In the United Arab Emirates, tourism has emerged as one of the most attractive sectors for entrepreneurs, thanks to its crucial role in supporting the national economy, contributing significantly to GDP, and creating diverse employment opportunities. The country’s global competitiveness in economic indicators and its ongoing efforts to diversify income sources have positioned tourism as a cornerstone of sustainable development.

Recognizing this, the UAE government has actively cultivated a world-class investment environment, offering a wide range of support mechanisms to entrepreneurs. This includes the establishment of national funding entities that provide essential financial support for startups and small businesses in the tourism sector, helping to ensure their continuity and long-term success.

A Legacy of Support and Empowerment

Over the past few decades, the UAE has launched dozens of national funds, accelerators, and development programs aimed at stimulating entrepreneurship across key sectors, including tourism. These initiatives offer comprehensive services—from advisory and financing solutions to skill development, awareness campaigns, and incentives like access to government contracts.

By providing financial programs, technical training, and operational support, these funds empower local entrepreneurs to grow their ventures and build national tourism capacities. They also foster private sector collaboration and promote innovative tourism products, helping to digitize services and modernize the industry. The result is a fertile ecosystem that nurtures small and medium-sized enterprises (SMEs) and supports the launch of groundbreaking startup ideas.

One example is the annual “World’s Coolest Winter” campaign, which this year runs under the theme “Our Winter is Entrepreneurship.” The campaign highlights the vital role of national funds in promoting tourism investment, especially during the winter season—a peak time when tourists from around the world flock to the UAE to enjoy its diverse offerings.

Khalifa Fund for Enterprise Development: A National Pioneer

Established in Abu Dhabi in 2007, the Khalifa Fund for Enterprise Development has played a transformative role in advancing investment across various sectors. With its expansion to Ajman, Ras Al Khaimah, and Fujairah in 2011, the fund became a trusted resource for Emirati entrepreneurs, offering financing options, practical business advice, and educational resources.

To date, the Khalifa Fund has:

• Created over 15,000 new jobs

• Enrolled 5,000+ members

• Provided funding exceeding AED 1.4 billion to more than 1,200 companies

Its programs include financing for both new and expanding businesses, with a focus on sectors such as tourism, healthcare, education, ICT, agritech, and innovative industries. The startup financing program, for example, covers up to 80% of total project costs, with easy repayment terms of up to 84 months and a 24-month grace period.

In 2024 alone, the fund conducted:

• 5,658 entrepreneurship training sessions

• 613 group consulting sessions

These efforts are aimed at equipping entrepreneurs with the knowledge and skills to turn bold ideas into successful ventures.

Dubai’s Model: Mohammed Bin Rashid SME Foundation

Established in 2002, the Mohammed Bin Rashid Establishment for SME Development—part of Dubai’s Department of Economy and Tourism—serves as a one-stop platform for Emirati entrepreneurs. The foundation supports business planning, incubation, acceleration, licensing, marketing, classification, and financing. It also facilitates participation in exhibitions and offers access to government procurement opportunities.

The foundation has set a strategic goal to help establish 8,000 new companies by 2033, increasing the total to 27,000 Emirati-owned businesses, up from 19,000 in 2024. So far, it has offered more than AED 800 million in incentives since its inception.

Financial Arm: Mohammed Bin Rashid Fund for SME Support

Launched in 2015, the Mohammed Bin Rashid Fund for SME Support serves as the financial engine of the foundation. In 2024, the fund financed 44 projects worth AED 35.17 million, bringing the total to 168 funded projects at a value of AED 137 million. The fund also provides mentorship and advisory services to ensure entrepreneurs are well-guided on their journeys.

Additionally, the Hamdan Innovation Incubator, one of the foundation’s initiatives, supported 66 entrepreneurs in 2024, compared to 29 the previous year, bringing the total to 826 startups. The incubator focuses on increasing market access and business scalability.

Sharjah’s “Ruwad” Initiative

Founded in 2005 under the Sharjah Economic Development Department, the Sharjah Foundation to Support Pioneering Entrepreneurs (Ruwad) offers a nurturing environment for SMEs. Ruwad promotes entrepreneurship through training, financing, incentives, and an expanding set of digital tools.

Notably:

• The foundation has 1,909 members

• Trained over 9,724 entrepreneurs

• Financed 106 projects

• Launched a smart app giving entrepreneurs easy access to funding services, event info, and training opportunities

Ruwad is committed to elevating Sharjah’s entrepreneurial ecosystem, helping local businesses grow and thrive.

Emirates Development Bank: Driving Strategic Impact

Since its launch in 2015, the Emirates Development Bank (EDB)—a government-owned entity—has been a crucial enabler of national economic goals. The bank provides tailored financing solutions for SMEs, supporting entrepreneurship as a key component of economic diversification.

EDB’s milestones include:

• AED 30 billion in financing since inception

• Support for 13,500+ companies

• A contribution of AED 10 billion to national GDP

In October 2024, the bank launched new financing packages and digital initiatives, aiming to accelerate entrepreneurship across the UAE. Through its EDB 360 digital platform, entrepreneurs can now open business accounts in minutes, apply for funding without traditional collateral, and connect directly with ecosystem partners.