Abu Dhabi Department of Finance (DoF) has launched a $1.6 billion (AED 6 billion) supply chain financing initiative to support a range of sectors as part of its efforts to promote small and medium enterprises (SMEs).
The first phase of this initiative is in collaboration with the National Health Insurance Corporation (Daman) and First Abu Dhabi Bank (FAB), aiming to provide liquidity to SMEs in the healthcare sector.
Supported by the SME credit guarantee scheme of Ghadan 21, the project shows the essential commitment of Abu Dhabi to sustain and support SMEs during COVID-19 and beyond, and will initially assist SMEs in the healthcare sector before being expanded to other banks and sectors.
The program is of considerable benefit to SMEs as it promotes accelerated payment of their receivables, thus reducing their working capital costs.
According to the Abu Dhabi Chamber, In 2019, SMEs in Abu Dhabi accounted for 29 percent of GDP and 44 percent of the non-oil economy, supporting such companies is a crucial component of the diversification strategy of Abu Dhabi to move towards a knowledge-based economy.
Jassem Mohammed Bu Ataba AlZaabi, Chairman of the Abu Dhabi Department of Finance said, “SMEs are the lifeblood of the economy and the key to long-term sustainable growth for the Emirate of Abu Dhabi. As part of our forward-looking fiscal sustainability strategy, we are proactively launching this initiative to underpin continued liquidity for SMEs in Abu Dhabi. On behalf of the Department of Finance, I would like to thank our partners Daman and FAB for participating in this initiative and I am confident that our aligned vision will ensure its success.”
“FAB is fully committed to the economic objectives of Abu Dhabi, including supporting the ongoing development of a world-leading healthcare ecosystem within the Emirate. This initiative will provide SMEs in the Emirate with the necessary liquidity to continue their sustainable growth while maintaining healthcare supply chains throughout the COVID-19 pandemic response and beyond. We are proud to partner with the Department of Finance and Daman to further strengthen the support for SMEs within the healthcare sector at a vital time.”
“The UAE has made remarkable strides as a leading nation in the global healthcare landscape. It would not be possible without the vital contributions of the many important SMEs within the healthcare sector. We are pleased to partner with the Department of Finance and FAB to ensure business continuity and liquidity for those committed to protecting the health and safety of Abu Dhabi citizens and residents. I am confident that this scheme will significantly contribute to sustaining and promoting our world-class healthcare sector in the Emirate,” stated Hamad Al Mehyas, Chief Executive Officer, Daman.