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Need Funding for Your SME? Read about Mohammed Bin Rashid Funds for SMEs!

Mohammed Bin Rashid Fund for SME's goal is to provide Emirati investors with funding for creative pilot projects, including small and medium sized businesses, through committed analysis of the project and provision of suitable potentials for start-up and expansion. Their  goal at Mohammed Bin Rashid Fund for SME is to help the most promising ventures in the UAE by not only providing cash but also by offering advice, direction, and guidance.

This Fund intends to prepare a new generation of entrepreneurs, and not only to provide financial support. Thus in this blog, Dhanguard will extensively discuss the Mohammed Bin Rashid Funds for SMEs. So without much delay, let’s learn!

 

What are the Objectives of the Fund?

  1. The promotion of entrepreneurship among citizens, the growth and diversification of the local and global economies, and the development of investment among citizens.

  2. Encourage young people to start their own businesses, as well as to create and own enterprises that will give them employment.

  3. Giving money to initiatives already underway by state citizens.

  4. To assist state people who are entrepreneurs, offer technological know-how in a variety of disciplines.

What are the Numerous Services provided by this Fund?

The services provided by this fund are listed below-

Fund Requests

  • Asset Financing

  • Loan for Expansion

  • Term Finance Loan

  • Crowdfunding Collateral

  • Seed Capital Loan

  • Credit Loan

  • Local Purchase Orders and Invoices Loan

  • Consultation in Funding

Post Funding Requests (Only applicable for Existing Applicants)

  • Deferral of Loan Installment

  • Extension of Grace Period

  • Letter regarding Liability/ No Liability

  • Payment Rescheduling

What is the Application Process to Acquire the Funding?

The application process is simple and hassle free and is listed below-

Review of Application

Following successful registration, the fund staff reviews the application and provides any necessary guidance.

Credit report

After a thorough examination of the project's economics, economic feasibility study, and attentive risk system checks, predicted financial data and a credit report are created while taking into account the actual business environment.

Presentation

The project is presented to "The Fund Committee" after calculating the entire project cost and compiling a credit report.

Recommendations for the Application

Following the post project presentation, decisions are made in accordance with the advice of the relevant committee members.

Taking Follow up 

Prior to the Fund Loan being disbursed, legal and financial responsibilities that were approved by the committee are fulfilled.

Documents Required:

  • Photocopy of the Applicant’s Passport

  • Well Detailed Resume

  • Project Action Plan

  • Executive Summary

  • Model pertaining to the Establishment Programme

  • Photocopy of Family Book

What is the Criteria to acquire the Funding?

  1. The applicant will not have more than five trade licenses in the Emirate of Dubai for the funding of new projects.

  2. The applicant will not obtain more than six trade licenses in the Emirate of Dubai if funding for existing businesses is involved.

  3. Projects that are fewer than five years old.

  4. The applicant must be at least 21 years old.

  5. Projects and businesses must be fully owned and run by UAE nationals (s)

  6. Dubai should serve as the project's base of operations.

  7. The applicant should express his or her own personal commitment to the creation and implementation of an action plan.

  8. The applicant should invest time and energy in project management.

  9. For the Credit Bank Scheme, the project or business must create a business bank account with the same bank that is providing the finance.

  10. The applicant must be under 65 years of age throughout the payback period to be eligible for the Credit Bank Scheme.

  11. The debt to income ratio shouldn't be higher than 50%.

Additional Terms 

  1. Dubai should be the location of the project's establishment and execution. It may be built both inside and outside of the UAE.

All projects are eligible for funding, with the exception of those in:-

  • Consultative/ Advisory Businesses

  • Nonprofit Organizations

  • Pets Services and Trading

  • Companies that provide rental cars

  • Agencies for Hiring

  • Trading in Goods which are banned Domestically or Internationally

  • Businesses in land and real estate

  • F & B Companies

  • Salons and Beauty Centers

  • Other practises which are not compliant to according to Sharia Law

  • The real estate and construction sectors.

  • Trading Companies for Gold

  • Internet/ Online Cafes.

  • Restaurants and cafes that serve shita.

  • Shops and cafes where tobacco is served

  • Brokerage firms and document clearing houses

  1. For the funded projects, a grace term of no more than 24 months may be given, with a payback and settlement duration of 5 years depending on the Committee's recommendations.

  2. Depending on the nature of the business and the risks involved, the Investment Committee may decide that a minimum rate of 20% for financial contribution by the funding applicant is required. Upon receiving bank permission for project funding, this financial commitment must be made.

  3. Prior to beginning operation of the project, an operations director and an accountant must be selected with funding approval.

What are the Majorly Targeted Projects?

The majorly targeted projects by this fund are enumerated below:

  1. Creative solutions that support Dubai's strategic goals or solutions that address market demands in a particular region.

  2. Entrepreneurs are responsible for bringing up  innovative ideas and fresh perspectives.

  3. Financing Projects that have been active for less than five years.

Can it be Applied Online Also?

Pilot projects that use new technologies are what the Mohammed Bin Rashid Fund for SME intends to fund. Think no longer and submit an application for your Fund if you believe you have a promising proposal for investment projects, which can be tiny, newly founded midsize firms, or early stage existing businesses. Make your goal a reality with their assistance! It is simple to apply for funding online as well. 

To finish the process, follow the six steps listed below:

Registration

Clicking the register button will allow you to create an account with them.

Checking the Email ID

A link will be given to your registered email address once you've registered for it for verification.

Authorizing your Mobile Number

The next step requires you to input a six digit pin code that will be emailed to your registered mobile number.

Creating a login

To make a personal account with your email address as the username, enter a password.

Profile Update

Publish the necessary documents after completing the application form.

Application

They will contact you after your application has been validated and provide more information.

Conclusion

Thus we can conclude as well as assure with the fact that Mohammed Bin Rashid Funds for SMEs can serve as a Financial Boost, if you require funding for your aspiring project or business. Funds like these play a pivotal role in increasing the entrepreneurial spirit of the youth of the country. Thus we hope this blog provided you with insightful information. For more information on other related aspects, feel free to check out our website as well.
 

Frequently Asked Questions

Earning money now is insufficient, since it may not be enough to meet life's financial objectives. As a result, it is critical to spend money. Saving money in the bank is the same as giving up an opportunity to make money. It is crucial to invest carefully in the different plans available on the market, choosing the one that is ideally tailored to your objectives.

With new technologies and goods, the investment market is rising by the day. The conditions for investing in different forms of investment instruments differ depending on the providers in the UAE.

Expats can invest in stocks, bonds, real estate, cash, UAE mutual funds, or other forms of funds in the UAE.

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