Investment in the tourism sector has emerged as one of the most attractive fields for entrepreneurs in the UAE, primarily due to its significant contribution to the national economy and local GDP. This sector not only creates diverse job opportunities but also enhances the competitiveness of the country in global economic indices, diversifies income sources, and provides substantial support for the tourism and hospitality infrastructure, ultimately fostering sustainable economic growth.
The UAE has placed a strong emphasis on encouraging investments in tourism projects by creating an ideal investment environment with global competitive advantages. Additionally, the government has launched numerous national funds aimed at providing the necessary financing to startup businesses, ensuring their continuity and success.
Over the past decades, the UAE has introduced numerous national funds, accelerators, and programs specifically designed to stimulate entrepreneurship and support the business sector across various fields, particularly in tourism investment. These funds have achieved remarkable progress by offering a wide range of services, including consultancy and financial solutions, skill development, and fostering a culture of entrepreneurship, while also facilitating access to government contracts. They aim to provide funding programs and the technical, managerial, and training support necessary for entrepreneurs, empowering them to grow their businesses, build national tourism capabilities, and encourage Emirati talent to engage in the sector. Coordination between government entities and the private sector is also a priority to offer incentives and advantages for tourism projects, promote specialized tourism products, and stimulate innovation in the tourism sector by backing innovative initiatives and supporting digital transformation.
The campaign titled “The Most Beautiful Winter in the World,” launching this year under the slogan “Our Winter is Leadership,” highlights the pivotal role of national funds in encouraging investment in the tourism sector. Given the substantial influx of tourists and visitors to the UAE to enjoy its winter climate, the sector holds an essential position in the national economy, providing a wide array of services from hospitality to entertainment for all segments of society.
Khalifa Fund for Enterprise Development
The Khalifa Fund for Enterprise Development stands out as one of the most prominent financial funds, achieving significant advancements in promoting investments across various sectors since its establishment in 2007 in Abu Dhabi. It has become a preferred destination for entrepreneurs looking to cultivate and grow their investment ideas according to global standards. In 2011, the fund expanded its reach by opening branches in Ajman, Ras Al Khaimah, and Fujairah to provide targeted financing options for small and medium enterprises. Additionally, it offers educational resources and practical advice concerning business projects and their financing mechanisms.
Since its inception, the fund has created over 15,000 new job opportunities and has more than 5,000 members. It has provided support exceeding 1.4 billion dirhams to over 1,200 companies.
The financing programs offered by Khalifa Fund include a startup financing program and an expansion financing program aimed at enhancing innovation culture and competitiveness to ensure sustainable success. The startup financing program provides loans covering up to 80% of total project costs, under flexible conditions with repayment periods up to 84 months and grace periods up to 24 months. In 2024, the fund conducted entrepreneurship training courses for 5,658 participants and group consultancy sessions for 613 individuals to provide comprehensive support and expertise to entrepreneurs, helping them transform their ambitious ideas into success stories.
Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development
Established in 2002, the Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development, part of Dubai’s Department of Economy and Tourism, serves as a comprehensive platform offering support services to Emirati entrepreneurs. Its focus includes planning, capacity building, and aiding entrepreneurs in realizing their full potential through accelerators, incubators, training programs, initiatives, exhibitions, licensing, marketing, classification solutions, financing, and opportunities through government procurement programs.
The establishment aims to support the creation of approximately 8,000 new companies over the next eight years, which would raise the total number of Emirati companies assisted by the establishment to 27,000 by 2033, up from about 19,000 by the end of 2024. To date, it has provided over 800 million dirhams in incentives.
The Mohammed Bin Rashid Fund for Small and Medium Enterprises, the financial arm of the establishment, plays a crucial role in empowering entrepreneurs by providing financial support and advisory services. In 2024, the fund financed 44 projects totaling 35.17 million dirhams, bringing the total number of benefiting projects to 168, with a cumulative value of 137 million dirhams since its establishment in 2015.
Additionally, the Hamdan Center for Innovation and Creativity, an initiative of the Mohammed Bin Rashid Establishment, supported 66 entrepreneurs in 2024, compared to 29 in 2023, resulting in a total of 826 startups benefitting from support through increased market access, business expansion, and financial guidance.
Sharjah Entrepreneurship Fund “Ro’ya”
The Sharjah Entrepreneurship Fund, established in 2005 under the Sharjah Economic Development Department, aims to create a supportive environment for small and medium enterprises, develop the skills of Emirati entrepreneurs, and promote an entrepreneurial culture. It offers a range of high-quality financial, consulting, and training services to support local entrepreneurs in developing and sustaining their businesses.
Ro’ya has launched a smart application that enables members to access funding services, information about events, training courses, and innovative initiatives, with a goal of enhancing the entrepreneurial ecosystem and fostering the growth of small and medium enterprises in Sharjah. Currently, Ro’ya has 1,909 members and has trained about 9,724 individuals, with 106 projects financed.
Emirates Development Bank
The Emirates Development Bank, owned by the UAE government, began operations in 2015 to fulfill national agenda goals by providing financing solutions for small and medium enterprises under favorable conditions. The bank plays a vital financial role in supporting the SME sector and achieving economic diversification, offering various solutions to empower emerging businesses to maximize their potential. Since its establishment, the bank has allocated 30 billion dirhams in funding, aiding over 13,500 companies and contributing 10 billion dirhams to the local economy.
In early October, the bank launched financing packages and initiatives to support startups and small enterprises, aimed at accelerating entrepreneurship growth across the UAE by facilitating access to funding, enhancing the adoption of digital tools, and providing mentorship programs. Furthermore, aspiring entrepreneurs can join specialized incubators and accelerators, and through the “EDB 360” digital platform, entrepreneurs can open business accounts in just a few minutes and apply for funding without traditional collateral requirements, connecting directly with supportive ecosystem partners for launch or expansion phases.