Abu Dhabi, 8 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 RAKBANK on Credit Guarantee and Co-lending programs for SMEs in the UAE.
Under the agreement, RAKBANK can offer up to AED 10 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 was signed by Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB, and Peter England, Chief Executive Officer at RAKBANK.
The MoU is part of EDB’s commitment to support the goals of the National Agenda to empower the country’s industrial sector and propel a sustainable national economy by boosting the SME ecosystem in the UAE as well as enhancing the contribution of SMEs to the country’s GDP.
Commenting on the partnership with RAKBANK, Ahmed Mohamed Al Naqbi, said: “At EDB, we aim to support companies and entrepreneurs to have access to wider financing options, which will serve the country’s efforts of building a knowledge-based economy and contribute to sustainable economic development. Our MoU with RAKBANK will help in bridging the funding gap for SMEs in key sectors, which will not only strengthen the SME ecosystem but also pave the way for building a robust economy.”
In his comments, Peter England said: “This agreement is in line with the Bank’s commitment to advance and strengthen the SME’s presence in the country by offering them ‘Simply Better’ financial support and convenient banking solutions that best suit their needs. The development of the National economy is a top priority at RAKBANK and this partnership exemplifies that by supporting priority sectors in the country such as manufacturing, healthcare, infrastructure, food security and advanced technology, all while targeting a wider customer base by offering facilities to UAE Nationals and Expats alike.” 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).