Emirates Development Bank Launches AED 1 Billion Growth Fund To Support UAE-Based SMEs

Emirates Development Bank (EDB) has introduced the Emirates Growth Fund (EGF), a significant AED 1 billion initiative aimed at boosting UAE-based SMEs. This fund, revealed at the Make it in the Emirates Forum, focuses on sectors like Manufacturing, Food Security, Healthcare, and Advanced Technology. EGF aims to enhance these industries' global competitiveness and resilience.

The fund is crucial for the UAE's industrial transformation, supporting Operation 300bn's goal to increase the industrial sector's GDP contribution to AED 300 billion by 2031. EGF targets SMEs with annual revenues starting from AED 10 million, offering investments between AED 10 million and AED 50 million per company.

EGF redefines growth capital for UAE SMEs by providing flexible, long-term investment options. It supports companies that have surpassed early-stage funding but need further investment to reach their full potential. By taking minority equity stakes and actively creating value, EGF helps founders scale sustainably and strengthen governance.

The fund is chaired by Ahmad Belhoul Al Falasi, UAE Minister of Sports, with Najla Ahmed Al Midfa as Vice Chair and Managing Director. The board includes notable members like Ms. Mariam Saeed Ghobash and Mr. Mohammed Huraimel Al Shamsi.

Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology and Chairman of EDB, emphasized the fund's alignment with UAE leadership's vision to boost the national industrial sector's GDP contribution. He stated: "In line with the vision and directives of the UAE’s leadership to enable a transformative leap in our national industrial sector... Emirates Development Bank remains committed to advancing a future built on resilience and self-sufficiency."

He further added that EGF is a strategic step providing growth-stage companies with necessary capital and support to lead in the industrial sector. This initiative enhances competitiveness while reinforcing supply chain resilience.

Addressing SME Funding Gaps

Dr. Ahmad Belhoul Al Falasi highlighted EGF’s role in addressing funding gaps for SMEs that are too advanced for venture capital yet too entrepreneurial for traditional private equity. He noted: "EGF is designed to address the critical 'missing middle' in SME funding... Our goal is to partner with scalable businesses that drive industrial capacity..."

Najla Ahmed Al Midfa emphasized EGF’s commitment to founder-led growth: "At EGF, our capital is patient, but our ambitions are not... we are not just writing cheques; we are building in the next generation of UAE economic champions."

Initial Investments and Future Impact

EGF focuses on priority sectors aligned with UAE’s strategic goals, aiming to deepen the nation’s industrial base and stimulate job creation. Its first investment was made in partnership with Tarmeem Healthcare Holding LTD in the healthcare sector.

This initial investment marks the beginning of a portfolio intended to deliver measurable impact and national value. By enhancing local supply chains and creating high-skilled jobs, EGF strengthens economic resilience.

The Emirates Growth Fund represents a strategic investment in UAE’s long-term prosperity by empowering ambitious companies to become national champions in industrial innovation.

With inputs from WAM