Abu Dhabi, 30 June 2021: Emirates Development Bank [EDB], a key financial enabler of the country’s economic diversification and industrial transformation agenda, has entered into a Memoradum of Understanding [MoU] with First Abu Dhabi Bank [FAB], the UAE’s largest bank and one of the world’s largest and safest financial institutions, on Credit Guarantee and Co-lending programs for SMEs in the UAE.
Under the agreement, FAB will offer up to AED 100 million financing to SMEs, and 50% of the facility amount will be either guaranteed or co-lent by EDB. The program also aims to support UAE citizens in their startup journey by offering financing facilities of up to AED 1 million, wherein 60% is guaranteed or co-lent by EDB.
The MoU is part of EDB’s commitment to support the SME ecosystem in the UAE and contribute to the country’s diversification goals. The partnership will focus on providing strategic financing solutions to SMEs – one of the economic pillars of the UAE.
In his comments on the partnership with FAB, Shaker Zainal, Business Finance Director at EDB, said: “In line with EDB’s role, as the financial enabler of the UAE’s economic diversification, we are happy to partner with First Abu Dhabi Bank. This partnership will help in bridging the funding gap for SMEs and strengthening the SME ecosystem, supporting the UAE’s goals to build a robust knowledge-based economy.”
Shirish Bhide, Group Head of Corporate & Commercial Banking at FAB, added: “SMEs and start-ups are a key pillar of sustainable economic growth and a vital source of future employment and opportunity. FAB is committed to nurturing a thriving SME ecosystem and through this partnership with EDB, FAB will be able to expand its offerings to the SME sector, empowering a spirit of entrepreneurship in the UAE, and supporting the nation’s continuing journey as a diverse and dynamic economy where initiative and innovation are encouraged and rewarded.”
The MoU is aligned with EDB’s recently-unveiled strategy, offering direct and indirect lending for SMEs (Supply Chain, Project and Long-term Finance), an investment arm for startups and SMEs (accelerator, equity finance, business growth fund) as well as business advisory services for entrepreneurs, startups and small companies (coaching, consulting, mentoring, market research).