DUBAI, 5th October, 2015 (WAM) -- Mohammed bin Rashid Fund for SME Support, a government initiative launched by Dubai SME on 12th April 2015 under a decree issued by Vice President and Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, has increased the maximum limit of its Seed Capital Loan from AED500,000 to AED1 million, while maintaining the AED5 million maximum limit for the Credit Scheme Loan, which is offered by selected banks in the UAE and guaranteed by the fund for up to 80%.
"This initiative is aimed at maximising financial solutions available to Emirati entrepreneurs," said Abdul Baset Al Janahi, Chief Executive Officer of Dubai SME and Managing Director of the fund. "The financing limit was doubled due to the increasing demand on free of interest loans, and the scarcity of financing solutions that support entrepreneurs to incorporate innovation and technology into their businesses, in line with smart digital solutions, to provide stronger presence in the market and increase their competitiveness."Saeed Matar Al Marri, Deputy CEO of Dubai SME and Director of the fund, said, "The role of the fund is not limited to providing financial solutions. It also encourages entrepreneurs to benefit from the guidance provided by Dubai SME, whether at the initial stages of the project or throughout its operation. Entrepreneurs have the opportunity to benefit from training and development programmes available at the Knowledge and Human Development Authority, KHDA, accredited Dubai Entrepreneurs Academy," added Al Marri. "Also available to them is the Government Procurement programme, which allows them to enter into contracts with local and federal government entities."Backed by the fund?s assets, which exceed AED600 million, the seed loan is provided directly to entrepreneurs following the completion of the required procedures. Projects considered by the fund should be based in Dubai and fully owned by an Emirati. The fund will monitor the funded projects through reviewing its business reports and field visits and offering advice to entrepreneurs as and when needed. The fund?s operating model ensures its sustainability through re-investing the loan settlement to finance new projects. In addition to its financing role, the fund will act as an incubator for innovative projects through the Hamdan Innovation Incubator, Hi2.Copyright Emirates News Agency (WAM) 2015.
