Khalifa Fund strikes SME-funding agreement with Finance House

By Arya M Nair, Intern Reporter
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Khalifa Fund_Finance House SME Funding Partnership
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Khalifa Fund for Enterprise Development (KFED) 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.

As per the agreement, the Credit Guarantee Scheme (KF-CGS) developed by Khalifa Fund 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 program 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.

Alia Al Mazrouei_Khalifa Fund_Finance House SME Deal
Alia Abdulla Al Mazrouei
CEO – Khalifa Fund

“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.”

Mr. Mohammed Abdulla Alqubaisi, Founder of Finance House, said that “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 $1.4 billion. By supporting them, we are also contributing to our community and 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.”

The program 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 marginalized sectors that are conventionally overlooked by larger financial institutions but are crucial to the UAE’s goal of economic growth through diversification.

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 $2,72,257, a competitive interest rate, and much more.

Related: Saudi Aramco, Odoo sign MoU to accelerate digital transformation of SMEs