Abu Dhabi launched an interest-free, long-term loan scheme ranging from Dh150,000 to Dh3 million for licensed Emirati start-ups in priority sectors

An interest-free long-term credit program of Dh150,000 to Dh3 million has been introduced by Abu Dhabi for licensed Emirati start-ups operating in key industries. With a grace period of up to 24 months, the start-up enterprises can choose a flexible payment schedule of up to 84 months from the new funding programs offered by Khalifa Fund for Enterprise Development.

The three categories that comprise the new funding programs are as follows:

Start-up funding programme

The "Microfinance Loan," which is part of this program, helps microstart-ups with expenses under Dh1 million. Additionally, as long as the loan amount does not above Dh500,000, this covers up to 80% of the overall business expenses. 

A further feature of the program is the "Small Loan," which provides funding for new small and medium-sized enterprises (SMEs) in various industries at up to 80% of their entire expenses, ranging from Dh1 million to Dh5 million. Funding caps of Dh2 million are applicable to companies operating in the manufacturing sector and Dh1 million to companies operating in the other designated priority sectors.

Expansion loan

The purpose of the expansion loan is to assist current, profitable SMEs whose owners want to grow and broaden their company. As long as the loan does not exceed Dh3 million for enterprises in the manufacturing sector and Dh2 million for businesses in other designated priority sectors, it provides financing of up to 80% of the total growth expenditures.

Agri-tech funding programme

This initiative provides loans ranging from Dh150,000 to Dh400,000 to encourage the adoption of contemporary agricultural technologies. Included in this is the Pack House and Infrastructure Development Fund (PHIDF), which provides up to 90% of the funding needed to construct and upgrade pack houses and related infrastructure. In addition, pack houses, packing supplies, refrigerated trucks, storage and cooling facilities, waste management, and sanitation are included in these expenses. The fund helps farmers to sell their products directly to consumers while also working to improve the horticultural industry's efficiency, safety, and quality. 

Additionally, Abu Dhabi has started supporting an initiative that promotes contemporary farming practices. Named the 'Net House Development Fund' (NHDF), this initiative will provide funding for up to ninety percent of the expenditures associated with starting or growing net houses.

The Water Management System Enhancement Fund (WMSEF) is a different funding program that aims to use water more sustainably and efficiently by paying up to 90% of the cost of advanced water management technologies like irrigation upgrades, water recycling systems, and reverse osmosis systems.