|
Hamilton Foundation, an international independent non-profit research foundation, said that Khalifa Fund for Enterprise Development represents a unique and successful experience and through its diversified programs has contributed to strengthen sustainable development in the United Arab Emirates.
The Foundation, in its recommendations to the Department of State, urged countries which receive foreign aid from the United States to follow the example of the Khalifa Fund for Enterprise Development in its efforts for sustainable economic development.
According to a recent report prepared for the U.S Department of State, the Foundations which is committed to designing and implementing projects that help foreign populations create secure and prosperous nations, the Khalifa Fund for Enterprise Development represents a model to be followed by many developing countries or those seeking to achieve higher growth rates.
"The Emirate of Abu Dhabi has highly advanced and effective programs to aid SMEs. These programs warrant consideration in other geographies. We highlight them here because of their unique and thoughtful design, and because lessons learned and early signs of success suggest they could be adopted elsewhere," the report says.
The report emphasizes that countries focused on expanding small and medium enterprises have succeeded in achieving several development goals, such as a high economic performance and decreasing unemployment and human resources development, through a package of integrated financial assistance and vocational and technical training programs for UAE nationals. "In the UAE, several programs related to small and medium enterprises (SMEs) exist in the country and provide lessons for others seeking to build the SME sector and the privately employed middle class," the report added.
Through the Khalifa Fund for Enterprise Development, the emirate of Abu Dhabi has been able to make huge achievements in supporting small and medium enterprises and this includes facilitating access to capital and improving the qualified workforce through unique training programs to boost the entrepreneur leadership of all social classes, according to the report which stresses that adoption of some practices of the Khalifa Fund for Enterprise Development by developing nations will be useful in their efforts to boost their economies and strengthen stability.
US financial aid offered to regional developing countries such as Jordan, Iraq, Egypt, Afghanistan, India and others, do not effectively contribute to boosting development and immediate economic reforms, therefore, the Hamilton Foundation recommends new policies on recipient countries which, it notes, should be encouraged to support SMEs.
The Hamilton Foundation conducted field researches and case studies on Qatar, Indonesia, Morocco and others to explore the procedures made to boost their economic performance.
A delegation from the Hamilton Foundation visited the head office of the Khalifa Fund for Enterprise Development and expressed appreciation of the Fund’s diversified services and their positive effect on the economic performance of the emirate of Abu Dhabi.
Two primary Khalifa Fund programs are directed at SMEs of different size and scope. Its "Bedaya"program constitutes the majority of its portfolio and provides loans of up to 3 million dirhams (approximately $800,000). The Khalifa Fund has also conducted value-chain analysis of opportunities in the SME space and used that knowledge to encourage specific venture ideas among potential entrepreneurs.
A "Zeyada" program deals with larger sums of growth capital. It can provide up to 5 million dirhams (approximately $1.4 million) to larger businesses. Consideration was being given to expanding this program beyond the 20 percent of the Fund’s portfolio it comprised at the beginning of 2010.
The Khalifa Fund also has a program targeting enterprises smaller than SMEs. Known as the "Khutwa" meaning "first step" program, the effort makes loans up to $250,000 UAE dirhams (approximately $68,000) with a focus on home-based businesses. Among such businesses, the Khalifa fund has made a special effort to reach out and support women, including through a "Sougha" program targeting women involved in the production of crafts related to the UAE’s national heritage preservation effort.
The Khalifa Fund has launched a new "Tasnea" program, which is a funding mechanism for larger industrial projects with financing of up to 10 million dirhams (approximately $2.7 million). It is worth noting that at this size, the amount of capital provided is above the typical venture capital range for emerging markets, and close to the lower range of what private equity organizations would provide for growth capital in emerging markets.
The Fund has also developed awareness programs related to business for high school students, people with special needs, universities, and prisons. Among these are the "Raddah" initiative which targets former inmates, the "Ishraq" initiative which provides support for former drug addicts and the "Amal" initiative for the rehabilitation of people with special needs in Abu Dhabi.
The Khalifa Fund, upon instructions from the prudent leadership to expand its services to all regions of the UAE, recently opened branches in Ras Al-Khaimah, Fujairah and Ajman.
|
New
Review
Abu Dhabi International Airport - 41°F
