Dubai - Mubasher: Emirates Islamic, a leading Islamic financial institution based in Dubai, announced it has become the first Islamic bank to sign an agreement with Emirates Development Bank (EDB) to be part of EDB’s ‘Credit Guarantee Scheme’.
Under the agreement, the two banks will share a commitment to boost the growth of small-to-medium Enterprises (SMEs) in the UAE, according to a press release.
The AED 100 million Credit Guarantee Scheme comes in line with the goals of the National Agenda under UAE Vision 2021 aiming to boost the gross domestic product (GDP) contribution of SMEs to 70% by 2021.
EDB’s scheme also targets economic diversification in the UAE and setting up a post-oil economy.
The scheme offers up to AED 2 million in financing to startups through EDB’s partner banks, upon which EDB would ensure up to 85% of the finance amount.
The initiative also caters up to AED 5 million in financing to existing SMEs, wherein EDB guarantees up to 70% of the finance amount.
Salah Amin, CEO of Emirates Islamic, said: “Emirates Islamic is proud to sign this agreement with EDB, which will greatly boost access to financing and improve the business environment for SMEs. At Emirates Islamic, supporting the SME sector is a top priority, and we will continue to offer them the best in banking solutions, supported by best in class customer service.”
In turn, Faisal Al Bastaki, CEO of EDB, said: “We designed our latest scheme based on the needs of SMEs, and it is aligned with EDB’s commitment to create and offer an integrated portfolio of innovative financing products and solutions, which enhance SMEs’ access to capital.”
The SME sector is a major driver to the growth of the national economy and will boost the UAE’s global competitiveness. As part of our ongoing strategy, we are committed to developing banking solutions that will enable SMEs to effectively contribute to increasing the non-oil GDP and advancing economic diversification,” Al Bastaki added.
According to the Ministry of Economy, the new partnership adds to Emirates Islamic’s commitment towards boosting the SME sector that represents over 94% of the total number of companies operating in the UAE and employs over 86% of the private sector workforce.
