Any business idea anywhere in the world requires capital initially to become a reality. Therefore, establishing a company and business setup in Dubai or anywhere else in the world can be difficult if you don’t have sufficient funds. In the United Arab Emirates, you will find an investor-friendly environment for the global business community. UAE offers financial support to aspiring entrepreneurs, startups and SMEs.

The five ways your business funding can be secured in the UAE are – local funding outreach programmes, institutional investors; venture capitalists; angel investors; and business incubators. Let us try to understand each of these financing possibilities.

  1. Local funding and Outreach Programmes

Local funding and outreach programmes are among the best financing options to raise capital for your business.

The Khalifa Fund for Enterprise Development

In 2007, the announcement of establishing the Khalifa Fund for Enterprise Development (KFED) was made by the President of the UAE and Ruler of Abu Dhabi H. H. Sheikh Khalifa bin Zayed Al Nahyan. It offers easy financing solutions to entrepreneurs, local investors, and small-medium enterprises in the country. The main objection of the fund was to promote entrepreneurship and investment in the United Arab Emirates. It was intended to encourage innovation and finance business ideas that are both achievable and inventive. It must also have some positive effect on the national economy in a variety of sectors. The KFED Programmes are of two types: Funding Programmes (including microfinance, Khutwa, Bedaya, Zeyada, Tasnea, Zaarie and Al Hasela) and Outreach Programmes (such as Al Radda, Ishraq, Sougha and Amal) focusing on specific sectors.

Dubai SME

Dubai SME is a Department of Economic Development (DED) agency offering financing solutions, among other support services, to new business and established small and medium enterprises.

  1. Venture Capitalists

Venture capitalists (VC) are also a very potential funding alternative for your small and medium enterprise. VCs are private equity investors who typically invest large amounts of money even if there is a possibility of high risk. Their purpose of significant investment is to gain huge if the companies they provide support manage to launch their businesses and maintain their operations successfully.

Most businesses are keener on partnering with venture capitalists if they have agents, local partner, or business setup consultancy to represent them

  1. Institutional Investors

Another viable option to set up your business in Dubai or anywhere in UAE is loans from local institutional investors. Local institutional investors are companies with access to other people’s funds that they divert and invest in various projects.

Banks are the most well-known and recognised institutional investors. Organisations like insurance companies and mutual funds are also excellent option for business funding solutions. UAE has a wide range of local and international institutional investors that opens opportunities for startups and entrepreneurs to build a solid foundation in the market.

  1. Angel investors

According to Forbes Magazine, Angel investors “invest in early-stage or startup companies in exchange for an equity ownership interest.” They are high-net-worth individuals, entrepreneurs and families. Anel investment is one of the fastest ways to avail of fundings as this requires limited paperwork and a more effortless and simple funding process.

It is not easy to find the right angel investor as it will require thorough awareness about the reputed angel investors in the UAE. Even a local partner with sufficient resources can be of great help who liaise with such investors. You can also search online for angel investors in UAE to start the process.

  1. Business Incubators

Organisations like business incubators offer complete support to startups, starting from finding rit places in the market, launching to marketing and financing. UAE has many world-class business incubators to support startups in establishing their business ideas.