Emirates Development Bank (EDB) hosted a workshop in collaboration with the National Program for Small-to-Medium-Sized-Enterprises (SME), the executive arm of the SME council that is operating under the umbrella of the Ministry of Economy, and was attended by members of the National Program, as well as representatives of the UAE’s leading banks.
EDB presented its complete range of solutions for SME financing, in addition to key features of the recently launched Credit Guarantee Scheme, designed for UAE National entrepreneurs. This collaboration underpins EDB’s vision and strategy for developing the UAE’s SME sector, and increasing SME contribution to economic growth for the country.
Commenting at the launch of the workshop, Mr. Faisal Al Bastaki, Chief Executive Officer, Emirates Development Bank, said “EDB plays a unique role in developing the SME sector and empowering Emirati entrepreneurs with opportunities for growth. Our collaboration with the National Program for SMEs, is a key step forward to achieving the UAE’s Vision 2021 and ignite entrepreneurial efforts to play a key role in a creating a diversified economy.”
Dr. Adeeb Al-Afifi, Director of the National Program for SMEs and Projects, added, “this workshop will present great chances for the UAE SMEs in the matters of financing and projects loans.” He pointed that banking sector of the UAE, which is striving to drive forward comprehensive development in the UAE, offer services to Emiratis that allows them to complete their projects, as well as supporting the SME sector and entrepreneurship.
Al-Afifi also added, “UAE continues its efforts to consolidate its economic position that has made it an ideal global investment destination, and through initiatives such as this workshop, UAE strengthens its partnerships and linkages with entrepreneurs and innovators within its SME (small and medium enterprises) sector, which plays an important role in the national economy of the UAE.
Al-Afifi also disclosed that the number of registered SMEs has reached 98% of the total registered companies in UAE, and 89% of which are into trade and service sector, accounting to 49% contribution to UAE’s non-oil GDP, a fine reflection of the country’s attraction of investment.
The workshops are part of EDB’s strategic plans to support SMEs, in collaboration with federal and local governments, and the private sector, to make unique financial solutions available and accessible to Emirati entrepreneurs.
EDB launched its Credit Guarantee Scheme in February 2019, in collaboration with partner banks, to provide strategic financing solutions to SMEs that are owned and managed by UAE Nationals. Credit guarantees are provided to partner banks which offer up to 85% guarantee coverage for start-up entities (amounting to AED 2 million) and up to 70% guarantee coverage for SMEs (amounting to AED 5 million).