Top 5 Financing Options for Your Business Setup in Dubai & all across UAE
Every successful business needs some financing options and funding initially. These funds are used for setting up the business and to ensure a secure business as well.
While these funds are important it is also difficult to know the right place from where you can get these funds if you don’t have enough saved. To open a business in UAE these are a few financing options that you can consider-
1. Family and close friends
It can be intimidating to ask family and friends for support. However, when seeking outside support, tapping those nearest to you is a good first move. Make a business strategy before meeting them.
Explain what you’re selling, how you’ll make it, any demonstrations, samples, or products you have, future profits, risk factors, competition, and how you’ll make money in the project. As friendship is important, be practical and straightforward in a way they can accept. Clearly show whether you’re seeking a loan, an investment, or a donation.
2. Alternative Financing Options
If you would need a small sum, there are microloan companies like Kiva that loan to startups. Other options include community platforms like Kickstarter, which allow you to collect funds from thousands of people who would like to sponsor you and contribute smaller quantities or advance orders in order to make it easier for you to reach your targets.
3. Local funding or financing options
Local support and awareness projects, such as:
1)The Khalifa Fund for Enterprise Development is a non-profit organisation that helps small businesses grow. H. H. Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi, announced the creation of the Khalifa Fund for Enterprise Development (KFED) in 2007, which provides local businessmen with convenient funding options, entrepreneurs and SMEs in the country. The Fund’s goal is to encourage creativity and investment in the UAE, as well as support innovation and funding feasible and effective business initiatives that have a positive effect on the economy in a range of jobs. The KFED Programs are divided into two main categories: funding programs (such as microfinance) and outreach programmes (such as Al Radda) that serve specific groups.
2) Dubai SME is a Department of Economic Development Agency which offers funding and other assistance to start-ups and developed SMEs.
4. Venture capitalists
Another possible source of funds for new enterprises is venture capitalists (VC). There are private equity partners who are able to put up huge sums of money facing high risks and they stand to benefit a lot if the firms they back succeed in launching and maintaining their services.
Once they have a local associate, agent, or company setup agency representing them, most businessmen feel safer about connecting with venture capitalists.
VentureSouq, which invests in high-growth early-stage tech companies; Shorooq Partners, a major seed stage venture capital company; and BECO Capital, an early-stage venture capital fund, are among the most active venture capital investors in the UAE.
5. Angel Investors
If all the other ways don’t work, reach out to angel investors, such as high-net-worth individuals (HNWIs), family offices, or founders trying to broaden guide, and help contribute by investing in emerging ventures.
Ask other founders for recommendations, or use websites like Angel.co, etc to find angels in the UAE. Although individual angel investors can invest for equity or have a loan, angel investment associations hold monthly meetings, tournaments, pool funds (co-invest), and provide networking opportunities.
How Projectfrpjsc helps you
In matters like business setup, people tend to get confused and get in a chaos due to a number of rules and requirements. This is the time when people tend to look for an expert. A lot of chaos can be avoided if guidance is taken from the very beginning. We at Projectfrpjsc are a team of experts who are here to help you with your queries related to all types of business setup. Our banking team includes experienced bankers who understand banking well and can assist to client in terms of selecting the tight bank and preparing the documents as well.
Conclusion
Setting up a company in the UAE provides a lot of benefits and is an easy process with the help of expert guidance. However, finding financing options can seem like a huge task however Projectfrpjsc is here to help for this as well. Finding the right funds for your business is the thing that you need to excel.
