UAE Strengthens Support for Small Businesses

May 6, 2026

82 min

May 6, 2026 05:30

UAE government doubles down on its bet on small business

## Government Initiatives for SMEs

The UAE government is intensifying its support for small and medium enterprises (SMEs) through the Emirates Growth Fund. This initiative, led by Dr. Ahmad bin Abdullah Belhoul Al Falasi, aims to fill the financing gap for SMEs that have outgrown early-stage funding but require long-term investment to expand.

## Strategic Investments

The fund takes minority stakes in businesses, ranging from 20% to 49%, to provide governance and global expertise while allowing founders to maintain control. This approach is designed to help companies transition from founder-driven models to more institutional structures, enhancing their market access.

## Addressing Regional Uncertainty

Despite regional uncertainties, such as the Iran conflict, the UAE government sees these as opportunities rather than barriers. The Emirates Growth Fund leverages its understanding of local markets to offer more precise risk assessments and competitive capital deployment.

## Impact of Corporate Tax

The introduction of corporate tax has altered the business landscape for SMEs. While fee waivers remain a support mechanism, access to equity is increasingly important. The fund's growing demand indicates that equity investment is a viable strategy for SMEs to navigate these changes.

## Government as a Direct Buyer

Beyond investment, the UAE government is also becoming a significant purchaser of locally produced goods and services. Initiatives like ADNOC's Local+ aim to connect contractors with UAE manufacturers, supporting SME growth and localizing supply chains.

## A Diverse Investment Landscape

The UAE's investment ecosystem is characterized by a variety of funds, each with specific mandates. The Emirates Growth Fund focuses on sectors like manufacturing and technology, complementing other investment vehicles and contributing to a robust economic environment.

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