The Emirates Development Bank [EDB] has signed a Memorandum of Understanding [MoU] with National Bank of Umm Al Qaiwain [NBQ] to facilitate strategic financing options for SMEs in the UAE.
The MoU will cover Credit Guarantee and Co-lending programs for SMEs in the UAE. This program will help plug the gap in SME lending support and enhance their contribution to the country’s GDP.
NBQ will offer up to AED 10 million financing to SME’s, 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 Adnan Al Awadhi, Chief Executive Officer at NBQ.
The Credit Guarantee and Co-lending program provides a robust platform for EDB and NBQ to increase their financial lending for the SME segment, with a focus on the priority sectors—namely 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).
