The Emirates Development Bank (EDB) has signed a Memorandum of Understanding (MoU) with Emirates NBD to offer a credit guarantee scheme for SMEs in the UAE. The MoU with Emirates NBD is part of the bank’s shared commitment to boost the SME ecosystem in the UAE and enhance the contribution of SMEs to the country’s GDP. EDB’s partnership with Emirates NBD will focus on providing strategic financing solutions to SMEs.
Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB, signed the MoU with Shayne Nelson, Group CEO of Emirates NBD.
As part of the MoU, EDB will provide financing guarantee coverage of up to 50% of the facility amount being lent to SME customers by Emirates NBD, subject to a maximum of AED 5M for larger SMEs and up to AED 500K for smaller customers. The credit guarantee program 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.
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).
Emirates NBD offers 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. Customers can also avail of loans against POS receivables or properties where there is no requirement of audited financials. The bank’s state-of-the-art smartBUSINESS online platform provides customers with a wide range of transactional and payment capabilities.