Emirates Development Bank launches $27mln credit scheme for SMEs in UAE

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Emirates Development Bank (EDB), a leading bank in the region, held a signing ceremony for the launch of the new Credit Guarantee Scheme, amounting to Dh100 million ($27.2 million) in support of SMEs.

The ceremony was held in the presence of Obaid Humaid El Tayer, Minister of State for Financial Affairs and chairman of Emirates Development Bank, and members of the EDB Board of Directors.

The new scheme aims to boost SMEs’ business activities and pave way for economic diversity in line with the UAE’s move towards a post-oil economy. The Credit Guarantee Scheme is part of EDB’s commitment to support the goals of the National Agenda under UAE Vision 2021, focused on boosting SMEs’ GDP contribution to reach 70 per cent by 2021.

The importance of the Credit Guarantee Scheme is that it provides strategic financing solutions to the SME ecosystem in the UAE, one of the national economy pillars. Emirates Development Bank provides credit guarantee to partner banks in the UAE that can offer up to Dh2 million financing to startups where EDB guarantees their loan up to 85 per cent, and up to Dh5 million financing to existing SMEs where EDB also guarantees up to70 per cent of their loan.

Al Tayer said that the launch of the first phase of the scheme dedicated to SMEs is in line with EDB’s commitment to create and offer an integrated portfolio of innovative financing products and solutions that will enhance SMEs’ access to capital, recognizing that the sector is one of the major growth drivers of the national economy, which will boost the UAE’s ranking in global competitiveness.

He further explained that the scheme provides a solid platform for emerging national companies and entrepreneurs to explore new opportunities through innovation such as smart industries, which serve the country’s efforts of building a knowledge-based economy and contribute to sustainable economic development.

Abdul Aziz Al Ghurair, chairman of the UAE Banks Federation, noted that the Federation gives close attention to the needs of SMEs and has been developing and implementing several major banking initiatives for the sector since 2013. He added that the launch of the new guarantee scheme to boost bank financing for SMEs is one of the most important outcomes of those initiatives, which has been the result of the cooperation between the Federation, represented by the SMEs Financing Committee, and Emirates Development Bank.

He further highlighted that the Federation is committed to continue supporting the move to drive growth for SMEs that have become a major player in economic growth and sustainable economic development.

“We commend the efforts of Emirates Development Bank to support SMEs and the key contributions of this initiative to the UAE banking sector. The UAE Banks Federation is committed to continue developing and providing solutions, initiatives and schemes that will further enhance the role of banks in the sector, which is one of the most important players in promoting business and investment in the country,” Al Ghurair concluded. – TradeArabia News Service

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