KHALEEJ TIMES, Wednesday, Jun 23, 2021 | Zul Qaadah 12, 1442
Emirates Development Bank, NBQ partner to facilitate financing for SMEs
Emirates:
The Emirates Development Bank (EDB) has signed a Memoradum of
Understanding with National Bank of Umm Al Qaiwain (NBQ) to facilitate
strategic financing options for SMEs in the UAE.
The MoU will cover Credit Guarantee and Co-lending programs for SMEs in the UAE.
This program will help plug the gap in SME lending support and enhance their
contribution to the country’s GDP.
NBQ will offer up to Dh10 million financing to SME’s, and 50 per cent of the
facility amount will be either guaranteed or co-lent by EDB. The program also
aims to support UAE citizens in their startup journey by offering financing
facilities of up to Dh1 million, wherein 60 per cent is guaranteed or co-lent by
EDB.
The MoU was signed by Ahmed Mohamed Al Naqbi, chief executive officer of EDB,
and Adnan Al Awadhi, chief executive officer at NBQ.
In his comments, Ahmed Mohamed Al Naqbi, said: “SMEs are the backbone of our
economy. The UAE Government has placed considerable emphasis on developing the
SME ecosystem and boosting their contribution to UAE’s non-oil GDP. Our MoU with
National Bank of Umm Al Qaiwain will help us facilitate financing through credit
guarantee and co-lending options to allow greater operational flexibility to
SMEs.”
For his part, Adnan Al Awadhi, said: "The NBQ understands the vital role the
SMEs play in building the nation’s economy that is why we have developed
financial solutions to allow the SMEs in the UAE to trade safely and confidently
and gain access to international markets, thereby positioning the UAE as the
global hub of trade and export.”
The Credit Guarantee and Co-lending program provides a robust platform for EDB
and NBQ to increase their financial lending for the SME segment, with a focus on
the priority sectors - namely manufacturing, healthcare, infrastructure, food
security and technology.
The MoU is aligned with EDB’s recently-unveiled strategy, offering direct and
indirect lending for SMEs (Supply Chain, Project and Long-term Finance), an
investment arm for startups and SMEs (accelerator, equity finance, business
growth fund) as well as business advisory services for entrepreneurs, startups
and small companies (coaching, consulting, mentoring, market research).
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