Ajman Bank, one of the Shariah-compliant banks in the UAE has signed a Memorandum of Understanding (MoU) with the Emirates Development Bank [EDB], to offer credit guarantee and co-lending for Small and Medium-sized Enterprises (SMEs) in the country.
The EDB-Ajman Bank MoU with Ajman Bank is part of EDB’s commitment to boost the SME ecosystem and the industrial sector in the UAE and thus increase its contribution to the country’s GDP. The partnership focuses on offering strategic financing solutions to SMEs, one of the economic pillars of the UAE.
As part of the MoU, EDB will provide a credit guarantee and co-lending program to Ajman Bank’s SME customers. Ajman Bank will offer up to $2.7 million financing to an SME, and 50 percent of the facility amount will be either guaranteed or co-lent by EDB.
The collaboration also aims to support UAE citizens in the startup journey by offering financing facilities of up to $2,72,258 wherein 60 percent is guaranteed or co-lent by EDB.
“We believe as part of this MoU more businesses especially the SMEs in the UAE will have access to the benefits of our unique financial products and services that will contribute to boosting the country’s development. Our collaboration with the EDB will bring together our collective resources and come at a decisive moment for economic recovery after the pandemic.”
Mr. Ahmed Mohamed Al Naqbi, CEO of EDB, said that “The increased financial accessibility to the SMEs will not only help them develop and grow their business but also boost their contribution to UAE’s non-oil GDP. EDB is committed to bridging the funding gap for SMEs operating in key sectors and as part of this endeavor, we are pleased to work closely with Ajman Bank.”