The Emirates Development Bank (EDB) has signed an MoU with the National Bank of Fujairah (NBF) to offer credit guarantees and co-lending for SMEs in the UAE.
Under the agreement, EDB will provide credit guarantees or a co-lending program to the NBF’s SME customers. NBF will offer up to AED10 million financing to an SME, and 50 percent of the facility amount will be either guaranteed or co-lent by EDB.
The program also aims to support UAE citizens in the startup journey by offering financing facilities of up to AED1 million, wherein 60 percent is guaranteed or co-lent by EDB.
The focus of the credit guarantee and co-lending program is priority industrial sectors namely manufacturing, healthcare, infrastructure, food security and technology.
In a statement, NBF said the agreement is part of its commitment to boost the SME ecosystem in the UAE and increase its contribution to the country’s GDP.