AED 1 Billion Fund to Supercharge UAE’s mSME Growth
Imagine you’re an entrepreneur in the UAE — maybe you’re building the next big innovation in green manufacturing or trying to scale your food-tech startup. One of the biggest challenges? Access to capital that fits your needs and vision.
That’s exactly the problem a new AED 1 billion partnership between Emirates Development Bank (EDB) and RAKBANK aims to solve. Announced at the high-profile Make it in the Emirates Forum in Abu Dhabi, this co-financing initiative is one of the largest of its kind in the region dedicated specifically to micro, small, and medium enterprises (mSMEs).
Here’s why this is a big deal.
A Game-Changer for National Priority Sectors
The UAE has made no secret of its ambitions: it wants to lead in sectors like advanced technology, manufacturing, food security, renewables, and healthcare. But for that to happen, mSMEs — the real engine of innovation — need better financial support.
This AED 1 billion fund, equally backed by EDB and RAKBANK (AED 500 million each), is being designed to do just that. The money will be channeled through RAKBANK, which will provide tailor-made financing solutions to help mSMEs grow, especially those in the Northern Emirates — Ras Al Khaimah, Umm Al Quwain, and Fujairah — as well as greenfield ventures that need early-stage backing.
“This Is Exactly What Make it in the Emirates Was Meant to Deliver”
That’s how H.E. Ahmed Mohamed Al Naqbi, CEO of Emirates Development Bank, described the partnership. Since 2021, EDB has already poured over AED 18.8 billion into transformative projects. But this new initiative is about scale and specificity.
It’s about putting capital directly in the hands of the people building the factories, labs, and platforms that will define the UAE’s future economy. As Al Naqbi put it, “Unlocking mSME growth is one of the most effective ways to strengthen our industrial base.”
RAKBANK Steps Up to Empower Entrepreneurs
For RAKBANK, this partnership builds on years of focus on supporting entrepreneurs. Raheel Ahmed, Group CEO of RAKBANK, was crystal clear: “mSMEs are the backbone of the UAE economy.”
This isn’t just about more funding — it’s about better funding. mSMEs will now have access to liquidity at competitive rates, along with a co-lending structure that includes clear benchmarks: a strong percentage of funds will go to businesses in underrepresented regions, and special emphasis will be placed on local ownership and manufacturing-first ventures.
What Happens Next?
The fund is set to be deployed within the next 12 months. RAKBANK will lead risk management and oversee the lending portfolio, while EDB will stay closely involved with performance tracking and strategic direction.
But beyond the numbers, this is a story about collaboration — public and private institutions coming together to build a more diverse, resilient, and innovation-driven economy. There’s also a strong focus on outreach and awareness, ensuring mSMEs know this opportunity exists and how to access it.
Why This Matters for You
If you're an entrepreneur, manufacturer, or founder in the UAE — especially in one of the national priority sectors — this fund could be a springboard for your next big leap.
It’s not just capital. It’s a signal.
A signal that institutions like EDB and RAKBANK are betting on your growth. That the UAE is serious about making its industrial vision a reality. And that, more than ever, this country is ready to back the small businesses driving big change.
