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Khalifa Fund for Enterprise Development and Finance House in Abu Dhabi sign an agreement to increase funding opportunities SMEs Owned by Emirates.
The scheme, called the Credit Guarantee Scheme, will provide members of the fund with financial incentives, including the opportunity for SMEs to borrow directly from banks at higher prices. affordable price It will last longer, the Khalifa Fund said on Wednesday.
It also aims to forge new relationships between certain SMEs and banks that have no previous business links, increase liquidity in marginalized industries overlooked by financial institutions, and achieve economic growth through diversification.
“We are committed to supporting entrepreneurs through a wide range of innovative solutions. Our collaboration will facilitate access to financing options for SMEs and will provide substantial resources to the UAE’s entrepreneurial ecosystem,” said Alia Al Mazrouei, CEO of Khalifa Fund.
“This collaboration will play a key role in boosting economic activity across the business ecosystem and encourage UAE nationals to develop and grow their businesses with greater ease and confidence.”
SMEs are considered the backbone of the economy and play a key role in the UAE’s private sector, making up a large portion of businesses.
The latest government figures show that SMEs account for more than 94% of all businesses in the country, with wholesale and retail sectors accounting for 73%.
Revenue growth among UAE SMEs is almost on par with the global average of 46%, up from 39% last year, with two-thirds of them saying they have returned to pre-pandemic levels, according to a Euromonitor study.
Globally, the market is expected to grow at a compound annual growth rate of 27.4 percent to reach $55.6 trillion by 2027, compared with an estimated $13 trillion in 2021, according to U.S. research firm Imarc Group.
Khalifa Fund’s deal with Finance House is its follow-up The first e-commerce acceleration programlaunched in September to enable SMEs to take advantage of e-commerce technology Help them grow their business.
This collaboration will play a key role in boosting economic activity across the business ecosystem and encourage UAE nationals to develop and grow their businesses with greater ease and confidence
Alia Al Mazrouei, CEO of Khalifa Enterprise Development Fund
The Abu Dhabi agency’s SME support programme also extends beyond the borders of the UAE. In August, it announced that it would provide $30 million in financing to Kenyan SMEs to support the capital Nairobi to boost economic and Create job opportunies.
The fund has recently Strengthen its membership program Promotes entrepreneurship in the UAE and hosts an annual Spring Camp for Entrepreneurs young entrepreneur.
Finance House specializes in providing solutions for SMEs and has been actively assisting these companies. Its founder, Mohammed Alqubaisi, said it has funded the industry with more than 5 billion dirhams ($1.36 billion).
“By supporting them, we are also contributing to the overall growth of our community and economy,” he said.
Updated: November 9, 2022, 9:25 am
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