Khalifa Fund explained: Funding, loans and support programmes for Emirati SMEs in Abu Dhabi

Dubai: Starting or growing a small-to-medium business enterprise (SME) can be an uphill task. But if you’re an Emirati looking for business support, seize the opportunity to become part of the Khalifa Fund ecosystem.What is the Khalifa Fund?The Khalifa Fund is a non-profit economic development fund of the government of Abu Dhabi and is dedicated to supporting SMEs. It provides Emirati entrepreneurs, business owners, and professionals with access to market, resources, mentorship, and enterprise funding.Eligibility criteriaThe business owner must be an Emirati entrepreneur, who is aged 21 and above, with the maximum age limit being 60.The business must be based in the emirate of Abu Dhabi.The business is in the growth stage (SME), or is an existing business looking to expand.The business has been operational for a minimum of two years, or three years if the funding is for a new branch.The business is under one of these sectors: Healthcare, education, agriculture, information and communication technology, tourism and manufacturing, and innovative projects.Key supportThe Khalifa Fund operates via three key support pillars:Funding: Eligible Emirati SMEs can take advantage of several funding schemes tailored to their size, and their business activities. Khalifa Fund offers medium-term, interest-free loans to Emirati entrepreneurs. Here are a few products available:Microfinance loan: For new entrepreneurs with project costs up to Dh1 million. They will receive funding up to Dh500,000.Small loan: For start-ups and growing micro/small enterprises, with project range of Dh1 million to Dh5 million. They will receive funding up to Dh2 million (for manufacturing sector), and Dh1 million (for other sectors).Expansion loan: For established SMEs ready to grow. They will receive funding up to Dh3 million (for manufacturing sector) and Dh2 million (for other sectors).Agri: Pack House and Infrastructure Development Fund (PHIDF): For post-harvest facilities like storage and sanitation, with funding of up to Dh250,000.Agri: Net House Development Fund (NHDF): For greenhouse modernisation and crop protection, with funding up to Dh400,000.Agri: Water Management System Enhancement Fund (WMSEF): For efficient irrigation and sustainable water technologies, with funding up to Dh150,000.Financing business – operating capital: Designed to support day-to-day operational expenses and immediate cash flow needs. Funding of up to Dh600,000 is available, with no minimum cash contribution.Financing fixed assets – vehicle and logistics: Enabling the purchase of vehicles essential for business operations and logistics including cars, trucks, boats, etc. Funding is available to cover up to 80% of the vehicle cost, up to a maximum of Dh1 million.Financing fixed assets – machinery and equipment: For the acquisition of essential business machinery and equipment, with funding of up to 80% of the equipment cost, up to a maximum of Dh1 million.Bill discounting: To unlock immediate liquidity by financing upcoming or future receivables, with funding of up to 80% of the discounted bills, up to a maximum of Dh1 million.Advance Payment Guarantee (APG): To support contract execution by providing advance payment security to customers, with funding of up to 70% of the APG, up to a maximum of Dh1 million.Finance e-commerce inventory: Enabling e-commerce SMEs to manage inventory cycles and optimise cash flow, with funding of up to 80% of the discounted bills, up to a maximum of Dh1 million.Agri tech financing: For agri-tech solutions driving productivity, resilience, and environmental impact, with funding of up to Dh2 million.Capability building: Entrepreneurs can develop the skills and knowledge needed to start, operate and grow their business. There are custom-built support systems to aid SMEs at every stage of their journey.Membership programme: By becoming members, SMEs receive support throughout their entire growth lifecycle, with immediate access to the market, regulatory support, business opportunities with stakeholders and potential clients.Programmes and initiativesApart from financing options, Khalifa Fund offers strategic programmes that support SMEs, no matter what they require, with each programme designed to meet market demands and industry needs.Abu Dhabi SME champions programme: This programme aims to empower SMEs through procurement contracts. Services include skill development and support facilities to enhance SMEs’ capabilities and competitiveness, like business consulting, training workshops, and networking opportunities with partners and potential clients. The programme is managed through a platform that matches eligible SMEs with key participating partners.SME export enablement programme: Equipping SMEs with the tools they need to enter international markets, this programme offers expert advisory services, capacity building and access to global trade platforms. The programme aims to enhance the global competitiveness of UAE-based businesses, by helping them