Investment in the
UAE’s tourism sector is increasingly attracting entrepreneurs, underpinned by
its strong contribution to the national economy, significant share of GDP, job
creation potential and growing role in boosting the country’s global competitiveness
and income diversification.
Strong government
support for tourism and hospitality infrastructure has further opened avenues
for sustainable economic growth, reported WAM.
The UAE has actively
encouraged investment in tourism projects by creating an ideal, globally
competitive investment and empowering start-ups through numerous national
funding funds.
These funds provide
tailored financing solutions and early-stage support to ensure business
continuity and long-term success.
Over the past decades,
the UAE has launched dozens of national funds, accelerators and programmes
aimed at stimulating entrepreneurship and empowering the business sector, with
tourism investment among the key focus areas.
These initiatives have
delivered notable achievements by offering a wide range of services, including
advisory and financing solutions, capacity-building, entrepreneurship
awareness, incentives, and access to government procurement opportunities.
They also provide
technical, administrative and training support to help entrepreneurs grow their
businesses, build national tourism capabilities, encourage Emirati talent to
enter the sector, diversify specialised tourism products and foster innovation and
digital transformation.
Together, they have
created a nurturing ecosystem for small and medium-sized enterprises (SMEs) and
innovative start-ups.
The “World’s
Coolest Winter” campaign, launched this year under the theme “Our
Winter is Entrepreneurial”, highlights the pioneering role of national
funding funds in promoting tourism investment, a sector that occupies a central
position in the UAE’s economic landscape due to strong global tourist demand,
particularly during the winter season.
Established in Abu
Dhabi in 2007, the Khalifa Fund for Enterprise Development has played a leading
role in encouraging investment across multiple sectors.
It has provided
entrepreneurs with a platform to incubate and grow their ideas according to
international standards.
The fund expanded
nationwide in 2011 with branches in Ajman, Ras Al Khaimah and Fujairah,
offering targeted financing and support services for entrepreneurs and SMEs, as
well as access to educational resources and practical business advice.
Since its inception,
the fund has created more than 15,000 jobs, supported over 5,000 members and
provided more than AED1.4 billion in funding to over 1,200 companies.
Its financing
programmes include start-up funding and expansion financing, targeting priority
sectors such as healthcare, education, agri-tech, ICT, tourism, industry and
innovative projects.
The start-up financing
programme offers loans covering up to 80 percent of project establishment
costs, with flexible terms, 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.
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 platform to support Emirati entrepreneurs.
Its services span
planning, capacity-building, accelerators, incubators, training programmes,
licensing, marketing, financing, incentives and access to government
procurement.
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 AED800 million.
Its financing arm
funded 44 projects in 2024 with a total value of AED35.17 million, bringing the
cumulative number of funded projects since 2015 to 168, with total financing of
AED137 million.
Moreover, the Hamdan
Innovation Incubator supported 66 entrepreneurs in 2024, up from 29 in 2023,
raising the total number of supported start-ups to 826.
Established in 2005
under the Sharjah Economic Development Department, RUWAD aims to foster a
supportive environment for SMEs, develop Emirati entrepreneurial capabilities
and promote a culture of entrepreneurship.
It provides financing,
training, exemptions and preferential benefits, alongside advisory services
delivered to the highest standards.
RUWAD has launched a
smart application enabling members to access financing services, training
programmes, events and innovative initiatives.
The foundation
currently has 1,909 members, has trained 9,724 participants, and has financed
106 projects.
Emirates Development
Bank (EDB), owned by the UAE government, began operations in 2015 to support
national economic objectives by providing flexible financing solutions to SMEs.
Since its
establishment, the bank has extended financing worth AED30 billion ($381 million), supported
more than 13,500 companies, and contributed AED10 billion to GDP.
In October this year,
EDB launched new financing packages and initiatives to support start-ups and
SMEs, aimed at accelerating entrepreneurship growth across the UAE by improving
access to finance, expanding digital tools, offering mentoring programmes and
enabling entrepreneurs to join 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 supporting launch
and expansion stages.
