Emirates Development Bank has signed an agreement with Emirates NBD to provide increased financial support to Small and Medium Enterprises in priority sectors in the UAE.
As part of the deal, Emirates NBD will offer up to Dh5 million ($1.36m) of financing to small and medium enterprises with 50 per cent of it being guaranteed by EDB.
The agreement forms part “of our endeavour to support the country’s economic diversification plans and bridging the funding gap for SMEs operating in priority sectors in the UAE”, said Ahmed Al Naqbi, chief executive of EDB.
“We look forward to facilitating easy access to financial sources for SMEs, supporting the UAE’s goals to build a robust knowledge-based economy and contributing to sustainable economic development.”
EDB was founded in 2011 through a merger between the Emirates Industrial Bank and Real Estate bank. It aims to provide Dh30 billion in financing over the next five years to support the UAE's efforts to more than double the size of its industrial sector by 2031.
It will fund industries such as healthcare, infrastructure, food security and technology, and help generate 25,000 jobs.
“We are pleased to join hands with EDB as part of our long-term, strategic commitment to further the growth of small businesses in the UAE through appropriate and timely financing support, enabling more entities to access credit easily to grow their businesses,” Shayne Nelson, group chief executive of Emirates NBD, said.
The UAE’s economy is expected to grow by more than 4 per cent this year as the country continues to introduce initiatives to help it recover from the coronavirus pandemic-induced slowdown, Minister of Economy Abdulla bin Touq said earlier this month.