Khalifa Fund for Enterprise Development launches funding programmes to support start-ups in priority sectors
15-07-2024
Abu Dhabi, 15th July 2024: Khalifa Fund for Enterprise Development has launched a new suite of funding programmes targeting licensed Emirati start-ups in priority sectors. The interest-free, long-term loans range from AED150,000 to AED3 million, with flexible repayment periods of up to 84 months following a grace period of up to 24 months. The programmes are designed to enhance the capabilities of start-ups, ensuring their successful establishment across the priority sectors and in the competitive market.
The funds aim to foster a culture of innovation and entrepreneurship among UAE Nationals, further enhancing the growth and development of the SME ecosystem across various priority sectors, including healthcare, education, agriculture, tourism, information and communications technology, manufacturing, and innovative projects. The newly introduced funding suite encompasses six funding products, categorized under three funding programmes: Startup Funding, Expansion Funding, and Agri-tech Funding.
The Start-up Funding programme includes the Microfinance Loan, which supports micro start-ups with costs not exceeding AED1 million. This product covers up to 80 per cent of the total business cost, provided that the loan does not exceed AED500,000. The programme also includes the Small Loan, which finances up to 80 per cent of the total cost of new small and medium businesses across different sectors with costs between AED1 million and AED5 million. Funding caps are set at AED2 million for businesses in the manufacturing sector and AED1 million for businesses in the other specified priority sectors.
The Expansion Funding programme includes the Expansion Loan, which is designed to support existing successful SMEs whose owners wish to develop and expand. It offers financing of up to 80 per cent of total expansion costs, provided that the loan does not exceed AED3 million for businesses in the manufacturing sector and AED2 million for businesses in other specified priority sectors.
The Agri-Tech Funding programme is dedicated to enhancing the agricultural sector by supporting the adoption of modern agricultural technologies with a loan cost between AED150,00 to AED400,000. This includes the Pack House and Infrastructure Development Fund (PHIDF), which covers up to 90 per cent of the costs associated with building and improving pack houses and related facilities. These costs encompass pack houses and packing materials, storage and cooling facilities, refrigerated vehicles, sanitation and waste management. The fund aims to enhance the quality, safety, and efficiency of horticultural products and enables farmers to sell them directly. The second funding product is the Net House Development Fund (NHDF), which supports the adoption of modern farming methods by financing up to 90 per cent of the costs for establishing or expanding net houses. The third funding product, the Water Management System Enhancement Fund (WMSEF), covers up to 90 per cent of the cost of advanced water management technologies, such as reverse osmosis systems, irrigation upgrades, and water recycling systems, with the goal of using water more efficiently and sustainably.
Her Excellency Alia Abdullah Al Mazrouei, Minister of State for Entrepreneurship, and CEO of Khalifa Fund, said: “We are pleased to reintroduce our financing programmes 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. The funding programmes are set to provide innovative entrepreneurs with the financial resources required 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 innovation hub.”
“This initiative reaffirms our commitment to nurturing a culture of innovative entrepreneurship within the Emirati community. By providing financial and non-financial support, we cater to Emirati SMEs of all sizes and development stages. We are dedicated to empowering aspirations and ambitions of Emirati entrepreneurs with promising business ventures, contributing to advancing Abu Dhabi’s SME ecosystem—a key player of a diverse, innovative, and sustainable economy”.
