Two UAE-based banks have come together to offer a credit guarantee scheme for small and medium-sized enterprises or SMEs in the UAE, said local reports on Thursday, September 23.
The Emirates Development Bank or EDB has signed a Memorandum of Understanding or MoU in this regard, said the local reports.
As part of the MoU, EDB is expected to provide financing guarantee coverage of up to 50 percent of the facility amount being lent to SME customers by Emirates NBD.
This will be a maximum of AED5 million (around $1.36 million) for larger SMEs and up to AED500,000 (around $136,000) for smaller customers.
The credit guarantee program reportedly provides a robust platform for Emirates NBD and EDB to enhance lending for SMEs with focus on priority sectors such as manufacturing, healthcare, infrastructure, food security, and technology.
Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB, signed the MoU with Shayne Nelson, Group CEO of Emirates NBD.
Speaking on the occasion, Ahmed Mohamed Al Naqbi, Chief Executive Officer, EDB, said, “In collaboration with Emirates NBD, 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.”
Emirates NBD is already said to offer a comprehensive suite of banking services for SME customers, comprising transactional banking, cash management, funded and non-funded facilities, working capital financing, as well as FX, insurance and investment services.