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7 Financing Options For Your Business in the UAE

5 September 2021

For aspiring entrepreneurs, those with viable business ideas, and those who seek to level up their small businesses, raising capital can sometimes be difficult and complicated. [..]

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7 Financing Options For Your Business in the UAE

5 September 2021

SFM reviews 7 Financing Options For Your Business in the UAE

For aspiring entrepreneurs, those with viable business ideas, and those who seek to level up their small businesses, raising capital can sometimes be difficult and complicated. However, within the UAE, a favourable environment exists wherein a multitude of financial options are available, and with this, the possibility of securing business funding.

Through heavily investing in entrepreneurs across the world and assisting many entrepreneurs to expand their existing businesses or to start new ventures, we at SFM know that viable business ideas require initial capital. Fortunately for those seeking sufficient funds, there are seven financing options available, including peer-to-peer lending, crowdfunding, venture capitalists, institutional investors, business incubators, local funding and outreach programs, and angel investors.

Within the UAE, a wide range of local and international institutional investors exist. From banks, mutual funds, and insurance companies, UAE institutional investors have access to other individual’s funds and invest these through loans to a variety of projects and business owners. Notably, within the UAE, institutional investors include Greenstone Equity Partners and Gulf Capital.

Venture Capitalists As A Potential Funding Source

A favourable option among entrepreneurs and small business owners, venture capitalists are private equity investors who invest high amounts of finance even if high risks are evident. Focused on high reward, venture capitalists invest based on the potential to gain large financial rewards should the business they invest in launch successfully and maintain high success rates. Within the UAE, venture capital investors include VentureSouq; Shorooq Partners, and BECO Capital.

Raise Capital Through Local Funding And Outreach Programs

An alternative financing option is local funding and outreach programs. The Khalifa Fund for Enterprise Development offers financing solutions to local investors, entrepreneurs, and SMEs within the UAE. More specifically, it offers funding programs (Khutwa, Bedaya, Zeyada, and Tasnea) and outreach programs, including Ishraq, Sougha, and Amal.

Reputed Angel Investors Offer Funding In Exchange For Equity Ownership Interest

Investing in early-stage or startup companies in exchange for an equity ownership interest, reputable angel investors are high-net-worth individuals who provide funding and a straightforward funding procedure. Entrepreneurs and aspiring business owners can find reputable angel investors on Dubai Angel Investors.

Business Incubators Offer Full-Fledged Support

Offering full-fledged support to startups, entrepreneurs, and SME owners, business incubators are another viable source of funding. Business incubators in the UAE, such as Astrolabs, the Dubai Technology Entrepreneur Centre, In5 and FinTech Hive, offer marketing and financing support as well as help entrepreneurs to successfully position within the market launch.

Crowdfunding In Exchange For Equity

Crowdfunding with companies such as Eureeca is another viable option. These equity crowdfunding platforms and providers allow early-stage businesses and SMEs to raise sufficient capital from investors who can range from casual investors to institutional firms, in exchange for equity.

Peer-To-Peer Lending For Creditworthy SMEs

Attaining capital through peer-to-peer lending is an option for many entrepreneurs, startups, and SMEs. Businesses such as Beehive, a platform that offers global investors the opportunity to earn attractive returns by investing in creditworthy businesses, lend money to individuals and small businesses through online services that match lenders with borrowers.

Should you wish to gain further insight into financing options and learn how to get your credible idea off the ground or your small business levelled up, get in touch with SFM today. Our team will use their extensive local market knowledge to advise you on the financing options available. Visit www.sfm.com.


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