Abu Dhabi, United Arab Emirates: Khalifa Fund for Enterprise Development has inked an agreement with Finance House; one of the UAE’s premier financial institutions specializing in investments and commercial financing solutions. The partnership will facilitate access to financing services for small and medium-sized enterprises (SMEs) owned by UAE nationals and encourage entrepreneurship in the UAE. The agreement will also position Khalifa Fund and Finance House as significant contributors to Abu Dhabi's SME Development Vision.  

HE Alia Al Mazrouei. CEO, Khalifa Fund for Enterprise Development stated: "We are committed to supporting entrepreneurs through a wide array of innovative solutions. Our collaboration with Finance House will facilitate SMEs’ access to financing options and will provide the UAE’s entrepreneurial ecosystem with a great resource in Finance House. This collaboration will play a pivotal role in promoting economic activity throughout the business ecosystem and encourage UAE nationals to develop and grow their businesses with greater ease and confidence.”

Mohammed Abdulla Alqubaisi, Founder of Finance House, commented on the signing ceremony and said: “We are pleased to partner with Khalifa Fund to provide National SME owners with the needed support to establish and grow their businesses. We are one of the first financial institutions to do so, and since its inception in 2004, Finance House has been aiding SMEs by financing them with more than AED 5 billion. By supporting them, we are also contributing to our community and to the overall growth of the economy. This cooperation falls underneath the Nation’s strategic vision to aid in SME development, and we are proud to be a key partner in doing so.”

As per the agreement, the Credit Guarantee Scheme (KF-CGS) developed by Khalifa Fund for Enterprise Development and in partnership with Finance House, will offer KFED members a wide range of financial incentives. These include a risk-sharing approach to lending which will encourage banks to lend directly to the SME sector, massively benefiting KFED members. The KF-CGS programme will allow the SME sector the chance to borrow directly from banks at more affordable rates and for a longer duration, compared to borrowing without a guarantee.

The programme will also enable Khalifa Fund members to benefit from the financial products of member banks which historically may not have had relationships with the SME sector. By expanding lending tools, the KF-CGS scheme will also effectively increase liquidity within marginalised sectors that are conventionally overlooked by larger financial institutions but are crucial to the UAE’s goal of economic growth through diversification. On the other hand, as a result of the agreement, partnering banks and financial institutions will benefit from an expanded target market and clientele, while enjoying the security of shared risk.

Finance House offers cutting-edge financing solutions to the SME sector, meeting their specific needs through a staff of qualified SME Relationship Managers. Some of the institution’s major offerings include collateral fee financing; a flexible payment period of up to 48 months; a loan facility of up to AED one million, a competitive interest rate, and much more.

-Ends- 

About Khalifa Fund for Enterprise Development

Khalifa Fund for Enterprise Development was established in 2007, by the virtue of the Law 14 of 2005 and its amendments, in the implementation of the vision of His Highness Sheikh Khalifa Bin Zayed Al Nahyan. The Khalifa Fund works as an independent, not-for-profit economic development agency of the Government of Abu Dhabi for the development and support of small-to-medium enterprises (SMEs).

The Fund helps to develop local enterprises in Abu Dhabi through instilling and enriching an investment culture amongst UAE nationals. The Fund also seeks to support and develop SMEs in the Emirate.

Khalifa Fund was founded in 2007 with a total capital of AED 300 million, which gradually increased in 2008 to AED 1 billion, in order to meet the growing demand for the Fund’s services. In 2011, the Fund’s total capital was increase to AED 2 billion, and the Fund covered all of the UAE through a network of branches.

About Finance House

Established in March 2004, Finance House is an Abu Dhabi headquartered finance company that commenced operations in July 2004.

The principal activities of the company are commercial and retail financing, financial services, and investments. The company is licensed and regulated by the Central Bank of the UAE. The major shareholders of Finance House include a number of prominent UAE businesspeople, high net worth individuals, and dignitaries.

Finance House is rated BBB- long-term and A3 short-term, both with Stable Outlook by Capital Intelligence.

For media inquiries, please contact:
Cameron Hurrion
KBS Strategies
cameron@kbsstrategies.com