Abu Dhabi has recently unveiled a groundbreaking interest-free, long-term loan initiative ranging from Dh150,000 to Dh3 million, specifically aimed at licensed Emirati start-ups in priority sectors. This new suite of funding programs, introduced by the Khalifa Fund for Enterprise Development, offers flexible payment periods of up to 84 months, with an initial grace period of up to 24 months. The funding programs are segmented into three distinct categories:
Start-Up Funding Program
Microfinance Loan:
This segment supports micro start-ups, covering costs not exceeding Dh1 million. The loan can fund up to 80% of the total business cost, with a maximum loan amount of Dh500,000.
Small Loan:
Aimed at small and medium businesses (SMEs) across various sectors, this loan covers 80% of the total cost for new businesses with expenses ranging between Dh1 million and Dh5 million. Funding caps are set at Dh2 million for manufacturing sector businesses and Dh1 million for other priority sectors.
Expansion Loan
This loan is designed to assist existing, successful SMEs looking to expand. It covers up to 80% of the total expansion costs, with a maximum loan amount of Dh3 million for manufacturing sector businesses and Dh2 million for businesses in other specified priority sectors.
Agri-Tech Funding Program
Pack House and Infrastructure Development Fund (PHIDF):
Supporting modern agricultural technologies, this fund covers up to 90% of costs associated with building and improving pack houses and related facilities. This includes expenses for pack houses, packing materials, storage and cooling facilities, refrigerated vehicles, and sanitation and waste management. The aim is to enhance the quality, safety, and efficiency of horticultural products, enabling farmers to sell directly.
Net House Development Fund (NHDF):
This project finances up to 90% of costs for establishing or expanding net houses, supporting modern farming methods.
Water Management System Enhancement Fund (WMSEF):
Covering up to 90% of the cost of advanced water management technologies, this fund includes reverse osmosis systems, irrigation upgrades, and water recycling systems, promoting efficient and sustainable water use.
Strategic Vision and Impact
Alia Abdullah Al Mazrouei, Minister of State for Entrepreneurship and CEO of the Khalifa Fund, expressed enthusiasm for the reintroduced financing programs. “We are pleased to reintroduce our financing programs for licensed start-ups, now re-envisioned as bespoke funding products. These have been meticulously designed after extensive analysis to align with Abu Dhabi’s Economic Vision 2030 and to adapt to the ever-evolving market demands and consumer trends.”
These funding programs are set to provide innovative entrepreneurs with the necessary financial resources to boost their business potential within key sectors. Given the instrumental role these sectors play in bolstering the GDP, they reinforce Abu Dhabi’s global stature as a nurturing incubator for SMEs and an innovation hub.
This strategic initiative not only aims to foster the growth of start-ups and SMEs but also aligns with Abu Dhabi’s broader economic goals, positioning the emirate as a leader in entrepreneurial support and innovation.
