Global ports operator DP World has signed an initial agreement with Emirates Development Bank (EDB) to provide trade financing to small and medium enterprises and support their growth.
As part of the agreement, EDB and DP World will provide finance to SMEs at competitive rates through the port operator's trade finance platform, DP World said on Wednesday.
“We always aim to unlock new geographies to enable global trade and empower SMEs to reach their goals,” Sultan bin Sulayem, group chairman and chief executive of DP World, said.
“This partnership will connect SMEs in the UAE with a wider range of financing options that allow them to trade across borders.”
SMEs are the backbone of the UAE economy, accounting for 98 per cent of the companies operating in the country.
Developing the sector and growing the start-up ecosystem are among the main priorities of the government as it chalks out the development strategy for the next 50 years.
DP World’s trade finance platform provides borrowers with numerous trade finance solutions while offering lenders access to data on cargo movements to support SMEs.
These services are provided by DP World Financial Services, a company registered under the Dubai International Financial Centre and regulated by Dubai Financial Services Authority.
Ahmed Al Naqbi, chief executive of EDB, said the partnership with DP World will create new opportunities for SMEs
“Over the years, EDB has expanded its SME support, enhanced their bankability, and provided them with easy and smooth access to growth finance,” he said.
EDB, founded in 2011 after a merger between Emirates Industrial Bank and Real Estate Bank, has launched various initiatives to support SMEs in the UAE including a new lending feature that allows businesses to apply for loans of up to Dh5 million ($1.36m) and receive approval feedback within five days.
In August, EDB said that start-ups and SMEs can apply for quick loans directly through the bank's digital banking app.
It is also collaborating with Future Factory to offer guidance and consultancy services to SMEs within the lender's portfolio.
EDB aims to provide Dh30 billion in financing over the next five years to support the Emirates' efforts to more than double the size of its industrial sector by 2031. It will fund industries such as health care, infrastructure, food security and technology, and aims to generate 25,000 jobs.
DP World reported a 2.1 per cent increase in gross container volumes during the third quarter of 2022 as global trade flows continue to pick up amid the easing of Covid-related movement restrictions.
