UAE Launches AED 1 Billion Emirates Growth Fund to Boost SMEs
The United Arab Emirates, through the Emirates Development Bank (EDB), has announced the launch of the "Emirates Growth Fund" (EGF), a significant AED 1 billion growth equity platform. This initiative is strategically designed to accelerate the scale, resilience, and global competitiveness of UAE-based small and medium-sized enterprises (SMEs).
Fund Overview and Objectives
The Emirates Growth Fund aims to provide crucial long-term financing solutions and strategic partnerships to high-growth potential companies. It will focus on SMEs in priority sectors vital to the UAE's economic future, including manufacturing, food security, healthcare, and advanced technology. A key objective is to address the "middle gap" in funding often faced by SMEs that are too advanced for venture capital but too entrepreneurial for traditional private equity financing. The EGF is also expected to play a pivotal role in driving the UAE's industrial transformation and advancing the goals of "Operation 300bn," the national strategy to significantly increase the industrial sector's contribution to the GDP.
Focus on High-Potential SMEs
The fund targets established UAE-based SMEs that demonstrate strong growth potential and typically have annual revenues of at least AED 10 million. Investment sizes will range from AED 10 million to AED 50 million per company, with the fund primarily taking minority stakes to ensure that operational control remains with the founders. Beyond capital, the EGF will provide strategic support to portfolio companies in areas such as governance, growth planning, operational efficiency, and institutional transformation, enabling them to expand sustainably. Signaling its immediate momentum, the fund announced its first investment in the healthcare sector with Tarmeem Healthcare Holding LTD.
About Emirates Development Bank (EDB)
Emirates Development Bank (EDB) is a key financial engine for the economic development and industrial advancement of the UAE. As a government-owned financial institution, EDB provides essential financial and non-financial support to businesses of all sizes, from startups and SMEs to large corporates. The bank is instrumental in driving economic competitiveness across strategic sectors, aligning with the UAE's long-term vision. The Emirates Growth Fund is chaired by H.E. Ahmad Belhoul Al Falasi, UAE Minister of Sports, with H.E. Najla Ahmed Al Midfa serving as Vice Chair and Managing Director.
Looking Ahead
The launch of the AED 1 billion Emirates Growth Fund marks a significant commitment to fostering a robust and dynamic SME sector in the UAE. By providing both patient capital and strategic expertise, the fund is poised to help promising UAE-based companies scale new heights, enhance their governance, and contribute substantially to the nation's industrial future and economic diversification. This initiative is expected to create quality job opportunities and strengthen local supply chains, further cementing the UAE's position as a leading global business hub.
Source: Jawlah