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The Emirates Development Bank (EDB) and Emirates Islamic have signed an agreement to collaborate on a joint credit guarantee scheme to support the financial inclusion of small and medium enterprises (SMEs) in the UAE.
Emirates Islamic is the 11th commercial bank to join EDB’s credit guarantee scheme platform, which provides favorable financing solutions to SMEs. Under the partnership agreement, EDB will guarantee 50% of the financing provided by Emirates Islamic to eligible SMEs. The two banks will also collaborate to identify further opportunities to enhance their banking solutions.
Ahmed Mohamed Al Naqbi, Chief Executive Officer of the UAE Development Bank, said: “EDB remains committed to strengthening our country’s SME ecosystem and supporting the nation’s sustainable economic development, particularly in five key priority areas. We are delighted to welcome Emirates Islamic to us An ever-expanding group of commercial banking partners, our shared aim is to facilitate access to financing for SMEs that contribute to the UAE’s non-oil GDP.
Salah Mohammed Amin, CEO of Emirates Islamic, said: “As a home-grown Islamic financial institution, supporting the UAE’s SME sector is a priority for Emirates Islamic and we are proud to partner with EDB. This reflects our shared commitment to supporting the UAE’s sector. growth as we work to strengthen the overall SME business ecosystem and make financing more accessible.”
He added: “SMEs are a key driver of Emirates Islamic’s growth strategy and we offer a wide range of business banking products and services to meet the needs of companies in this key sector.”
As the UAE’s development bank, EDB’s mandate includes providing AED30 billion (US$8.16 billion) in financing to grow the UAE economy in five strategic sectors by 2026, of which AED5 million will be allocated through a credit guarantee scheme .
In FY2022, the EDB approved AED6.1 billion in financing, an increase of 673% over the previous year. A total of AED1.8 billion in SME financing was approved in FY2022, an increase of 387% over FY2021 and a 45% increase over the previous quarter. This includes direct financing of AED 1.2 billion and indirect financing of AED 611 million through EDB’s credit guarantee scheme with partner commercial banks. – trade arab news agency
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