When I think about the future of cities, it’s clear that the real estate industry is standing at a major turning point. The intersection of technology, sustainability, and real estate isn’t just a trend, it’s one of the most exciting frontiers of innovation today.

In the UAE, especially, we’re seeing how digital transformation is no longer a “nice to have”, it’s becoming the foundation for how urban life will evolve. PropTech is already doing more than just streamlining paperwork or improving building management. It’s starting to reshape what property ownership means, who gets to participate, and how we align real estate with broader social and environmental goals.

We’re now seeing AI systems that reduce carbon emissions in real time, and blockchain platforms that make property transactions faster, safer, and more inclusive. These are no longer future ideas, they’re tools being deployed today to help Dubai (and the wider region) meet its ambitious goals for sustainability, livability, and economic diversification.

Of course, challenges remain, especially around data security, regulations keeping up with innovation, and the need to reskill workers for a tech-driven industry. But the momentum is there, and it’s building fast. Personally, I believe the countries and companies that move early and invest wisely in PropTech will not just stay ahead, they’ll help define the next generation of urban living.

The secondary market is no longer a single product. It is a toolkit. In practice, three buckets are most relevant to a MENA tech mandate: direct secondaries, structured secondaries and M&A-linked secondaries.

“Direct secondaries are straightforward share purchases in private companies, usually from existing shareholders such as: Early angels, seed funds and family offices whose fund lives are maturing, Employees with vested options or ESOP allocations, Founders rebalancing personal exposure or simplifying cap tables.” — Key Capital

Common use cases:

• Founder liquidity without sending a “selling founder” signal
• Founder or company buy-backs of early investors at a discount
• ESOP and option clean-ups where unexercised options are warehoused and monetised
• Concentrated exposures (for LPs or founders) that need de-risking without a full exit

Globally, GP led continuation funds are now the fastest growing part of the secondary market, allowing GPs to roll their best assets into new vehicles with fresh capital while giving existing LPs a choice between liquidity and rollover.

The final bucket is secondary liquidity embedded in M&A or strategic transactions. These can take several forms:

• Partial or full sale of a shareholder’s stake as part of a strategic acquisition
• Share-for-share deals where existing investors roll into a combined entity
• Pre-IPO secondaries where existing shareholders sell a portion of their stake to new investors in the run up to a listing

In global markets, as exits have slowed, sponsors increasingly use GP led secondary processes to “re-price” trophy assets, extend hold periods and bring in new long-term capital. 

“In MENA, we already see a similar pattern: over the last two years, our analysis indicates more than nine hundred million dollars of secondary transactions across regional champions, often in conjunction with late stage rounds or strategic investments.”  — Key Capital 

The MENA ecosystem now has the depth to support this: MAGNiTT’s research, highlighted in 2017, already pointed to around 3,000 startups across the region, and more recent database counts show more than 5,500 startups being tracked today. Building on those datasets and our own mapping of funded companies, we estimate there are now roughly three thousand venture-backed and venture-scale companies regionally, more than five hundred that have reached Series A and beyond, and over twenty leading regional funds with vintages maturing in the next four years. This is the moment to use secondaries as a deliberate value-creation tool for both investors and founders.

Secondaries are not just another sleeve in an alternatives allocation. In a maturing MENA venture market, they are the missing recycling mechanism that turns one generation’s paper winners into the next generation’s funded innovation.

As we chart into the second half of 2025, here are the learnings we are taking on to sharpen our investment playbook, fortify downside protections, and capitalize on the UAE’s most promising growth opportunities:

1. Doing more with less using an integrated Tech infrastructure
   We are building an integrated tech stack to ensure best in class governance, process optimization and data driven decision making as we look to engage more deeply with the GPs and startups in our direct and indirect portfolio.
2. Tracking Emerging Sector Momentum in The D33 Economic Agenda
   FinTech remains the region’s magnet for capital, but through DFDF’s Fund of Funds lens, we see early signs of rotation into D33-aligned sectors such as AI-native PropTech, ClimateTech, LogisticsTech and HealthTech. By backing both pan-regional and hyper-specialist fund managers, DFDF is well positioned to capture these waves.
3. Fund Lifecycle Management
   Anticipating extended fund cycles, we will pace follow-on commitments judiciously, retaining dry powder for the startups that demonstrate proven resilience and path-to-exit clarity.
4. Value Creation
   We will continue to work with our portfolio companies to add value through key introductions both locally and internationally as we look to grow UAE companies globally.

In May 2024, DLD launched the Real Estate Evolution Space (REES), its formal innovation strategy. With REES, Dubai aims to become a global leader in proptech. But the vision is holistic: innovation isn’t limited to transactions or platforms. It spans everything from construction tech and energy efficiency to data transparency and tokenization.

Dr. Mahmoud emphasized DLD’s willingness to reimagine regulation in service of innovation. Key initiatives include:

• Real estate tokenization to democratize access to Dubai property markets.
• Energy efficiency tech pilots to reduce service charges (up to 50% of which go to utilities).
• A forthcoming Proptech Hub, backed by policy flexibility, public-private partnerships, and a mandate to support startups with data, regulatory support, and funding.

A recurring theme was the importance of strengthening venture capital at the source. Rather than going direct only, our panelists encouraged further investment in fund-of-fund structures that empower the region’s most experienced VCs — many of whom have spent the past decade patiently building the local ecosystem.

