The UAE’s long-term strategy of strengthening the tourism sector through targeted financing and entrepreneurship support is yielding measurable results, reinforcing the country’s position as a regional hub for tourism-driven economic growth.
Government-backed funding schemes, specialised training programmes, and SME-focused financial tools are accelerating the development of tourism-linked businesses while contributing to job creation, GDP growth, and national diversification objectives.
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Tourism as a Growth Pillar in the UAE Economy
Tourism continues to play a critical role in the UAE’s economic diversification strategy. Beyond its direct contribution to national GDP, the sector supports a wide ecosystem of small and medium-sized enterprises (SMEs) across hospitality, travel services, events, retail, technology, and logistics.
To strengthen this ecosystem, federal and emirate-level institutions have expanded access to financing, reduced entry barriers for entrepreneurs, and introduced long-term capacity-building initiatives designed to improve competitiveness and sustainability.
Khalifa Fund Strengthens Tourism-Linked Enterprises
The Khalifa Fund for Enterprise Development, established in Abu Dhabi in 2007 and expanded nationwide in 2011, remains a cornerstone of SME development in priority sectors, including tourism.
To date, the fund has:
- Supported over 1,200 companies
- Provided approximately Dh1.4 billion in financing
- Helped create more than 15,000 jobs
Its financing packages are structured to ease startup and expansion challenges, covering up to 80 per cent of project establishment costs, with repayment periods extending up to 84 months and grace periods of up to 24 months. Tourism continues to feature prominently among the sectors prioritised under the fund’s programmes.
Sharjah’s RUWAD Programme Expands SME Participation
In Sharjah, the RUWAD programme, launched under the Sharjah Economic Development Department, plays a key role in promoting entrepreneurship by combining financing, training, and advisory support.
RUWAD’s digital platform allows members to access services remotely, including programme enrolment and business advisory assistance. Since its inception, the initiative has:
- Registered 1,909 members
- Trained 9,724 participants
- Financed 106 projects
These efforts have contributed to the growth of tourism-linked SMEs across the emirate, supporting local business participation in the sector.
Emirates Development Bank Drives SME Financing
At the federal level, Emirates Development Bank (EDB) has expanded its role in supporting national priorities through flexible financing solutions and digital tools tailored for SMEs.
Since beginning operations in 2015, EDB has:
- Extended more than Dh30 billion in financing
- Supported over 13,500 companies
- Contributed approximately Dh10 billion to GDP
Through its EDB360 digital platform, startups and SMEs can streamline business account opening and access financing solutions more efficiently, further improving ease of doing business.
Supporting Long-Term National Objectives
The UAE’s tourism financing initiatives form part of a broader strategy to encourage entrepreneurship and increase the number of Emirati-owned businesses to 27,000 by 2033. Since 2002, total incentives provided under various programmes have exceeded Dh800 million, reflecting sustained policy commitment.
In 2024 alone, 44 projects were financed with a combined value of Dh35.17 million, while innovation incubators across the country continued to expand startup support and mentorship.
A Sustainable Model for Tourism-Led Growth
The results highlight the effectiveness of a coordinated public-sector approach that combines financing, training, and digital enablement. By supporting SMEs and entrepreneurs within the tourism ecosystem, the UAE is not only strengthening a key economic sector but also building a resilient foundation for long-term, private-sector-led growth.
As global tourism demand continues to evolve, the UAE’s financing strategy positions businesses to adapt, innovate, and scale ensuring the sector remains a central driver of economic diversification.
