Dh1 billion allocated to finance SMEs
As per the agreement, the bank will finance the enterprises agreed with Ruwad and that meet the criteria stipulated in the agreement.
Ruwad will evaluate all projects and enterprises submitted by national entrepreneurs and verify their feasibility before providing the technical and administrative support, the necessary facilities and government waivers, and finally apply for the financing from Sharjah Islamic Bank.
Sharjah Islamic Bank (SIB) has allocated a Dh1 billion to finance small-scale corporations that run small to medium size enterprises with the aim to finance all small and medium enterprises (SMEs) in the country. SIB will, also, finance all enterprises carried out by Ruwad Establishment due to the growth witnessed by the small to medium size enterprises (SME) sector, as well as its growing importance on the international level.
HE Ahmed Mohammed Al Midfa, Chairman of Ruwad, said: "The Establishment is indeed interested in nurturing young national entrepreneurs and supporting their enterprises that are in line with national modern development strategies. No doubt, the agreement with Sharjah Islamic Bank will support these goals. We expect this agreement will be a great success and will pave the way for additional future collaborations that serve the interests of both parties in the light of the shared vision. According to the agreement, the Sharjah Islamic Bank will offer maximum finance of Dh2 million for each enterprise. The first instalment will be after one year of receiving the loan with a payback period of 3 years that can be extended upon mutual consent of the bank and Ruwad. Loan and repayment will be specified according to the decision of the bank's Fatwa and Shariah Board, in line with the bank's credit and profit policy, and in consultation with Ruwad."
Al Midfa said: "By signing this agreement, we are striving with our partners in Ruwad to attract greater economic activity to the support of SMEs, while paying special attention to creativity, innovation, and the use of modern technology in enterprises that keep in touch with the developments that are being witnessed in the all economic, cultural and social fields in Sharjah."
© Press Release 2012
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