Banks team up to help SMEs with their finances
The Emirates Development Bank (EDB) is to link up with the National Bank of Umm Al Qaiwain (NBQ) to widen the financing options available to small and medium-sized enterprises (SMEs) in the UAE.
Both banks are set to increase their lending to the SME sector, with the focus mainly on manufacturing, healthcare, infrastructure, food security and technology.
Their agreement will cover credit guarantee and lending programmes. NBQ will offer up to Dhs10 million ($2.8 million) financing to SMEs, and 50% of the facility amount will be either guaranteed or co-lent by EDB. UAE citizens looking to start a business will be offered financing facilities of up to Dhs1m ($272,000), with 60% guaranteed or co-lent by EDB.
Ahmed Mohamed Al Naqbi, chief executive officer of EDB, said: “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 Memorandum of Understanding (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.”
Adnan Al Awadhi, CEO, NBQ, commented: “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.”