The UAE tourism sector is attracting rising levels of investment as entrepreneurs tap into strong government-backed funding, underpinned by tourism’s contribution to GDP, job creation and income diversification.
Sustained public investment in tourism and hospitality infrastructure has opened new avenues for long-term, sustainable economic growth.
The country has actively encouraged tourism investment by building a globally competitive investment environment and empowering start-ups through a wide network of national funding funds.
These initiatives provide tailored financing solutions, early-stage support and business continuity tools aimed at ensuring long-term success.
UAE tourism investment
Over the past decades, the UAE has launched dozens of national funds, accelerators and programmes focused on stimulating entrepreneurship, with tourism investment among the priority sectors.
Together, these initiatives provide advisory and financing services, capacity-building, incentives, access to government procurement opportunities and technical and training support.
They have also helped strengthen UAE tourism capabilities, attract Emirati talent into the sector, diversify specialised tourism products and promote innovation and digital transformation, creating a supportive ecosystem for SMEs and start-ups.
The World’s Coolest Winter campaign, launched this year under the theme Our Winter is Entrepreneurial, highlights the role of national funding funds in promoting tourism investment.
Tourism occupies a central position in the UAE’s economy, supported by strong global demand, particularly during the winter season.
Khalifa Fund impact
Established in Abu Dhabi in 2007, the Khalifa Fund for Enterprise Development has played a leading role in encouraging investment across multiple sectors, including tourism. The fund expanded nationwide in 2011, opening branches in Ajman, Ras Al Khaimah and Fujairah.
Since inception, the fund has created more than 15,000 jobs, supported over 5,000 members and provided more than AED1.4bn ($381m) in funding to over 1,200 companies.
Its programmes include start-up and expansion financing targeting healthcare, education, agri-tech, ICT, tourism, industry and innovative projects.
The start-up financing programme offers loans covering up to 80 per cent of project establishment costs, with repayment periods of up to 84 months and grace periods of up to 24 months.
In 2024, the fund delivered entrepreneurship training to 5,658 applicants and group advisory sessions to 613 participants.
Dubai SME targets
Since its establishment in 2002, the Mohammed bin Rashid Establishment for SME Development, part of Dubai’s Department of Economy and Tourism, has provided a comprehensive support platform for Emirati entrepreneurs.
The establishment aims to support the creation of around 8,000 companies over the next eight years, raising the total number of supported Emirati businesses to 27,000 by 2033, compared with 19,000 by the end of 2024.
Total incentives provided since inception have exceeded AED800m ($218m).
Its financing arm funded 44 projects in 2024 with a total value of AED35.17m ($9.58m), bringing cumulative financing since 2015 to AED137m ($37.3m) across 168 projects.
Meanwhile, the Hamdan Innovation Incubator supported 66 entrepreneurs in 2024, up from 29 in 2023, raising the total number of supported start-ups to 826.
Sharjah federal support
Established in 2005 under the Sharjah Economic Development Department, RUWAD focuses on developing Emirati entrepreneurial capabilities and promoting a culture of entrepreneurship.
The programme currently has 1,909 members, has trained 9,724 participants and has financed 106 projects. RUWAD has also launched a smart application allowing members to access financing, training programmes and events.
At the federal level, Emirates Development Bank has provided financing worth AED30bn ($8.17bn) since launching operations in 2015. The bank has supported more than 13,500 companies and contributed AED10bn ($2.72bn) to GDP.
In October this year, EDB launched new financing packages to accelerate entrepreneurship growth by improving access to finance, expanding digital tools, offering mentoring programmes and enabling participation in specialised incubators and accelerators.
Through its EDB360 digital platform, entrepreneurs can open business accounts within minutes, apply for financing without traditional collateral requirements and connect directly with ecosystem partners.
