- March 16, 2021
- Posted by: Waqas Siddiqui
- Category: Business & Economy
Abu Dhabi Targets Innovative Companies with AED 2bn Investment Programme
Last year, Abu Dhabi’s Investment Office planned to provide financial and non-financial incentive programmes with an estimated value of AED 2 billion (USD 450 million) from 2021 onwards, targeting innovative companies in high growth areas. Through this innovation programme, Abu Dhabi aims to show the world that it is open for business and is committed to entrepreneurship.
Despite the funds from the innovation program being focused on all the sectors of the economy, the primary emphasis will be to allocate funds for start-ups, entrepreneurs, as well as SMEs (Small Medium Size Enterprise). The program will also provide non-financial incentives such as consulting services, connect the companies to potential revenue streams and provide them with opportunities to look at policy and how they may be able to participate in changing policy and regulations.
Abu Dhabi Economic Stimulus Package targeting SMEs
In addition to Abu Dhabi Investment program – 2021, several other initiatives were also introduced to support the startups and SMEs in the Emirate. One of such initiatives is the economic relief scheme which includes 16 Initiatives aimed at reducing the costs of living and supporting businesses in the emirate.
Abu Dhabi’s Department of Finance collaborated with three of the emirate’s top lenders to expand the SME Credit Guarantee Scheme as part of Abu Dhabi’s economic stimulus programme. Under the deal with Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank and First Abu Dhabi Bank, the government will guarantee up to 80% of the value of the credit guarantee scheme to SMEs. Similarly, the investor-friendly initiatives that the government launched in 2020, following the outbreak of the pandemic has had a positive impact on the economic recovery and in the stabilization of the jobs in the Emirate.
Investment Opportunities – Abu Dhabi
With the initiative, Abu Dhabi has shown its commitment in reaching out to international investors to establish their presence in the Emirate. The latest supportive measures taken by the government will accelerate the growth in startups and international investments in Abu Dhabi and contribute to economic recovery. It will also reduce the cost of business operations for the existing companies, providing adequate time for the companies to recover, especially the SMEs in the aftermath of Covid-19 pandemic.
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