UAE: Monday, December 5, 2005. The Arab Business Angels Network (ABAN), a non- profit organization founded by the Young Arab Leaders during the Clinton initiative in September 2005, has announced the launch of the first annual Arab Business Challenge.

The Challenge will grant the best two business plans submitted by Arab entrepreneurs with the funding necessary to develop their plan into an operating business, with capital funding that can reach up to $1 million for each plan.

As the investment arm of Dubai Holding, Dubai International Capital has been entrusted with the roll-out of ABAN, and will act as the lead angel for the competition, which aims at stimulating regional entrepreneurship and business innovation.

Announcing the launch of the Arab Business Challenge, Sameer Al Ansari, chief executive officer of Dubai International Capital and Young Arab Leader said, "Despite the liquidity of capital markets in the Middle East, young businesses and start-ups often fall into an equity gap where they cannot secure funding to flourish."

'This initiative by the Arab Business Angels Network unleashes young entrepreneurs from the shackles of raising capital through personal finance, family funding or venture capital, and gives them greater confidence to turn their ideas into profitable enterprises that have a positive impact on the economic development of the region.'

Submissions for the Arab Business Challenge will commence in January of 2006, and Arab entrepreneurs between the ages of 15 to 40 are eligible for entry. A website dedicated to the Challenge has been launched, www.arabbusinessplan.com, which provides application details as well as the official business plan form to be submitted.

Strategic partners in the Arab Business Challenge initiative include Price waterhouseCoopers and McKinsey, who will be lending resources in reviewing and evaluating the project plans submitted by young Arabs, as well as contributing with advisory expertise. Al Araybiya satellite channel is the exclusive media partner and will provide special programming based on the initiative. The American University in Dubai (AUD) and American University in Cairo (AUC) along with other key universities from across the Arab world have also partnered with the initiative in order to allow maximum reach to potential candidates.

Business Angels, also known as Angel Investors, are typically individuals who invest in businesses offering a higher return than they would usually see from more traditional or conventional investment. These networks serve as a vehicle to pool together investment efforts and fuel the growth of productive entrepreneurial initiatives.

Today, ABAN is uniquely positioned as the biggest organizations in the Arab world to provide entrepreneurs with access to a large pool of angel funding through its network of high net worth individuals (HNWIs).

'Financial capital that pools seed capital, or early stage funding through angel investors, are extremely limited in the region and in some parts non-existent. The founders of the ABAN believe that a venture such as this is an ideal platform to complement the economic development objectives of the Arab world and launch creative and exciting ventures,' added Al Ansari.

Habib Ghawi, YAL Executive Board Member said, 'Beyond the financial support, the Arab Business Plan Competition, through the different regional and international strategic partners, will provide expert counsel to the winning plan through the development process until it is actually realized.' He added, 'We believe this initiative will create a launch pad for many of the future's successful businesses. It very much reflects YAL's strategic projects that aim at boosting the economy in the Arab region through empowering its young.'