Abu Dhabi has introduced a new loan scheme offering interest-free, long-term loans ranging from Dh150,000 to Dh3 million for licensed Emirati start-ups in priority sectors. This initiative, launched by the Khalifa Fund for Enterprise Development, provides start-ups with flexible repayment options of up to 84 months, following a grace period of up to 24 months.
According to a Khaleej Times report, the funding programmes are divided into three categories:
Start-up Funding Programme: This includes the ‘Microfinance Loan’ for micro start-ups with costs up to Dh1 million, covering up to 80% of the total business cost, capped at Dh500,000. It also features the ‘Small Loan’ for small and medium businesses (SMEs) with costs between Dh1 million and Dh5 million, financing up to 80% of the total cost. The funding is capped at Dh2 million for manufacturing businesses and Dh1 million for other sectors.
Expansion Loan: This loan supports existing SMEs aiming to expand, offering financing of up to 80% of total expansion costs. The loan is capped at Dh3 million for manufacturing businesses and Dh2 million for other sectors.
Agri-tech Funding Programme: This programme supports modern agricultural technologies with loans between Dh150,000 and Dh400,000. It includes the Pack House and Infrastructure Development Fund (PHIDF), covering up to 90% of costs related to pack houses and associated facilities, and the Net House Development Fund (NHDF), financing up to 90% of the costs for net houses. Additionally, the Water Management System Enhancement Fund (WMSEF) covers up to 90% of the cost of advanced water management technologies.
“We are pleased to reintroduce our financing programmes for licensed start-ups, now re-envisioned as bespoke funding products,” said Alia Abdullah Al Mazrouei, Minister of State for Entrepreneurship and CEO of Khalifa Fund. “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.”