• First phase with FAB and Daman is designed to support SMEs in the healthcare sector

Abu Dhabi: The Abu Dhabi Department of Finance (DoF) today announced an AED 6 billion supply chain financing initiative to support a variety of sectors, as a key initiative in its commitment to support small and medium enterprises (SMEs).

The first phase of this initiative is in partnership with the National Health Insurance Company (Daman) and First Abu Dhabi Bank (FAB), aiming to provide liquidity to SMEs in the healthcare sector.

Funded by Ghadan 21’s SME credit guarantee scheme, the initiative is a demonstration of Abu Dhabi’s significant commitment to sustain and support SMEs – throughout COVID-19 and beyond – and will initially support SMEs in the healthcare sector, before being extended to include other banks and sectors.

The initiative is of significant benefit to SMEs as it facilitates quick payment of their receivables, thus reducing their costs of working capital. In 2019, SMEs in Abu Dhabi accounted for 29% of GDP and 44% of the nonoil economy[1] –supporting such businesses is a critical element of Abu Dhabi’s diversification strategy to move towards a knowledge-based economy.

Commenting on the announcement, His Excellency Jassem Mohammed Bu Ataba AlZaabi, Chairman of the Abu Dhabi Department of Finance, said: “SMEs are the lifeblood of the economy, and key to long-term sustainable growth for the Emirate of Abu Dhabi. As part of our forward-looking fiscal sustainability strategy, we are proactively launching this initiative in order to underpin continued liquidity for SMEs in Abu Dhabi. On behalf of the Department of Finance, I would like to thank our partners Daman and FAB for participating in this initiative and I am confident that our aligned vision will ensure its success.”

Hamad Al Mehyas, Chief Executive Officer, Daman, stated: “The UAE has made remarkable strides as a leading nation in the global healthcare landscape. This would not be possible without the vital contributions of the many important SMEs within the healthcare sector. We are pleased to partner with the Department of Finance and FAB to ensure business continuity and liquidity for those committed to protecting the health and safety of Abu Dhabi citizens and residents. I am confident that this scheme will significantly contribute to sustaining and promoting our world-class healthcare sector in the Emirate.” 

André Sayegh, Group Chief Executive Officer, FAB said: “FAB is fully committed to the economic objectives of Abu Dhabi, including supporting the ongoing development of a world leading healthcare ecosystem within the Emirate. This initiative will provide SMEs in the Emirate with the necessary liquidity to continue their sustainable growth while maintaining healthcare supply chains throughout the COVID-19 pandemic response and beyond. We are proud to partner with the Department of Finance and Daman to further strengthen the support for SMEs within the healthcare sector at a vital time.”

For more information on Ghadan 21, visit:  www.ghadan.abudhabi/en/home 

For more information on FAB, visit:  www.bankfab.com/en-ae/cib/global-transaction-banking 

-Ends-

About Abu Dhabi Department of Finance

Established in 1962, the Abu Dhabi Department of Finance is mandated to drive fiscal sustainability for the Government of Abu Dhabi. The Department is committed to advancing the economic agenda through the application of fiscal discipline, as well as the optimized deployment of Government resources.

For media inquiries, please contact:
Hani Naser
Hill+Knowlton Strategies
Email: hani.naser@hkstrategies.com  

About National Health Insurance Company – Daman

The National Health Insurance Company – Daman is the UAE’s leading health insurer providing comprehensive health insurance solutions to 2.5 million members in the UAE.

Daman is part of ADQ, one of the region’s largest holding companies with a diverse portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy. ADQ owns 80% of Daman’s shares with the remaining 20% owned by Munich Re who is also a strategic partner.

Daman, a pioneer in health care insurance, drives innovation through a combination of state-of-the-art technology and healthcare-related expertise offered by a highly skilled and knowledgeable workforce. Members benefit from added value through unique offerings such as the disease management programmes. Daman provides a 24/7 customer call centre and medical services authorisation team who are in direct contact with Daman’s network of over 3,000 medical facilities. The company also provides a diverse range of digital services that are unmatched in the UAE.

Daman has set high standards in the health insurance industry and has been awarded a number of internationally recognised awards and quality-focused certifications in a relatively short span of time.

About First Abu Dhabi Bank (FAB)

FAB is the UAE’s largest bank and one of the world’s largest and safest financial institutions. FAB’s vision is to create value for its employees, customers, shareholders and communities to grow stronger through differentiation, agility and innovation.

Headquartered in Abu Dhabi, the bank’s international network spans five continents, providing global relationships, expertise and financial strength to support local, regional and international businesses seeking to do business at home and abroad. FAB is a trusted adviser and regional partner to major institutions, emerging companies and individuals seeking to do business in the UAE, the MENA region and beyond. As an engine of growth for the region, it helps customers to thrive and grow stronger by managing risk, providing access to capital and facilitating trade flows across developed and emerging markets.

FAB continuously anticipates evolving requirements, develops innovative solutions and moves in tandem with customers to offer an extensive range of tailor-made products via its market-leading Corporate and Investment Banking (CIB) and Personal Banking Group (PBG) franchises.

Aligned to the Abu Dhabi Economic Vision, inspired by global standards and guided by the expectations of stakeholders, FAB takes a leading role in fostering development and driving change towards a more sustainable future. FAB sees beyond traditional banking and embraces a challenger mindset. Its ambition is to contribute to social and human development which creates a dynamic, inclusive and tolerant society.

With total assets of AED 955 Billion (USD 260 Billion) as of September-end 2020, FAB is rated Aa3/AA-/AA- by Moody’s, S&P and Fitch, respectively, the strongest combined ratings of any bank in the MENA region. The Bank has been ranked by Global Finance as the Safest Bank in the UAE and the Middle East, and the 32nd Safest Bank globally. The Banker’s Top 1000 World Banks 2020 list, measured by Tier 1 capital, ranked FAB as number one in the UAE, second in the Middle East and #85 across the globe - in addition to ranking the bank #109 by assets in the same list. FAB is also a regional sustainability leader, and a constituent of MSCI ESG Leaders and FTSE4Good EM indices.

For further information, visit: www.bankfab.com, or https://www.growstronger.com/  Grow Stronger or https://www.bankfab.com/en-ae/updates for COVID-19 related updates.

[1] Source: Abu Dhabi Chamber - https://www.abudhabichamber.ae/-/media/Project/ADCCI/ADCCI/Media-Center---Publications/Research-and-Reports/2019/smes-cropped.pdf 

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