Emirates Islamic Bank (EIB) is preparing to offer financing to start-up companies in the small to medium-sized business sector.
The bank, a subsidiary of Emirates NBD, is hiring business analysts and relationship managers to focus solely on lending to start-up entrepreneurs and small to medium-sized enterprise (SME).
It expects to roll out a number of products in the next quarter, including asset-based loans and working capital finance. Faisal Aqil, the head of retail banking at EIB, said the bank was the first in the country to offer direct loans to entrepreneurs of all nationalities for start-ups.
"We have the expertise, we are building a team and we will look to lend to the sector in the next three months," Mr Aqil said. "We are looking for entrepreneurs with a tight business plan and a strong idea."
Lending to SMEs is becoming an increasingly important area of growth for banks as the economic recovery takes hold.
The Khalifa Fund is in negotiations with a number of banks, including National Bank of Abu Dhabi, HSBC and Abu Dhabi Islamic Bank. The fund will underwrite part of the loans that banks extend to Emirati entrepreneurs.
Emirates NBD and EIB are already involved in financing Emirati entrepreneurs through the Al Tomooh Scheme,run by the Mohammed bin Rashid Al Maktoum Foundation. As part of the scheme, Emirati nationals receive interest-free financing.
"This scheme is part of our corporate social responsibility activities and our commitment to the community," Mr Aqil said. "But we now want to look at start-ups from a directly commercial perspective."
EIB currently offers finance to SMEs that have a two-year trading and financial track record. SME lending makes up 15 per cent of the bank's total loan portfolio and it now wants to expand aggressively. "SME lending is one of the more profitable areas of our loan book," Mr Aqil said. The bank will only look to finance entrepreneurs who are willing to match the size of the loan extended. Entrepreneurs traditionally struggle to receive finance because their business has no cash flow history and often no assets to borrow against. "This issue is particularly acute in the GCC," said Raj Madha, an analyst at Rasmala Investment Bank. "The region lacks the necessary information and a reliable, stable operating environment for SMEs."
When the economic crisis hit in 2008, EIB tightened its policy on lending to SMEs in segments most affected by the global downturn, mainly those associated with property. Mr Aqil said the bank had now "reopened" its policy on SMEs and the move into the start-up market reflected that.
The criteria is still stricter for property but financing opportunities for SMEs working in tourism, hospitality and retail have been unaffected by the crisis, he said.
"A few years back there was no SME market, lending focused on large corporations and few banks saw the opportunity," Mr Aqil said.
"This has changed in the last three or four years and most of the leading banks are starting to look at the start-up segment."
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Nayanthara: Beyond The Fairy Tale
Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni
Director: Amith Krishnan
Rating: 3.5/5
LA LIGA FIXTURES
Friday (UAE kick-off times)
Real Sociedad v Leganes (midnight)
Saturday
Alaves v Real Valladolid (4pm)
Valencia v Granada (7pm)
Eibar v Real Madrid (9.30pm)
Barcelona v Celta Vigo (midnight)
Sunday
Real Mallorca v Villarreal (3pm)
Athletic Bilbao v Levante (5pm)
Atletico Madrid v Espanyol (7pm)
Getafe v Osasuna (9.30pm)
Real Betis v Sevilla (midnight)
Tips to avoid getting scammed
1) Beware of cheques presented late on Thursday
2) Visit an RTA centre to change registration only after receiving payment
3) Be aware of people asking to test drive the car alone
4) Try not to close the sale at night
5) Don't be rushed into a sale
6) Call 901 if you see any suspicious behaviour
Biog
Age: 50
Known as the UAE’s strongest man
Favourite dish: “Everything and sea food”
Hobbies: Drawing, basketball and poetry
Favourite car: Any classic car
Favourite superhero: The Hulk original
How tumultuous protests grew
- A fuel tax protest by French drivers appealed to wider anti-government sentiment
- Unlike previous French demonstrations there was no trade union or organised movement involved
- Demonstrators responded to online petitions and flooded squares to block traffic
- At its height there were almost 300,000 on the streets in support
- Named after the high visibility jackets that drivers must keep in cars
- Clashes soon turned violent as thousands fought with police at cordons
- An estimated two dozen people lost eyes and many others were admitted to hospital
THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
Company%20Profile
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Auron Mein Kahan Dum Tha
Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar
Director: Neeraj Pandey
Rating: 2.5/5
Disclaimer
Director: Alfonso Cuaron
Stars: Cate Blanchett, Kevin Kline, Lesley Manville
Rating: 4/5
Countdown to Zero exhibition will show how disease can be beaten
Countdown to Zero: Defeating Disease, an international multimedia exhibition created by the American Museum of National History in collaboration with The Carter Center, will open in Abu Dhabi a month before Reaching the Last Mile.
Opening on October 15 and running until November 15, the free exhibition opens at The Galleria mall on Al Maryah Island, and has already been seen at the Jimmy Carter Presidential Library and Museum in Atlanta, the American Museum of Natural History in New York, and the London School of Hygiene and Tropical Medicine.
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
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