Dubai: A newly created Dh500 million SME fund will be launched to provide equity funding for Emirati entrepreneurs and possibly third party investors in various sectors.
The Khalifa Fund for Enterprise Development (KFED) and the National Bank of Abu Dhabi (NBAD) plan to launch the Imtiyaz SME Development Fund, they announced on Sunday.
The fund will have an initial equity size of Dh80 million, with matching commitments from KFED and NBAD. The size of the Fund is expected to reach Dh500 million.
The private equity fund will provide equity financing to promising new small and medium sized enterprises (SMEs) or fast-growing existing SMEs to encourage Emirati entrepreneurs, they said in a joint statement.
"We will develop the Imtiyaz Fund by building and expanding our public and private partnerships and the priority will be given to businesses that contribute to technology and knowledge transfer to the local market," said Abdullah Al Darmaki, the Chief Executive Officer of KFED.
Michael Tomalin, the Group Chief Executive of NBAD said the initiative will further empower Emirati entrepreneurs and enable faster development of the SME sector in the UAE--a sector expected to become a key driver of innovation and economic growth.
