Abu Dhabi has introduced an interest-free, long-term loan program for licensed Emirati startups in key sectors, offering loans ranging from Dh150,000 to Dh3 million. This initiative is part of a new funding suite from the Khalifa Fund for Enterprise Development, aimed at supporting the growth of local businesses.
Start-Up Funding Programs
The funding program includes several options tailored to different business needs:
- Microfinance Loan: Designed for micro startups with costs up to Dh1 million, this loan covers up to 80% of total business costs, with a maximum loan amount of Dh500,000.
- Small Loan: This option finances 80% of costs for small and medium enterprises (SMEs) with total costs between Dh1 million and Dh5 million. The funding cap is set at Dh2 million for manufacturing businesses and Dh1 million for other priority sectors.
Expansion Loans
The Expansion Loan is tailored for successful SMEs looking to grow their operations. This program offers financing up to 80% of total expansion costs, with limits of Dh3 million for manufacturing businesses and Dh2 million for other priority sectors.
Agri-Tech Funding Program
To promote modern agricultural practices, Abu Dhabi has introduced the Agri-Tech Funding Program, providing loans between Dh150,000 and Dh400,000. This includes the Pack House and Infrastructure Development Fund (PHIDF), which can cover up to 90% of costs for building and upgrading pack houses and related facilities, including packing materials and storage solutions. The goal is to enhance the quality and efficiency of horticultural products.
Innovative Farming Initiatives
Abu Dhabi is also supporting modern farming through the Net House Development Fund (NHDF), financing up to 90% of costs for establishing or expanding net houses. Additionally, the Water Management System Enhancement Fund (WMSEF) covers up to 90% of costs for advanced water management technologies, such as irrigation upgrades and water recycling systems, promoting sustainable water usage.
Supporting Entrepreneurs
Alia Abdullah Al Mazrouei, Minister of State for Entrepreneurship and CEO of Khalifa Fund, expressed satisfaction with the reintroduction of these financing programs, emphasising that they are designed to meet Abu Dhabi’s Economic Vision 2030 and adapt to evolving market demands. She stated that these initiatives are essential for empowering innovative entrepreneurs and enhancing the potential of key sectors, ultimately reinforcing Abu Dhabi’s position as a global hub for SMEs and innovation.
