Tourism investment in the UAE is accelerating as the government funds start-ups and SMEs
The tourism sector in the UAE is attracting increasing levels of investment as entrepreneurs tap into strong government-backed funding, supported by tourism’s contribution to GDP, job creation and income diversification.
Sustaining public investment in tourism and hospitality infrastructure has opened new avenues for long-term, sustainable economic growth.
The country has actively promoted investment in tourism by creating a globally competitive investment climate and empowering startups with a wide range of national subsidies.
These programs provide complementary financial solutions, start-up support and business continuity tools aimed at ensuring long-term success.
UAE tourism investment
Over the past decades, the UAE has introduced a number of national funds, accelerators and programs focused on stimulating business, with investment in tourism among the most important sectors.
Together, these programs provide advisory and financial services, capacity building, incentives, access to government procurement opportunities and technical support and training.
They have also helped to strengthen tourism capabilities in the UAE, attract Emirati talent to the sector, diversify exclusive tourism products and promote innovation and digital transformation, creating a supportive ecosystem for SMEs and start-ups.
The World’s Coldest Winter campaign, launched this year under the theme Our Winter for Entrepreneurs, highlights the role of national subsidies in promoting tourism investment.
Tourism is central to the UAE economy, supported by strong global demand, especially during the winter season.
Impact of the Khalifa Fund
Established in Abu Dhabi in 2007, the Khalifa Fund for Enterprise Development has played a leading role in promoting investment in many sectors, including tourism. The fund expanded nationwide in 2011, opening branches in Ajman, Ras Al Khaimah and Fujairah.
Since its inception, the fund has created more than 15,000 jobs, supported more than 5,000 members and provided more than AED1.4bn ($381m) to more than 1,200 companies.
Its programs include financing start-ups and expansions targeting healthcare, education, agriculture, ICT, tourism, industry and innovation projects.
The start-up financing program offers loans of up to 80 percent of project establishment costs, with repayment periods of up to 84 months and grace periods of up to 24 months.
In 2024, the fund delivered business training to 5,658 applicants and group mentoring sessions to 613 participants.
Dubai SME objectives
Since its establishment in 2002, the Mohammed bin Rashid Establishment for SME Development, which is part of the Dubai Ministry of Economy and Tourism, has provided a comprehensive support platform for Emirati entrepreneurs.
The center aims to support the creation of around 8,000 companies over the next eight years, increasing the number of supported Emirati businesses to 27,000 by 2033, compared to 19,000 by the end of 2024.
Total compensation awarded since inception has exceeded AED800m ($218m).
Its financing arm funded 44 projects by 2024 for a total of AED35.17m ($9.58m), bringing cumulative financing since 2015 to AED137m ($37.3m) across 168 projects.
Meanwhile, the Hamdan Innovation Incubator supported 66 entrepreneurs in 2024, up from 29 in 2023, increasing the total number of supported startups to 826.
Sharjah federal funding
Established in 2005 under the Sharjah Department of Economic Development, RUWAD focuses on developing Emirati entrepreneurship skills and promoting a culture of entrepreneurship.
The program currently has 1,909 members, has trained 9,724 participants and has funded 106 projects. RUWAD also launched a smart app that allows members to access finance, training programs and events.
At the government level, the Emirates Development Bank has provided financing worth AED30bn ($8.17bn) since it began operations in 2015. The bank supported more than 13,500 companies and contributed AED10bn ($2.72bn) to GDP.
In October of this year, EDB launched new financing packages to accelerate the growth of businesses by improving access to finance, expanding digital tools, offering mentoring programs and enabling participation in special incubators and accelerators.
Through its EDB360 digital platform, entrepreneurs can open business accounts within minutes, apply for financing without the need for traditional collateral and connect directly with ecosystem partners.
