The Khalifa Fund for Enterprise Development is an Abu Dhabi government initiative established in 2007 to develop and support small and medium enterprises (SMEs) owned by UAE nationals. The fund was launched with an initial capital allocation of AED 2 billion, reflecting Abu Dhabi’s strategic commitment to fostering an entrepreneurial culture and diversifying the economy beyond large state-owned enterprises.
Mandate
The Khalifa Fund provides a comprehensive suite of support services for Emirati entrepreneurs and small businesses. Its programmes span the full enterprise lifecycle: pre-launch training and business planning, startup financing, growth-stage capital, mentoring and advisory services, and incubation facilities. The fund targets UAE nationals seeking to establish or expand commercial enterprises across all sectors.
Programmes
The fund operates multiple financing windows calibrated to different stages of enterprise development. Micro-enterprise financing supports small ventures with modest capital requirements. SME financing provides larger facilities for established businesses seeking expansion capital. Khutwa and other specialised programmes target specific demographics including women entrepreneurs and young graduates. The fund also operates business incubators and accelerators that provide physical workspace, mentoring, and networking opportunities.
Financing terms are concessional, typically offering interest-free or low-interest loans with flexible repayment schedules. This reflects the fund’s developmental mandate rather than commercial lending objectives.
Impact
Since its establishment, the Khalifa Fund has supported thousands of Emirati-owned enterprises across sectors including retail, food services, technology, professional services, manufacturing, and agriculture. The fund reports regularly on the number of enterprises supported, jobs created, and survival rates of funded businesses.
Institutional Position
The Khalifa Fund operates as an independent entity reporting to the Abu Dhabi government. It coordinates with other enterprise support institutions including Hub71 (technology startups), ADGM (financial services startups), and federal-level SME programmes.
Role in Vision 2030
The Khalifa Fund directly supports the Abu Dhabi Economic Vision 2030’s first pillar: building a large, empowered private sector. The vision explicitly identifies SME development and entrepreneurship as essential to creating a diversified economy with broad-based private sector participation. The Khalifa Fund provides the financial infrastructure and support ecosystem that enables Emirati citizens to participate in the private sector as business owners rather than solely as employees.