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Emirates Development Bank (EDB) has launched a Dhs1bn ($272m) equity fund aimed at supporting the growth and global competitiveness of small and medium-sized enterprises (SMEs) in the UAE
Announced during the fourth edition of the ‘Make it in the Emirates’ forum, the Emirates Growth Fund (EGF) will target UAE-based SMEs operating in priority sectors including manufacturing, healthcare, food security, and advanced technology.
The fund is designed to address a critical financing gap for companies that have moved beyond the early stage but are not yet large enough to attract traditional private equity.
Investments will range from Dhs10m to Dhs50m per company, typically those generating at least Dhs10m in annual revenue.
Strategic goals
The initiative supports the UAE’s national Operation 300bn strategy, which aims to increase the industrial sector’s contribution to GDP to Dhs300bn by 2031.
“EGF is a bold, future-focused step that provides growth-stage companies with the capital, expertise, and support needed to scale,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and chairman of EDB. “It enhances industrial competitiveness and strengthens supply chain resilience.”
Dr Ahmad Belhoul Al Falasi, UAE Minister of Sports and chairman of EGF, said the fund is designed to address the “missing middle” of SME funding. “These are companies that are too advanced for venture capital, too entrepreneurial for private equity, but too important to ignore,” he said.
Governance and structure
The fund will be governed by a board chaired by Al Falasi, with Najla Ahmed Al Midfa as vice chair and MD. Other board members include Mariam Saeed Ghobash, Mohammed Huraimel Al Shamsi, Khalfan Juma Belhoul, Hassan AlSayegh, and Stephen Welton.
According to Al Midfa, EGF’s approach goes beyond capital. “We are not just writing cheques, we are helping build the next generation of UAE economic champions,” she said.
First investment in healthcare
The bank also announced EGF’s first investment in the healthcare sector through a partnership with Tarmeem Healthcare Holding.
The deal marks the start of a portfolio expected to deliver long-term national value across strategic industries.
The fund will operate through active minority investments, allowing founders to maintain operational control while benefiting from strategic support in areas such as governance, operations, and expansion.
By supporting high-potential SMEs in line with the UAE’s diversification agenda, EGF aims to enhance industrial capacity, stimulate job creation, and contribute to the country’s long-term economic resilience.
