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Venture Debt

Provides funding towards UAE based SMEs within Defense, Security and Aviation sectors for the expansion of operations, development of capabilities and innovation of products and solutions. SDF has launched the Venture Debt Program in Nov 2019, with an allocated fund of AED 700 million.

OVERVIEW

The Venture Debt Program was launched by The Strategic Development Fund with the aim to provide loans to local private SMEs at favorable terms

Flexible collateral requirement

Competitive interest rates

Low borrower contribution

CRITERIA

SECTOR

  • Defense & Security
  • Aviation Sector

OWNERSHIP

  • The shareholding of the company must be 51% Emirati owned and managed.
  • Free zone companies serving UAE Government contracts

LOCATION

  • The Company should be based in the UAE

FUNDING

  • Capex and supply chain financing: AED 10M -60M
  • Innovation financing AED 5M – 20M

VALUE ADD IN THE UAE

The company business should add value in the UAE through:

  • Emiratization
  • Local integration, assembly, production or design and development
  • Localization of the supply chain

BORROWER CONTRIBUTION

  • A certain % of shareholder in business is required and this varies on a case by case bases.