UAE Federal Government fully-owned financial entity Emirates Development Bank (EDB) has partnered with Dubai-based retail and corporate banking service provider National Bank of Umm Al Qaiwain (NBQ) to facilitate strategic financing options for small and medium-sized enterprises (SMEs) in the country.
The Memorandum of Understanding (MoU) signed by the financial providers will cover Credit Guarantee and Co-lending programs which will help to plug the gap in SME lending support and enhance their contribution to the country’s GDP.
NBQ will offer up to $2.72 million financings to SMEs, and 50 percent of the facility amount will be either guaranteed or co-lent by EDB. The program also aims to support UAE citizens in their startup journey by offering financing facilities of up to $0.27 million, wherein 60 percent is guaranteed or co-lent by EDB.
The MoU was signed by Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB, and Adnan Al Awadhi, Chief Executive Officer at NBQ.
Ahmed Mohamed Al Naqbi CEO – EDB
“SMEs are the backbone of our economy. The UAE Government has placed considerable emphasis on developing the SME ecosystem and boosting their contribution to UAE’s non-oil GDP. Our MoU with National Bank of Umm Al Qaiwain will help us facilitate financing through credit guarantee and co-lending options to allow greater operational flexibility to SMEs.”
“The NBQ understands the vital role the SMEs play in building the nation’s economy that is why we have developed financial solutions to allow the SMEs in the UAE to trade safely and confidently and gain access to international markets, thereby positioning the UAE as the global hub of trade and export,” Mr. Al Awadhi stated.
The Credit Guarantee and Co-lending program provides a robust platform for EDB and NBQ to increase their financial lending for the SME segment, with a focus on the priority sectors namely manufacturing, healthcare, infrastructure, food security and technology.
The MoU is aligned with EDB’s recently-unveiled strategy, offering direct and indirect lending for SMEs, 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).
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.OK
Subscribed
Welcome to GCC Business News Subscriber's Club
Thank you very much for choosing GCC Business News to be an important part of your professional life. You will receive a confirmation e-mail. Please check SPAM or UPDATES folder
