Abu Dhabi:Emirates Development Bank [EDB], a key financial enabler of the country’s economic diversification and industrial transformation agenda, has signed a Memorandum of Understanding [MoU] with Mashreq Bank, one of the leading financial institutions in the UAE, to provide Credit Guarantee programs for SMEs in the country.
Under the agreement, EBD will provide credit guarantees and co-lending programs to Mashreq Bank’s SME customers, to support with expenses towards activities such as the purchase of equipment and fixtures, construction of work premises, business expansion, purchase of inventory, supplies and raw materials as well as general financing needs for payments such as salaries or rent.
The MoU was signed by Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB, and Ahmed Abdelaal, Group CEO of Mashreq Bank.
In his comments on the partnership with Mashreq Bank, Ahmed Mohamed Al Naqbi said: “SMEs are the backbone of UAE’s economy and the government has placed considerable emphasis on developing the SME ecosystem and boosting their contribution to UAE’s non-oil GDP. Our partnership with Mashreq Bank will help facilitate financing through credit guarantee and co-lending options to SMEs and allow greater operational flexibility to the entities. This is part of recently announced EDB’s strategy to enable UAE’s economic diversification and provide financing support to SMEs operating in key sectors.”
On his part, Ahmed Abdelaal, Group CEO, Mashreq said: “SMEs represent more than 94% of companies in the UAE, employing about 86% of the country’s private sector workforce, and generating 52% of the non-oil GDP. Mashreq is delighted to partner with Emirates Development Bank on this initiative, thus ensuring that the UAE’s key value chain drivers; its job-creating SMEs - are provided with better access to financing to meet their operational needs. Supporting businesses has never been as critical as it is now, and we remain focused on providing them with the tools to restructure debt, manage their working capital requirements, and leverage the increasingly dynamic digital eco-system.”
The MoU is part of EDB’s focus to enhance the contribution of SMEs to the country’s GDP. The partnership will focus on providing strategic financing solutions to SMEs – one of the economic pillars of the UAE.
The MoU is aligned with EDB’s recently-unveiled strategy, offering direct and indirect lending for SMEs (Supply Chain, Project and Long-term Finance), 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).
About Emirates Development Bank
Emirates Development Bank [EDB], headquartered in Abu Dhabi, was established under Federal Law by Decree No. 07 of 2011 issued by His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE. It became operational in June 2015. The Bank unveiled its new strategy in 2021 reinforcing its identity as one of the key drivers of the UAE’s economic recovery. EDB offers financial and non-financial support to SMEs, startups and large corporates operating in strategic priority sectors in the UAE, as a step to boost their contribution to the country’s non-oil GDP. The Bank also provides home finance support to the UAE Nationals. EDB operates two branches in Abu Dhabi and Dubai. For more details, visit www.edb.gov.ae
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One of the UAE’s best performing banks for five decades, Mashreq is a leading financial institution with an expanding footprint across the Middle East. We have international offices in Europe, Asia, Africa and the US, and a strong presence in the financial capitals of the world.
As the oldest bank in the UAE, our journey can be traced back to humble beginnings in 1967, followed by periods of rapid growth and strategic expansion. Throughout our history, Mashreq has differentiated itself by pioneering new-to-market concepts and launching unique products and services.
Our innovative approach sets us truly apart, it also continues to win us numerous awards and accolades across all fields including digital banking, the most recent were: Market Leader by Euromoney Cash Management Survey in UAE for Corporates and in the Middle East and Africa for the Financial Institutions , Market Leader by Trade Finance Survey in the UAE and Middle East, Middle East Best Digital Bank by Euromoney Regional Awards for Excellence, the Most Innovative Consumer/Corporate Digital Bank in the UAE and Best Bank in the UAE by World's Best Bank Awards by Global Finance, Most Innovative Bank in the Middle East by EMEA Finance and many others.
For media enquiries, please contact:
Rana Al Borno
Public Relations, Mashreq
Tel: 04 –6083629
© Press Release 2021