When choosing between the Khalifa Fund and the Mohammed Bin Rashid Innovation Fund (MBRIF), it boils down to your startup's ownership, sector, and goals. Here's the key difference:
Both funds provide non-dilutive funding, meaning you retain full ownership of your business.
| Criteria | Khalifa Fund | MBRIF |
|---|---|---|
| Eligibility | Emirati-owned startups | Open to all nationalities |
| Sector Focus | Broad (agriculture, retail, ICT, etc.) | Innovation-focused (AI, healthcare, etc.) |
| Funding Type | Grants, interest-free loans | Loan guarantees, 0% interest loans |
| Support | Mentorship, training, local market access | Accelerator, investor connections |
| Fund Size | AED 1.3 billion disbursed | AED 2 billion allocated |
Which one is for you?
Both funds are essential pillars of the UAE’s entrepreneurial ecosystem, supporting startups with different needs and ambitions.
The Khalifa Fund for Enterprise Development is a key initiative in the UAE, designed to support Emirati entrepreneurs across various industries like agriculture, retail, ICT, and manufacturing. By driving business growth and creating job opportunities, the Fund has made a significant impact on the nation’s economic landscape [1].
Focused on empowering UAE nationals, the Fund promotes innovation through structured training, mentorship, and business development programmes. Its holistic approach combines financing with ongoing support to encourage economic diversification and sustainable growth.
One of the standout features of the Khalifa Fund is its non-dilutive funding model. This ensures entrepreneurs retain full ownership of their businesses while gaining access to financial resources and expert guidance, enabling them to scale their ventures effectively.
The Khalifa Fund offers more than just financial assistance - it addresses a wide range of business development needs. Entrepreneurs can access interest-free or subsidised loans of up to AED 2 million, providing significant capital without the burden of traditional interest payments [1]. Additionally, select programmes offer non-dilutive grants, allowing startups to secure seed funding without giving up equity. For example, the Ibtikari programme combines tailored mentorship with targeted funding to fast-track startup growth.
Beyond financing, the Fund provides tax-free incentives and support for business setup, helping entrepreneurs navigate administrative hurdles. Partnerships with incubators further enhance opportunities by connecting founders with potential collaborators, customers, and strategic partners within the UAE’s startup ecosystem.
The support doesn’t stop at funding. Entrepreneurs gain access to training sessions, workshops, and advisory services aimed at ensuring long-term success and sustainability for their businesses.
The Khalifa Fund is exclusively available to UAE nationals who present innovative business ideas with the potential for economic impact. Applicants must propose ventures that are either new, in their early stages, or ready for expansion. A detailed business plan demonstrating viability, sustainability, and profitability is essential for consideration.
Key evaluation criteria include the potential for job creation and projects that prioritise sustainability, innovation, and technology adoption. Businesses that incorporate eco-friendly practices, digital transformation, or contribute to the UAE’s knowledge-based economy are given priority. The Fund supports a variety of sectors, including agriculture, retail, ICT, manufacturing, and services [1].
The application process for the Khalifa Fund is straightforward. Entrepreneurs start by registering on the Fund’s official portal, where they can create a profile and access the necessary application forms.
Applicants must submit a comprehensive business plan detailing the project’s scope, market analysis, financial projections, and timeline for implementation. Supporting documents, such as Emirates ID, proof of UAE nationality, feasibility studies, relevant permits, and CVs, are also required.
Once submitted, applications undergo an initial review and interview with Fund representatives. Successful candidates move on to a detailed evaluation and due diligence phase. If approved, they receive a funding decision and sign an agreement outlining the terms, conditions, and ongoing support provided by the Fund.
For additional resources, entrepreneurs can explore community platforms to network and seek expert advice.
The Mohammed Bin Rashid Innovation Fund (MBRIF) is a government-backed initiative under the UAE Ministry of Finance aimed at transforming groundbreaking ideas into successful ventures. With a substantial AED 2 billion fund, MBRIF focuses on supporting startups that enhance the UAE's knowledge economy and global standing [1][2].
Unlike traditional funding methods, MBRIF doesn’t offer direct cash grants or take equity. Instead, it provides non-dilutive financial tools such as 0% interest loans and loan guarantees. This approach allows founders to retain full ownership while scaling their businesses efficiently [1][2].
