Dubai – Mubasher: Emirates Development Bank (EDB) on Monday announced the launch of an AED 100 million Credit Guarantee Scheme in a bid to support small and medium-sized enterprises (SMEs).
The programme aims to boost SME business activities and lay the ground for accomplishing economic diversity in line with the UAE’s move towards a post-oil economy, according to the bank’s statement.
The step comes along with the bank’s commitment to support the goals of the National Agenda under the UAE Vision 2021, focused on boosting SMEs’ GDP contribution to 70% over the next two years.
The new programme will provide strategic financing solutions to the SME ecosystem in the UAE, one of the national economy pillars.
Under the scheme, EDB provides credit guarantee to partner lenders in the UAE that can offer up to AED 2 million financing to startups where EDB guarantees their loan up to 85%, and up to AED 5 million financing to existing SMEs where EDB also guarantees up to 70% of their loan, the statement said.
Obaid Humaid El Tayer, Minister of State for Financial Affairs and chairman of EDB, pointed out that launching the first phase of the scheme is in line with EDB’s commitment to create a full-fledged portfolio of innovative financing products and solutions that will prop up SMEs’ access to capital.
He added that the fresh programme provides a solid platform for emerging national firms and entrepreneurs to explore new opportunities through innovation such as smart industries.
EDB has signed agreements with several leading banks in the UAE, including Commercial Bank of Dubai (CBD), National Bank of Ras Al Khaimah (RAKBANK), Mashreq Bank, Al Masraf, National Bank of Fujairah, and Commercial Bank International.
It also eyes further expansion by signing with additional lenders as part of EDB’s commitment towards backing up the SME ecosystem to support the goals of the National Agenda under UAE Vision 2021
