Abu Dhabi has introduced a series of interest-free, long-term loan programs for licensed Emirati startups in priority sectors, with loan amounts ranging from Dh150,000 to Dh3 million. The Khalifa Fund for Enterprise Development has designed these new funding initiatives to bolster the capabilities of startups, providing them with flexible repayment terms of up to 84 months, after an initial grace period of up to 24 months.
These funding programs are categorized into three distinct segments: The Start-up Funding Program includes the 'Microfinance Loan,' which supports micro startups with costs up to Dh1 million, covering up to 80% of the total business cost, with a cap at Dh500,000. Additionally, the 'Small Loan' finances up to 80% of the total cost for new SMEs across various sectors, with costs between Dh1 million and Dh5 million. Funding limits are set at Dh2 million for manufacturing sector businesses and Dh1 million for those in other priority sectors.
The Expansion Loan is tailored to support successful existing SMEs looking to grow, offering financing up to 80% of expansion costs, with a cap of Dh3 million for manufacturing sector businesses and Dh2 million for others in priority sectors. The Agri-tech Funding Program supports the adoption of modern agricultural technologies with loan amounts between Dh150,000 and Dh400,000, including the Pack House and Infrastructure Development Fund (PHIDF), which covers up to 90% of related costs.
Abu Dhabi has also launched the 'Net House Development Fund' (NHDF) to support modern farming methods by financing up to 90% of net house establishment or expansion costs. Another program, the Water Management System Enhancement Fund (WMSEF), covers up to 90% of advanced water management technology costs, aiming for efficient and sustainable water use.
These funds are designed to promote innovation and entrepreneurship among UAE Nationals, enhancing the growth of the SME ecosystem across sectors like healthcare, education, agriculture, tourism, ICT, manufacturing, and innovative projects. The funding programs align with Abu Dhabi's Economic Vision 2030 and adapt to market demands and consumer trends, providing entrepreneurs with the necessary financial resources to enhance their business potential in key sectors.
