Today's Edition
MAYS IBRAHIM (ABU DHABI)
In a bid to foster entrepreneurship and promote sustainable economic growth in the UAE, the Khalifa Fund for Enterprise Development has unveiled its Scale-up Funding Programmes, tailored specifically for Emirati-owned businesses that have been operational for a minimum of two years.
These programmes are designed to provide medium-term, interest-free loans for these established businesses, aiming to fuel the growth of companies in priority sectors by providing the financial resources needed to scale operations, foster innovation, and contribute to the sustainability of Abu Dhabi’s entrepreneurial ecosystem.
The Scale-up Funding Programmes include seven distinct products that cater to various business needs.
These include the Financing Business Operating Capital, which provides up to Dh600,000 to help businesses manage daily operational expenses, such as salaries, inventory, and overhead costs, excluding rent-related payments.
With a repayment period of up to 12 months and a grace period of three months, this product addresses the short-term financial obligations of established businesses.
Another key product is the Financing Fixed Asset (Vehicles/Logistics) product, which includes options for acquiring new logistics assets, including vehicles and boats.
For businesses seeking to enhance their operational capabilities, these loans cover up to 80 percent of the asset value, with funding limits reaching Dh1 million.
The repayment terms extend up to 36 months, providing a manageable financial structure for businesses to improve their infrastructure.
The Financing Fixed Asset (Equipment & Machinery) product supports businesses in the purchase of new equipment or machinery.
Similar to other fixed asset products, the financed asset must be mortgaged to the Khalifa Fund, and refinancing is not allowed.
The maximum funding provided is 80 percent of the equipment/machinery value, up to Dh1 million, with a repayment period equal to no more than 36 months and a grace period up to three months.
In both the Financing Fixed Asset (Equipment & Machinery) product and the Financing Fixed Asset (Vehicles/Logistics) product, the entrepreneur’s contribution will be determined by taking the greater of two values: either 20 percent of the required amount or the remaining amount that exceeds the funding limit.
The Financing Invoice Financing (Receivables) product serves as a short-term working capital solution, allowing businesses to receive early payments on their trade receivables, thus alleviating cash flow pressures.
The maximum funding available is 80% of discounted bills, up to Dh1 million.
The minimum cash contribution from the entrepreneur will be the greater of either 20 percent of the required amount or the portion exceeding the funding limit.
Repayment consists of a one-time bullet payment tied to the contract, with a grace period of up to three months.
This product is complemented by the Financing Advance Payment Guarantee (APG), which secures businesses by ensuring fulfilment of contractual obligations through a performance guarantee bond, vital for those involved in project-based work.
The maximum funding available is 70% of the APG, also up to Dh1 million.
The repayment period can extend up to 36 months, with a grace period determined by the contract.
The entrepreneur’s contribution for this product will be the greater of either 30 percent of the required amount or the remaining amount exceeding the funding limit.
E-commerce businesses are not left out, with a dedicated Financing E-commerce Inventory product that supports companies in maintaining sufficient stock levels during peak seasons.
This product provides funding that covers 80 percent of discounted bills, up to Dh1 million, with a maximum repayment period of 36 months, and a grace period that doesn’t exceed three months.
The entrepreneur’s contribution will be determined by taking the greater of two values: either 20 percent of the required amount or the remaining amount that exceeds the funding limit.
The Financing Agri-Tech product provides competitive financing solutions tailored for the agricultural sector, encouraging the adoption of advanced technologies to enhance sustainability and innovation.
Funding amounts can reach up to Dh2 million, with a repayment period of 24 to 48 months and a grace period of 6 to 18 months.
The entrepreneur’s contribution will be the greater of either 10 percent of the required amount or the portion that exceeds the funding limit.
Eligibility and Application Process
These programmes target Emirati entrepreneurs aged between 21 and 60, whose businesses are located in Abu Dhabi and operate within specified priority sectors, including healthcare, education, agriculture, ICT, tourism, manufacturing, F&B, or personal services.
To be eligible, the business should have been operational for at least two years or three years if expanding into a new branch.
Entrepreneurs interested in applying can do so through the TAMM platform, where they will undergo a thorough verification and screening process before their applications are reviewed by the Management Credit Committee.
The entire process, from application to approval, is expected to take about 10 business days.
For further details, prospective applicants can visit the Khalifa Fund page on TAMM or contact their call center at +971 2 696 0000.
