Emirates Development Bank partners with Commercial Bank of Dubai to offer funding support for UAE SMEs
The programme will provide credit guarantees and co-lending schemes to start-ups in priority sectors
Emirates Development Bank signed a memorandum of understanding with Commercial Bank of Dubai to offer credit guarantees and co-lending programmes to small and medium-sized enterprises in priority sectors in the UAE.
“Through our combined efforts, we look forward to extending easier access to financial sources, strengthening the SME ecosystem and supporting the UAE’s goals to build a robust, knowledge-based economy,” Ahmed Mohamed Al Naqbi, chief executive of EDB, said.
As part of the agreement, EDB will provide a credit guarantee or co-lending programme to CBD’s SME customers within certain sectors. It allows CBD to offer financing of up to Dh10 million to an SME, with 50 per cent of this either guaranteed or co-lent by EDB, a statement from the lender said.
EDB was founded in 2011 after a merger between the Emirates Industrial Bank and the Real Estate bank. It aims to provide Dh30 billion ($8.17bn) 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.
“Our agreement with the EDB is a perfect example of public and private sectors partnering to support SMEs – a vital contributor to the economy of the UAE,” Bernd van Linder, chief executive of CBD, said.
CBD will provide SMEs with a digital business account, which can be opened digitally and in real time. The lender will also offer a range of loans, including trade and working capital finance, loans against point of sale as well as asset-backed lending, the statement added.
The programme also aims to offer financing facilities of up to Dh1m to Emirati entrepreneurs, whereby 60 per cent will be guaranteed or co-lent by EDB, the lender said.
Published: June 2, 2021 05:11 PM