Mohammed bin Rashid Fund for SMEs doubles seed capital loan

Mohammed bin Rashid Fund for SME Support, an affiliate of Mohammed bin Rashid Establishment for Small and Medium Enterprises, has increased the maximum limit of its seed capital loan from Dh500,000 to Dh1 million, and has kept the Dh5m maximum limit for the credit scheme loan that is offered by selected banks in the UAE and guaranteed by the fund for up to 80 per cent.

The Mohammed bin Rashid Fund for SME Support is a government initiative launched by Dubai SME on April 12, 2015 by a decree issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and Ruler of Dubai.

"This initiative is aimed at maximizing financial solutions available to emirati entrepreneurs," said Abdul Baset Al Janahi, CEO, Dubai SME and Managing Director of Mohammed bin Rashid Fund for SME Support.
"The financing limit was doubled due to the increasing demand on free-of-interest loans and scarcity of financing solutions that support entrepreneurs to incorporate innovation and technology into their businesses, in line with smart digital solutions, and 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 programs available at the KHDA-accredited Dubai Entrepreneurs Academy," added Al Marri. "Also available to them is the Government Procurement program which allows them to enter into contracts with local and federal government entities."

Backed by fund's assets which exceed Dh600 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 to innovative projects through Hamdan Innovation Incubator 'Hi2'.

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