identify and seize export opportunities.SME finance facilitator programme: Designed to bridge financing gaps, this initiative helps SMEs meet their working capital and long-term investment needs by simplifying the process of opening business bank accounts, and improving access to credit and funding solutions. The programme assists SMEs to build strong partnerships with financial institutions and secure the resources they need for growth and innovation.ICV readiness programme: The In-Country Value (ICV) certificate is a government-backed program that measures and certifies a company’s contribution to the local economy. This initiative prepares businesses to acquire certification by helping them meet the eligibility criteria for ICV. It also supports localising supply chains, and redirecting high public spending towards the national economy.Light manufacturing accelerator: This programme is designed to provide end-to-end support by connecting entrepreneurs and manufacturers with government bodies and industry partners. The connected, supportive system offers access to supply chain opportunities, helps businesses navigate regulations, and integrates them into sector-specific hubs so that SME manufacturers can innovate, scale and compete on a local and international level.Growth opportunities and franchise: The Khalifa Fund offers companies in the growth stage a way to scale efficiently, capitalise on local market dynamics, and do it in a cost-efficient way. Ideal for business owners who want to grow their own operations, or partner with an established business and start a new venture together, the initiative helps drive economic growth and entrepreneurship.Game incubator programme: This programme requires six months of commitment and involves empowering Emirati youth aged 18 to 25 to enter the gaming sector through a hands-on curriculum that combines technical development and entrepreneurship. The course includes training in game design and development, working in teams to create a fully functional game prototype, guidance and mentorship from industry experts and the use of the latest tools and technology.Future entrepreneur programme: For young entrepreneurs and innovators aged 4 to 18, this strategic programme helps develop participants’ practical and technological skills, within an interactive learning environment. There are two tracks to choose from:Young entrepreneurs programme: A practical track that introduces the fundamentals of entrepreneurship and financial literacy, with interactive workshops, and hands-on activities in product design, pricing and brand building. Participants can choose from two fields – trader or inventor – and participate in creative, innovative challenges and competitions. An official business licence is awarded to participants who successfully complete the programme.Game development programme: A specialised track catered to Emirati youth who are interested in technology and gaming. The programme offers intensive, hands-on training, expert mentorship, and access to the latest game development tools and technology. The programme aims to prepare youth to enter the gaming sector and the creative economy, fully equipped with confidence and the requisite skills.Required documentsBefore registering for funding or programmes, ensure you have the following documents ready for submission.Mandatory business documents:Filled in application (available on khalifafund.ae)Valid trade licenseSix months of bank statementsAudited financial statement (minimum one year)Corporate Al Etihad Credit Bureau (AECB) reportRental contractMandatory personal documents:Entrepreneur’s valid passport copyEntrepreneur’s valid Emirates IDEntrepreneur’s Family BookSecurity clearance formSalary certificate or proof of income (not older than three months)Personal bank account statements (last six months)Entrepreneur’s scored report from AECBHow to register for funding and programmesIf you would like to register for financing, follow the steps below. The application process takes up to two weeks, and there is no cost involved.Visit TAMM, Abu Dhabi government’s official portal: tamm.abudhabi/en/abu-dhabi-government-entities/khalifafundforenterprisedevelopment.Log in using your UAE PASS.Click on ‘Funding request’.Fill in the application form, with your personal details, and ensure you have the following documents ready for submission:Once you submit your application, wait until you receive approval from the Management Credit Committee.Once you have received the approval, you will be asked to sign the financing agreement, and complete the process.In order to register for individual programmes, follow these steps:Visit Khalifa Fund’s Programmes page: khalifafund.ae/program-initiatives.Select the programme you prefer, and scroll to the bottom. Each programme has its own application form, with specific requirements.Fill in the form, submit requisite documents, and wait for approval from Khalifa Fund.Once you receive the approval, you will receive more information on how to access the programme, starting dates, and all relevant details.