The fund is designed to help startups move from prototype to market-ready products, particularly in key sectors like technology, healthcare, and sustainability - areas critical to the UAE's economic diversification goals. Notably, MBRIF is open to both Emirati and international founders, as long as their innovations align with the UAE's strategic priorities and are based in the country [1][2][4].
MBRIF offers a suite of support options, including 0% interest loans, loan guarantees, and access to its equity-free Accelerator, which provides mentorship and connections to investors [1][2][4][7].
The program’s impact is evident through its success stories. For instance, Metguard, part of MBRIF Cohort 9, developed a patented eco-friendly metal passivation technology that extends the lifespan of metals by two to three times while cutting maintenance costs by up to 50% [5]. Similarly, The Waste Lab has diverted over 300 tonnes of organic waste from UAE landfills by using innovative composting methods, contributing to the nation’s circular economy goals [5].
MBRIF is geared towards startups with scalable, disruptive technologies that align with the UAE’s vision for innovation. Priority is given to companies in sectors such as AI, technology, sustainability, clean energy, healthcare, education, water, transport, and space - industries that promise both commercial success and societal benefits [1][2][5].
To qualify, applicants must present scalable prototypes or early-stage products with clear commercial potential. The evaluation process focuses on the venture's ability to deliver significant economic or societal impact while aligning with the UAE’s strategic objectives. Both Emirati and international entrepreneurs are welcome, provided their startups are based in the UAE and contribute to the local innovation ecosystem [1][2][4].
The application process starts with submitting a detailed business proposal that outlines the innovation, market potential, and growth strategy [1]. Applicants must also provide a working prototype or proof of concept, market analysis, financial projections, and team credentials that demonstrate alignment with the UAE’s strategic sectors [1].
Shortlisted applicants may be invited to pitch their ideas to a selection committee. Successful candidates gain access to the MBRIF Accelerator, where they receive mentorship and support in business development. The selection process places significant emphasis on the quality of the innovation, the breakthrough nature of the technology, and the team’s ability to execute [1].
For additional opportunities, entrepreneurs can join Founder Connects, a platform offering group masterminds, exclusive events, and access to a curated network of investors. This community-driven support further enhances the resources available to MBRIF participants.
Deciding between the UAE's two major funding programmes can be easier with a clear comparison. Here's how the Khalifa Fund and the Mohammed Bin Rashid Innovation Fund (MBRIF) stack up:
| Criteria | Khalifa Fund | Mohammed Bin Rashid Innovation Fund (MBRIF) |
|---|---|---|
| Target Sectors | Covers all sectors, including agriculture, ICT, retail, and manufacturing | Focuses on priority sectors: technology, healthcare, sustainability, space, transport, education, water, and clean energy |
| Funding Type | Interest-free loans, subsidised financing, and grants | Loan guarantees and 0% interest loans (no direct cash grants or equity funding) |
| Total Fund Size | Over AED 1.3 billion disbursed since launch | AED 2 billion allocated for loan guarantees |
| Eligibility | Exclusively for Emirati-owned SMEs | Open to all nationalities involved in UAE-based economic activities |
| Startups Supported | Over 1,200 SMEs in diverse sectors | Focus on innovative startups, including notable examples like Metguard and The Waste Lab |
| Jobs Created | More than 15,000 jobs | Not specified, but emphasises innovation-driven societal impact |
| Additional Support | Offers mentorship, market access, procurement facilitation, and export enablement | Includes an accelerator programme, investor connections, and strategic business guidance |
| Notable Programmes | Initiatives like Ibtikari and SME Champions Programme, which facilitated AED 672 million in procurement deals | Innovation Accelerator with cohort-based support for scaling businesses |
This breakdown simplifies the decision-making process, helping entrepreneurs align their needs with the right funding programme.
The Khalifa Fund has a strong track record of supporting SMEs and creating thousands of jobs. Its SME Champions Programme alone has generated substantial procurement opportunities for local businesses.
On the other hand, MBRIF stands out for its focus on transformative innovations with far-reaching societal benefits.
The comparison table gives a clear picture of what each fund offers, making it easier to decide which one aligns with your startup's goals.
Opt for Khalifa Fund if your startup:
Opt for MBRIF if your startup:
For example, MBRIF is an excellent choice for startups in AI, fintech, or sustainability. Its accelerator programme and loan guarantees provide the tools to scale without giving up equity. Sustainability-focused ventures, in particular, can benefit from MBRIF's emphasis on addressing environmental challenges.
