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- EDB’s credit guarantee scheme helps UAE SMEs access financing.
Abu Dhabi, United Arab Emirates: The Emirates Development Bank (“EDB” or the “Bank”), an important financial engine for economic development and industrial progress in the UAE, has today recognized and rewarded all banks and fintech companies participating in the Bank Credit Guarantee Scheme ( CGS) partner.
Representatives from EDB’s 10 partner banks gathered at a special award ceremony held at the DIFC Office of the Ministry of Economy. During the event, updates on CGS’ success were shared and recognition awards were presented to partners for their key role in facilitating access to finance for SMEs in the UAE.
EDB is two years into its ambitious five-year strategy to empower SMEs and large corporations in five priority areas: manufacturing, technology, healthcare, renewable energy and food security. The bank is mandated to provide AED30 billion in financing support to 13,500 companies in these sectors by 2026.
EDB launched CGS to support mSMEs in UAE. The scheme aims to help these businesses overcome the challenges of obtaining financing from traditional banks by providing partial guarantees to lending banks. The guarantee comes into effect if the SME fails to repay its financing commitment.
CGS not only provides financial support to SMEs, but also helps them establish a good credit record with banks. This can provide sustainable financing for their business into the future, ensuring long-term growth and success.
His Excellency Abdullah Al Saleh, Undersecretary of the Ministry of Economy, said: “We have seen a significant increase in the deployment and distribution of SMEs in the UAE over the last year thanks to the credit guarantees and co-loan schemes provided by our partners to support SME financing. The partnership has Successfully demonstrating its ability to bridge the funding gap for SMEs and strengthen the UAE’s SME ecosystem, supporting the national agenda to build a strong knowledge-based economy.”
Ahmed Al Naqbi, Chief Executive Officer, UAE Development Bank, said: “Today marks an important milestone in our journey to support the UAE’s economic strength. Our aim is to create a nationwide ecosystem that finances innovation, enhances the bankability and Financial inclusion. This can only be achieved through partnership. We recognize the strong working relationships we have with our partner banks and fintech partners who have played a vital role in the success of CGS. We will continue to work together , to support SMEs, the backbone of our economy. Today, we are also proud to celebrate the deployment of AED 813 million in credit guarantee scheme funding since the launch of our new strategy in April 2021, proving our Commitment to empowering SMEs and driving economic growth.”
The bank invited senior representatives from Commercial Bank of Dubai, National Bank of Umm Al Quwain, Emirates NBD, ADCB, FAB, Mashreq, RAK Bank, National Bank of Fujairah, Dubai Islamic Bank, Emirates Islamic Bank, CEOs and United Founders Fintech, YAP and Beehive received trophies in recognition, highlighting their support of the Credit Guarantee Scheme.
EDB is committed to supporting the growth of SMEs and promoting innovation in the UAE’s business environment. In line with this mission, EDB provides digital services to SMEs in the UAE through the ‘EDB Commercial Banking’ application powered by YAP. The app provides business bank accounts and IBAN numbers within 48 hours, and comprehensive fast, secure and 24/7 banking services. To further support SMEs, EDB has partnered with Beehive to integrate a new digital lending feature that allows eligible SMEs to apply for loans of up to AED5 million directly through the ‘EDB Commercial Banking’ app and receive loans within five days. Get approval or feedback. For a seamless user experience, the app is integrated with UAE Pass. Since its launch in September 2021, the EDB Business Banking App has managed to attract 2,094 customers.
SMEs can also receive support through a range of non-financial products and services, including commercial laboratory, an online platform that provides free essential resources and content to help entrepreneurs at all stages of business development. Entrepreneurs can gain practical pro tips on how to solve common business challenges through short videos.
EDB offers a patient debt approach that emphasizes developmental impact. The bank’s direct and indirect financing has long maturities, high loan-to-value ratios, and low interest rates with an interest grace period.
About the UAE Development Bank
UAE Development Bank [EDB] The UAE Development Bank is an important financial engine for economic development and industrial progress in the UAE. EDB provides financial and non-financial support to businesses of all sizes, from start-ups, SMEs to corporations, to drive economic competitiveness in five strategic priority areas: advanced technology, food safety, healthcare, renewable energy and manufacturing . The EDB was established under Federal Law by Decree No. 07 of 2011 issued by the late Sheikh Khalifa bin Zayed Al Nahyan; and commenced operations in June 2015.For more information, please visit www.edb.gov.ae
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