The UAE is strategically bolstering its entrepreneurial ecosystem, with a particular focus on the tourism sector, as a cornerstone of its economic diversification strategy. Through a robust network of national funds, accelerators, and government-backed programs, the nation is creating a fertile ground for startups and SMEs to thrive, contributing significantly to the GDP, job creation, and the country’s global competitiveness.
These initiatives provide entrepreneurs with a comprehensive suite of services, including funding, mentorship, technical support, and access to government contracts, fostering innovation and digital transformation across key industries.
Abu Dhabi’s Khalifa Fund Champions Innovation
The Khalifa Fund for Enterprise Development, established in Abu Dhabi in 2007, stands out as a pivotal force in the nation’s investment landscape. Since its inception, the fund has provided over AED 1.4 billion in support to more than 1,200 companies, helping to create over 15,000 jobs.
Its financing programs are designed to give startups a strong launchpad, offering loans that cover up to 80% of establishment costs with generous repayment terms, including an 84-month payment period and a 24-month grace period. In 2024 alone, the fund delivered entrepreneurship training to 5,658 applicants, reinforcing its commitment to building capabilities alongside providing capital.
Dubai SME’s Comprehensive Entrepreneurial Platform
Since 2002, the Mohammed bin Rashid Establishment for SME Development (Dubai SME), an agency of Dubai’s Department of Economy and Tourism, has served as an integrated platform for Emirati entrepreneurs. It provides end-to-end support, from business planning and incubation to licensing, marketing, and financing.
Dubai SME has an ambitious strategic goal to support the establishment of 8,000 new companies over the next eight years, aiming to bring the total number of assisted companies to 27,000 by 2033. To date, it has provided over AED 800 million in incentives. Its financing arm, the Mohammed bin Rashid Fund for SME, has deployed AED 137 million across 168 projects since 2015.
Sharjah’s Ruwad Fosters Local Enterprise
In Sharjah, the Sharjah Entrepreneurship Foundation (Ruwad) was founded in 2005 to cultivate a supportive environment for SMEs. The foundation focuses on developing the capabilities of Emirati entrepreneurs through training, funding, and preferential benefits.
Ruwad has grown its membership to 1,909 entrepreneurs and has provided training to nearly 9,724 individuals. The foundation has directly financed 106 projects, playing a crucial role in strengthening Sharjah’s SME sector and promoting a culture of innovation.
Emirates Development Bank Accelerates SME Financing
The government-owned Emirates Development Bank (EDB), which began operations in 2015, is a key financial enabler for the UAE’s economic agenda. EDB focuses on providing accessible financing solutions to SMEs in priority sectors to drive economic diversification.
The bank has approved AED 30 billion in financing, supporting over 13,500 companies and contributing AED 10 billion to the nation’s GDP. With the launch of its “EDB 360” digital platform, EDB has streamlined access to capital, allowing entrepreneurs to open business accounts in minutes and apply for financing without traditional collateral requirements.
About Khalifa Fund for Enterprise Development
The Khalifa Fund for Enterprise Development was established in 2007 in Abu Dhabi to help develop local enterprises and instill a culture of entrepreneurship. The fund provides comprehensive support to SMEs, including accessible financing, mentorship, training, and government contract facilitation. It targets key sectors such as healthcare, education, agritech, ICT, tourism, and industry to enhance innovation and contribute to the sustainable growth of the UAE’s economy.
Source: Al Ain News
