Abu Dhabi Offers Emiratis 80% Startup Funding

Abu Dhabi’s Khalifa Fund Unveils New Financing Initiatives to Empower Emirati Entrepreneurs

New financing initiatives have been launched by the Khalifa Fund for Enterprise Development (KFED) to assist Emirati business owners in established and start-up industries. By providing critical cash to start-ups and established businesses, these schemes seek to support Abu Dhabi’s key industries.

Increasing support for business development
Building on its existing financing initiatives, KFED continues to provide medium- and long-term loans to support the expansion of innovative companies. According to a recent WAM study, the organization is dedicated to encouraging entrepreneurs by providing readily available financial assistance that meets the needs of start-ups and growing companies.

KFED operates two major financial programs, the Startup Finance Program and the Scale Finance Program. These programs aim to foster creative thinking, enhance corporate competitiveness, and ensure the long-term viability of projects. Transparency in the distribution of financial assistance ensures that both new and established businesses can access the resources they need to grow successfully.

Small and medium-sized enterprises (SMEs) operating in critical sectors, including healthcare, education, agri-tech, information technology, communications, tourism, industry, and other cutting-edge sectors, are particularly benefiting from these financial initiatives.

Commitment to Entrepreneurship and Economic Diversification
Mouza Obaid Al Nasri, Acting CEO of KFED, emphasized the importance of supporting entrepreneurship as a fundamental pillar of economic growth. She noted that the recently unveiled financial solutions are intended to support SMEs, which are essential for economic diversification, investor attraction, and raising national competitiveness.

Key Features of the Financial Initiatives
Start-up Funding Scheme
This initiative can cover up to 80% of project establishment costs, providing financial support to Emirati business owners to start their enterprises. It offers:

Maximum repayment period of 84 months
24 months to reduce the financial burden of new business owners
A scheme to increase financial support
Designed for existing businesses, this initiative supports successful and stable SMEs looking to expand. It ensures that businesses with proven promise can scale their operations without any hassle by providing up to 80% of the total expansion costs.

How the economy is strengthened by these initiatives

In addition to providing financial assistance, both financing schemes support job creation, revenue diversification and the sustainability of the national economy. By providing long-term, easily manageable loans, KFED ensures that companies can successfully handle their financial obligations while focusing on expansion.

Implications and Opportunities for the Future
With the aim of providing entrepreneurs with the skills and information they need to turn creative ideas into profitable ventures, KFED is running comprehensive entrepreneurship training programs throughout 2024. In addition to financial support, these training courses provide entrepreneurs with the tools and knowledge they need to succeed in Abu Dhabi’s changing economic environment.

Through these robust initiatives, KFED continues to play a key role in nurturing entrepreneurs, reinforcing Abu Dhabi’s position as a thriving hub for SMEs and innovation-driven businesses.