The Emirates Development Bank (EDB), a key financial enabler of the country’s economic diversification and industrial transformation agenda and Emirates NBD, a leading banking group in the MENAT (Middle East, North Africa and Turkey) region, have entered into an agreement to offer a credit guarantee scheme for small and medium-sized enterprises (SME) in the country.
The Memorandum of Understanding (MoU) with Emirates NBD is part of the bank’s shared commitment to boost the SME ecosystem in the UAE and enhance the contribution of SMEs to the country’s GDP. The partnership between the two banks will focus on providing strategic financing solutions to SMEs.
Under the partnership, EDB will offer financing guarantee coverage of up to 50 percent of the facility amount being lent to SME customers by Emirates NBD, subject to a maximum of $13.6 million for larger SMEs and up to $136,128 for smaller customers.
The credit guarantee program offers a robust platform for Emirates NBD and EDB to enhance lending for SMEs with a focus on priority sectors such as manufacturing, healthcare, infrastructure, food security and technology.
Ahmed Mohamed Al Naqbi CEO – EDB
“EDB is pleased to sign the MoU with Emirates NBD as part of our endeavor to support the country’s economic diversification plans and bridging the funding gap for SMEs operating in priority sectors in the UAE. In collaboration with Emirates NBD, we look forward to facilitating easy access to financial sources for SMEs, supporting the UAE’s goals to build a robust knowledge-based economy and contributing to sustainable economic development.”
In his comments, Mr. Shayne Nelson, Group CEO of Emirates NBD said, “As a leading bank in the country, Emirates NBD has always championed the needs of homegrown SMEs that contribute to the UAE economy. We are pleased to join hands with EDB as part of our long-term, strategic commitment to further the growth of small businesses in the UAE through appropriate and timely financing support, enabling more entities to access credit easily to grow their businesses.”
The MoU is aligned with EDB’s recently-unveiled strategy, offering direct and indirect lending for SMEs (supply chain, project and long-term finance), an investment arm for startups and SMEs (accelerator, equity finance, business growth fund) as well as business advisory services for entrepreneurs, startups and small companies (coaching, consulting, mentoring, market research).
