment in early and growth stage companies across the region.
Over the last 12 years, Middle East Venture Partners has successfully backed more than 60 technology start-up companies across the Middle East.
