As part of its commitment to back the small to medium-sized business (SMB) environment in the United Arab Emirates (UAE) and contribute to the nation’s diversification aims, Emirates Development Bank (EDB) has effected a memorandum of understanding with First Abu Dhabi Bank (FAB) on credit guarantee and co-lending initiatives, according to an announcement on Wednesday (June 30).
“This partnership will help in bridging the funding gap for … [SMBs] and strengthening the … [SMB] ecosystem, supporting the UAE’s goals to build a robust knowledge-based economy,” Shaker Zainal, business finance director at EDB, said in the announcement.
FAB will provide a maximum of AED 100 million (approximately $27 million) in financing to SMBs, with half of the facility amount co-lent or guaranteed by EDB. In addition, the initiative seeks to help UAE citizens with their startups by the way of financing facilities of as much as AED 1 million (approximately $272,000), wherein 60 percent is co-lent or guaranteed by EDB.
“FAB is committed to nurturing a thriving … [SMB] ecosystem and through this partnership with EDB, FAB will be able to expand its offerings to the … [SMB] sector, empowering a spirit of entrepreneurship in the UAE, and supporting the nation’s continuing journey as a diverse and dynamic economy where initiative and innovation are encouraged and rewarded,” Shirish Bhide, group head of Corporate and Commercial Banking at FAB, said in the announcement.
The news comes as the Commercial Bank of Dubai (CBD) has created a collaboration with the Dubai Multi Commodities Centre (DMCC) designed to advance entrepreneurship and help those who own companies.
Business owners that have DMCC trade licenses will now be able to use CBD’s banking offerings to strengthen their business capabilities.
That encompasses “exclusive digital business accounts, which can be opened instantly with zero balance options, and a wide range of exclusive services tailored for all business needs,” the CBD said in an announcement.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More