These managers have been through multiple fundraising cycles. They’ve made and learned from mistakes, and now they’re positioned to lead the next wave of innovation. By backing them, we reinforce the foundation that new funds and new founders can build on.

In the middle east region, we’re still early in the private markets cycle. Most activity has historically focused on early-stage, pre-seed, and seed investments. Later-stage capital has been scarce, and that’s a gap we’re now aiming to close.

At DFDF, we see it as our role to plug the capital holes that arise when companies mature beyond the seed stage but still lack access to structured growth or secondary funding. We’re looking closely at late-stage investments and secondary participation as pathways to provide founders and early investors with liquidity options.

But we also acknowledge that structural evolution is needed. The region lacks the regulatory readiness and market infrastructure to support true secondaries at scale. That’s why we’re working with government stakeholders to help define and enable these pathways. Whether it’s policy reform, investor education, or co-creating new secondary platforms, we know this is a long game—and we’re committed to being a part of it.

For founders pitching corporates like Nestlé, Rachid had three words: clarity, motion, and flexibility.

Clarity in articulating the problem you solve — not just flashy tech. Motion in showing that your solution is already gaining traction. And flexibility to pivot based on what the corporate actually needs — not just what you’ve built.

Rachid was clear: Nestlé doesn’t expect founders to show up with all the answers. What they do expect is active listening, a willingness to co-create, and the humility to treat the pitch as a partnership — not a sale.

For founders, that means moving away from polished, static decks and toward dynamic problem-solving conversations. “Don’t try to impress. Try to engage,” he said.

More than once, the conversation circled back to the role investors play as enablers — not just funders. There’s growing recognition that capital is only part of what startups need to thrive. Strong ecosystems are built on infrastructure, mentorship, regulatory clarity, and access to talent.

Many funds in the region are now acting as feedback loops — listening to what their portfolio companies need, identifying systemic gaps, and collaborating with public and private partners to address them. This includes everything from advocating for AI-friendly policies to helping build local talent pipelines.

This ethos of enablement is core to DFDF’s mission. As an anchor fund and long-term ecosystem builder, DFDF operates with the belief that startups succeed not in isolation, but when the environment around them is conducive to growth. That means investing not just in companies, but in capacity.

As the discussion wrapped up, the panelists explored how the UAE can maintain its global competitiveness in entrepreneurship and innovation.

• More Capital Investment – Increasing funding availability, particularly for growth-stage startups, will be essential in scaling promising companies beyond the region.
• Structured Liquidity – Creating more exit opportunities and secondary markets will allow capital to be recycled back into the ecosystem, ensuring continuous reinvestment.
• Government and Institutional Support – Strengthening collaboration between the public and private sectors will help accelerate the sustainable growth of future economy sectors.

As the UAE continues to position itself as a leader in entrepreneurship, venture capital, and technology-driven innovation, it is clear that visionary founders, backed by strategic capital, will be the driving force behind the country’s future economy.

At DFDF, we are committed to backing these founders alongside our funds, and ensuring that the UAE remains a powerhouse of innovation. If you’re building the future of the UAE, we want to hear from you.

A well-known saying echoed throughout the discussion: “Wealth does not last beyond three generations.” This highlights a universal challenge—by the third generation, businesses often fragment due to inheritance disputes, lack of interest, or mismanagement.

Several succession strategies were debated:

• Selective inheritance: Some families limit wealth transfer to a few key members to preserve continuity, though this approach is not universally accepted.
• Separation of business and ownership: Many family enterprises opt to keep professional management in place while family members retain financial stakes.
• Going public: If family businesses struggle with governance, an IPO can provide stability while preserving wealth.

Some participants argued that next-generation members should not feel entitled to leadership roles in the business. Instead, they should earn their place or step aside for professional managers.

Looking ahead, what does success look like?

Faris Al Mazrui envisions a future where the region doesn’t just attract capital but becomes a global innovation magnet—a place where top founders don’t have to be in Silicon Valley to build world-class companies.

Osama Alamri expects to see:

• More sector-focused funds emerging, targeting deeptech, AI, biotech, and other strategic industries.
• A stronger emphasis on early-stage capital, addressing persistent gaps in pre-seed and seed funding.

The underlying message was clear: while MENA’s venture ecosystem has made significant strides, there’s still work to be done—particularly in ensuring continuity of capital, fostering deep sector expertise, and creating a self-sustaining cycle of innovation and investment.

Our interaction with startups is based on collaboration. We work alongside our founders, providing support that enhances their capabilities without supplanting their strategic vision. This partnership approach ensures that our involvement truly augments value, empowering founders to make informed, confident decisions.

With that in mind, trust forms the cornerstone of our direct investment relationships at DFDF. Often, founders approach us having extensively pitched their businesses as flawless and fully optimized. Transitioning from this stage to openly discussing real challenges and needs can be daunting. 

Establishing a strong trust foundation is critical — it encourages founders to be honest and transparent, allowing us to tailor our support effectively and meaningfully. Once we’ve invested in them, we’re very much on the same team.

The next keynote, by Basil Fateen and Saubia Khan from AWS, highlighted the potential of generative AI in enhancing startup growth. Generative AI, a subset of machine learning, focuses on creating new data and has the power to transform various aspects of a startup’s operations.

Startups can leverage generative AI to increase revenue through customer success insights and automated sales decks. On the cost reduction front, coding assistants, knowledge querying for staff, and project planning can significantly streamline operations. It’s essential to understand the token economics of Gen AI and how it can be integrated into your business model to maximize its benefits.