MBRIF’s Shaker Zainal on fixing the financing gap holding back industrial startups
The head of Mohammed Bin Rashid Innovation Fund discusses why access to capital is only part of the equation for industrial startups and how financial institutions and ecosystem enablers can work more effectively together
09 June, 2026
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Industrial startups are often seen as the backbone of long-term economic diversification, yet their path to scale is rarely straightforward. Unlike digital-first ventures, these businesses tend to face heavier upfront costs, longer development cycles, and more complex operational realities, making access to suitable financing and ecosystem support a critical determinant of success.
In the UAE, efforts to bridge this gap are becoming more structured, with a growing emphasis on aligning capital, policy, and innovation support to better serve high-potential industrial ventures. The Mohammed Bin Rashid Innovation Fund (MBRIF) sits at the centre of this approach, working to de-risk financing for innovative companies while also helping them build the capabilities needed to grow sustainably.
In an interview with Gulf Business, Shaker Zainal, head of MBRIF, discusses why access to capital is only part of the equation for industrial startups, how financial institutions and ecosystem enablers can work more effectively together, and what more is needed to help scale ventures in a commercially sustainable way. He also outlines how the UAE is positioning itself as a regional hub for industrial innovation, and the role MBRIF plays in turning national ambition into practical support for emerging businesses.
What do you see as the biggest barriers industrial startups face today when it comes to accessing the right financing to scale?
I think it is useful to look at this from a slightly broader perspective, because the challenge is often simplified as access to capital, when in reality it is more about alignment. Industrial startups operate in a very different context compared to many other sectors. They often require higher upfront investment, longer production and revenue cycles, and they tend to carry more complex operating and risk profiles. When you look at it through that lens, it becomes clear that traditional financing structures do not always fit naturally with how these businesses grow.
At the same time, there are also practical challenges across the ecosystem. Many founders are not always fully aware of the financing solutions available to them, and in some cases the support landscape can feel fragmented, which makes it harder to navigate. So the real issue is not simply whether capital exists. It is whether financing is structured in a way that supports growth, and whether innovative businesses can access it with clarity and confidence. That is where the real opportunity lies.
How can financial institutions, government entities, and ecosystem enablers work together more effectively to support industrial startups and innovation-led growth?
This is really about bringing together complementary strengths. Financial institutions are central to the system because they provide capital and have the expertise to assess and manage risk. Government-backed platforms and ecosystem enablers, on the other hand, can play an important role in reducing that risk, improving access to support, and helping create more flexible pathways for growth.
When those different elements are aligned, you start to see a much more supportive environment for industrial startups. At MBRIF, for example, our ‘Guarantee Scheme’ is designed to create that kind of alignment. By working with financial institutions to de-risk lending, we are able to help high-impact ventures access financing without giving up equity, which is often a key consideration for founders focused on long-term value creation.
But the broader opportunity is to make the ecosystem feel more connected. It is about ensuring that solutions are not only available, but also accessible, well-communicated, and aligned with the real needs of businesses. When government entities, financial institutions, innovation platforms, and private sector stakeholders work together effectively, support becomes easier to navigate, collaboration becomes more practical, and capital flows more efficiently to the companies that are ready to scale.
What role does MBRIF play in supporting industrial startups beyond just providing access to finance?
At MBRIF, we have always taken the view that access to finance is only one part of the equation. Financing is critical, but what we have consistently seen is that capital on its own does not determine whether a company will scale successfully. Businesses also need the right support around that capital to grow in a structured and sustainable way.
Through our Guarantee Scheme, we help innovative businesses access non-dilutive financing, which is particularly important for founders who want to retain ownership while building for long-term growth. A good recent example is Fragrance Delivery Technologies, which received a Dhs7.2m MBRIF guarantee to support its advanced manufacturing expansion in the UAE, including automation upgrades aligned with Industry 4.0 standards. That kind of support can be critical for industrial businesses operating at an important stage of growth.
At the same time, through our Innovation Accelerator Programme, we provide mentorship, strategic guidance, and access to a strong network of partners and experts. This helps businesses strengthen their models, prepare for scale, and make more informed decisions as they grow.
So our role is really about connecting those two dimensions. We help industrial startups access the capital they need, but we also support them in building the capabilities, relationships, and ecosystem connections that allow them to scale with greater confidence. That broader support is what helps move the conversation from funding access alone to real growth enablement.
What more needs to be done to help high-potential industrial ventures scale in a way that is commercially sustainable and impactful?
I think this is where the conversation is naturally evolving. For a long time, the focus was mainly on helping businesses get established. Increasingly, the priority is how we help high-potential ventures move to the next stage and scale in a way that is commercially viable, operationally sound, and capable of delivering long-term impact.
Scaling brings a very different set of requirements. It is not only about funding. It is also about having the right ecosystem around the business. That includes access to markets, the ability to build partnerships with larger industry players, and access to expertise that supports both operational and strategic growth. It also means having financing structures that are aligned with longer-term business realities rather than short-term constraints.
At MBRIF, we try to reflect that shift in how we support innovative businesses. Through the Guarantee Scheme, we address access to capital. Through the Innovation Accelerator Programme, we focus on capability building, mentorship, and ecosystem connectivity.
When those elements come together, businesses are not just able to sustain themselves. They are in a much stronger position to scale with clarity, resilience, and long-term relevance.
How do you see the UAE positioning itself as a hub for industrial innovation and startups?
What is quite distinctive about the UAE is the way different elements of the ecosystem come together. There has been a clear and consistent focus on building a strong foundation for innovation, whether that is through policy, infrastructure, access to capital, or long-term national strategies. Initiatives such as Operation 300bn reflect that commitment, particularly when it comes to strengthening the industrial sector and increasing its contribution to the economy.
What we are seeing now is the next phase of that development, and that is about enabling innovative businesses not only to launch, but to scale. Announcements made at Make it in the Emirates 2026 reinforce that direction very clearly.
The UAE announced Dhs180bn in industrial procurement opportunities over the coming decade, with plans to localise more than 5,000 products across sectors linked to economic, food, and healthcare security. That sends a strong signal about the scale of opportunity available for industrial innovators and startups in the market today.
At MBRIF, our role is to support that journey by enabling access to finance, providing strategic guidance, and connecting businesses to the right ecosystem, partnerships, and growth opportunities. That combination of policy direction, market opportunity, capital, and ecosystem support is what positions the UAE as a highly competitive hub for industrial innovation and high-growth ventures.