Additionally, MBRIF offers access to networking opportunities through Founder Connects, linking entrepreneurs with investors and industry leaders to maximise the impact of their funding.
Your choice ultimately depends on your startup's ownership structure, sector, and level of innovation.
Selecting the right fund for your startup involves aligning your business's stage, sector, and financial strategy with the fund's offerings. In the UAE, the Khalifa Fund and the Mohammed Bin Rashid Innovation Fund (MBRIF) play distinct roles in supporting entrepreneurs. Here's how you can evaluate which one suits your needs.
Start by examining your ownership structure. If you're an Emirati founder operating in traditional or emerging sectors, the Khalifa Fund could be an excellent fit. It provides a combination of grants, subsidised loans, and structured training through programmes like Ibtikari. This fund also offers strong local market integration and government procurement support, making it a comprehensive resource for startups aiming to establish a foothold in the UAE market.
On the other hand, the MBRIF is tailored for startups driving innovation in fields such as technology, sustainability, and healthcare. It offers loan guarantee schemes and business acceleration programmes, specifically targeting ventures that contribute to the UAE's knowledge-driven economy. For example, MBRIF-backed startups like The Waste Lab have successfully diverted over 300 tonnes of organic waste from UAE landfills, showcasing the fund's focus on impactful, forward-thinking projects [1][2][5].
Your startup's growth stage and sector also play a crucial role in this decision. The Khalifa Fund is ideal for Emirati founders in traditional industries, offering grants and local market integration. Meanwhile, MBRIF is better suited for scaling startups with a focus on innovation, offering loan guarantees and accelerator support to help them expand [1][2].
Industry focus is another key factor. The Khalifa Fund covers a broad spectrum of industries, from agriculture to ICT, making it a versatile option for those targeting diverse market opportunities. In contrast, MBRIF zeroes in on strategic sectors like technology, clean energy, space, and healthcare, aligning with the UAE's vision for innovation-led growth [1][2][6].
Financial terms are equally important. The Khalifa Fund provides direct cash grants and interest-free loans of up to AED 2 million to eligible startups [3]. MBRIF, however, focuses on loan guarantees and seed funding, with no direct cash grants or equity requirements. This difference can have a significant impact on your cash flow and long-term financial planning.
Beyond financial support, community and networking opportunities can be a game-changer. Initiatives like Founder Connects offer UAE entrepreneurs access to targeted networking, resources, and peer collaboration, complementing the financial backing provided by these funds.
Ultimately, your choice depends on your priorities. If direct funding and local market integration are critical, the Khalifa Fund offers a robust solution. If you're focused on innovation and need loan guarantees with accelerator support, MBRIF could be the better option. Both funds provide valuable resources for navigating the UAE's dynamic startup ecosystem, catering to different entrepreneurial paths.
The Khalifa Fund and the Mohammed Bin Rashid Innovation Fund generally target startups or early-stage projects that showcase originality and potential. To qualify, applicants need to present a well-defined business plan, a strong emphasis on innovation, and a clear path for growth and scalability within the UAE market.
Each fund may have its own specific criteria depending on its focus areas, such as technology, innovation, or particular industries. It’s important for startups to thoroughly review the guidelines of each fund to ensure their business goals align with the fund’s objectives and sector priorities.
The Khalifa Fund focuses on providing grants and soft loans, allowing entrepreneurs to obtain funding without giving up any ownership of their business. This means founders can secure the financial support they need while keeping complete control over their ventures.
In contrast, the Mohammed Bin Rashid Innovation Fund (MBRIF) offers equity-based investments, where funding is exchanged for a stake in the startup. While this approach can deliver substantial financial backing, it also means founders share ownership of their business.
Both initiatives serve distinct purposes within the UAE's startup scene, offering customised solutions to meet the varied ambitions of entrepreneurs.
The Khalifa Fund and MBRIF don't just provide financial aid - they offer a full suite of services designed to help startups succeed. These include mentorship programmes, expert advice, networking opportunities, and access to community events. Startups can also tap into peer collaboration, join problem-solving initiatives, and leverage resources like tools and connections to potential investors.
This well-rounded support system ensures that startups in the UAE gain more than just funding. They acquire the insights, relationships, and guidance necessary to thrive in a competitive business landscape.
