(MENAFN- Khaleej Times)
Published: Tue 16 Jul 2024, 4:50 PM
Last updated: Tue 16 Jul 2024, 10:10 PM
Abu Dhabi has launched an interest-free, long-term loan scheme ranging from Dh150,000 to Dh3 million for licensed Emirati start-ups in priority sectors.
The new suite of funding programmes by Khalifa Fund for Enterprise Development offers the start-up companies a flexible payment period of up to 84 months following a grace period of up to 24 months.
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The new funding programmes are divided into three categories, and are as follow:
Start-up funding programme
This programme includes the 'Microfinance Loan', which supports micro start-ups with costs not exceeding Dh1 million. This also covers up to 80 per cent of the total business cost, as long as the loan does not exceed Dh500,000.
The programme also includes the 'Small Loan', which finances up to 80 per cent of the total cost of new small and medium businesses (SMEs) across different sectors with costs between Dh1 million and Dh5 million. Funding caps are set at Dh2 million for businesses in the manufacturingsector and Dh1million for businesses in the other specified priority sectors.
Expansion loan
The expansion loan is designed to support existing successful SMEs whose owners wish to develop and expand their business . It offers financing of up to 80 per cent of total expansion costs, as long as the loan does not exceed Dh3 million for businesses in the manufacturing sector and Dh2 million for businesses in other specified priority sectors.
Agri-tech funding programme
This programme supports the adoption of modern agricultural technologies with a loan cost between Dh150,000 and Dh400,000. 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 also include 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.
Abu Dhabi has also launched a funding project which upports the modern farming methods. Dubbed the 'Net House Development Fund' (NHDF), this project will finance up to 90 per cent of the costs for establishing or expanding net houses.
Another funding programme, 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.
“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," said Alia Abdullah Al Mazrouei, Minister of State for Entrepreneurship, and CEO of Khalifa Fund.
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