A Guide To Loans And Financial Options In The UAE

March 15, 2021by admin0

Materializing your million-dollar business idea starts with sufficient capital. In the UAE, banks, as well as outreach programs, investors, venture capitalists, and business incubators offer amazing fund options to jumpstart your business and eventually build an empire in the UAE.

The key to a good funding option for your business is continuous research and awareness on important factors such as interests, rebates, payment schemes, and how much these loaned funds will benefit your business.

To know more about the available funding options in the UAE, we have compiled a list for you:

1. Bank loans

Though it is a well-known fact for all that business loans for startups are a tedious process, it is a good option for investors as some offer flexible options to meet certain factors such as interest rates, collaterals, and repayment periods. All business banks are different – it is important for you to get to know your options and be ready with a creative business idea during a loan application. Emirates NBD, ADCB, and RAK Bank are some of the local banks that offer loans to startups and SMEs in the UAE.

2. Angel Investors and Venture Capitalists

Much like a local sponsor for a Mainland company, angel investors are individuals with exceptional financial standing looking into investing in startups who can prove their potential growth in the future. Often these are retired executives or families willing to invest in exchange for an equity ownership interest. In the UAE, Dubai Angel Investors (DAI | Dubai | Dubai Angel Investors) provide basic information and contacts for local AI’s.

3. Venture Capitalists

Venture Capitalists, on the other hand, are private equity investors who are willing to invest in small companies even if there are risks due to the large financial gain projected once the invested company soars.

4. Business Incubators

To get full assistance on funding, market placement, and launching, business incubators are the perfect choice for startups and SMEs. These organizations teach and finance promising businesses to help them survive the robust market both locally and internationally. Some of the biggest incubators in the UAE are Dubai Future Accelerator, Dubai Technology Entrepreneur Centre (DTEC), In5, Turn8, and Astrolabs.

5. Government Support

The local and national government of UAE values the contribution of homegrown businesses and foreign investments in the country. Because of this, to assist these organizations in maintaining the good economic standing of the nation, the government has come up with numerous interest-free and flexible financial solutions to assist investors. Some of these programs are designed to assist specific sectors to boost their development and protect their products and services. A good example is the Khalifa Fund for Enterprise Development.

Ready to start your business?

Applying for loans and financial support from institutions may sometimes be a scary step for budding investors. With this, IBG Consulting offers its services to you. As an expert in business and financial solutions in Dubai, we are ready to assist you in obtaining and maximizing your options in building a successful empire in the UAE.

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