Daily Personal Finance Insights – Funding SME’s

Daily Personal Finance Insights – Funding SME’s
20 March 2013

Seed funding and credit guarantees for SME’s

The Mohammed Bin Rashid Fund (MBRF) in Dubai SME, an agency of the Department of Economic Development (DED), has launched two programs for Emirati entrepreneurs with a seed fund for early stage businesses and a Credit Guarantee Scheme (CGS) for growth-oriented SME’s.

MBRF will provide early stage seed capital interest free loans of up to AED 250,000 to entrepreneurs implementing businesses resident in its business incubator on achievement of business milestones, and business loans and will also provide financial guarantees for projects in partnership with banks. 

Consumer prices with largest inflation

The UAE National Bureau of Statistics has revealed the areas with the largest inflation between end of February 2012 and end of February 2013. Beverages and tobacco saw the largest inflation rates growing by 17.67% compared with one year earlier. Education also saw a significant increase of 5.9% and the restaurants and hotels sector recorded inflation of 4.09%.

Refinancing and extending debt

Investment Corporation of Dubai (ICD) has launched a syndication of US $2 billion conventional and Islamic financing facilities to refinance a US $2 billion loan due to mature in August.

The new, five-year senior unsecured financing will replace the remaining US $2 billion five-year tranche of an original US $6 billion three- and five-year loan signed in Aug. 2008, US $4 billion of which was repaid.

Famed investor enters Islamic Finance

Mark Mobius, one of the world's most well-known emerging market investors, is getting into Islamic finance, highlighting the sector's growing attraction as a mainstream asset class, according to Reuters. Mobius will lead the Templeton Shariah Asian Growth Fund, one of three sharia-compliant products that are to be launched at the end of this month by investment house Franklin Templeton.

"I think (the potential for) sukuk will be enormous and the Asia fund should be hundreds of millions of dollars - I'd be disappointed if we don't get that kind of money," said Mobius.

Dubai ranked the world’s 19th most expensive property market

Dubai ranks among the 20 most expensive residential real estate markets in world, according to the latest annual Wealth Report produced by Knight Frank. “The Dubai property market has experienced a significant turnaround and the recovery is gaining strength,” said the Knight Frank report.

Prices of luxury properties rose ranging between US $477 and US $537 per square foot in the final quarter of 2012, which put Dubai in the 19th position among the 20 top cities for cost per square foot.

Dubai saw the second largest price growth, along with Bali amongst the 80 cities in the world tracked by the Knight Frank Index.

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Head of Behavioral Finance
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