Emirates Development Bank [EDB] has signed a Memorandum of Understanding [MoU] with the Abu Dhabi Fund for Development [ADFD].
As part of this MoU, EDB will provide innovative financing and banking solutions, credit guarantees and joint lending for the beneficiaries of ADFD’s programmes and thus support the economic diversification in Abu Dhabi and the UAE and promote overall sustainable growth and exports.
The agreement was signed by Ahmed Mohammed Al Naqbi, CEO of Emirates Development Bank, and His Excellency Mohammed Saif Al Suwaidi, Director General of Abu Dhabi Fund for Development.
The MoU is aligned with the common objectives of both EDB and ADFD, in particular the provision of innovative financing and banking solutions that are aimed at achieving sustainable development for large companies as well as the small and medium enterprises [SMEs] to support the overall national economic goals.
The areas of cooperation include exchange of data between the two parties, developing a plan to find financing opportunities for the beneficiaries of ADFD through joint and large projects financing, cooperation through the ADFD credit guarantee and joint lending programs and increasing EDB’s receivables’ financing applications.
EDB and ADFD will also cooperate in areas of common interests such as supporting local entrepreneurship, economic development and community cooperation, and collaborate in facilitating financing for entities in the UAE’s industrial sector, which fall under the list of beneficiaries of ADFD, implementing joint programs in the fields of entrepreneurship development, awareness and industry knowledge-sharing through cross-promotion of products and services across their marketing and social media channels.
As part of EDB’s strategy, which was unveiled earlier this year, EDB allocated AED 30 billion as direct and indirect financial bundle to finance SMEs, startups, and corporates in priority industrial sectors. Within the ambit of this strategy, EDB seeks to contribute AED 10 billion to the country’s GDP, support more than 13,500 companies, and create 25,000 jobs over the next five years.
