Emirates Development Bank (EDB) has partnered with Trade Capital Partners (TCP) to offer supply chain finance and working capital solutions to small- to medium-sized businesses (SMBs) in the United Arab Emirates (UAE).
This collaboration, facilitated by Abu Dhabi’s global tech ecosystem Hub71, aims to support startups and provide them with commercial opportunities through a network of corporate and government partners, the companies said in a Thursday (Aug. 17) press release.
EDB has set a goal to provide AED30 billion (about $8 billion) in financing support to 13,500 companies in priority sectors by 2026, according to the release. The partnership with TCP will help achieve this goal by creating a working group to explore innovative ways of delivering supply chain financing to SMBs in the UAE.
Supply chain finance is crucial for business operations as it reduces the risk of disruptions and allows buyers and suppliers to optimize their working capital, the release said. By leveraging TCP’s platform and expertise, EDB aims to bring more financing solutions to a wider range of businesses, particularly SMBs that contribute significantly to the UAE’s non-oil gross domestic product (GDP).
Shaker Zainal, chief business officer of EDB, emphasized the institution’s commitment to supporting SMBs and promoting innovation, per the release. He highlighted the value of partnerships and the significance of this collaboration in further supporting SMB growth.
Bill Crawley, founder and chief operating officer of TCP, stressed the importance of SMBs and startups as the driving force of the economy. He stated in the release that this partnership will provide significant support to the ecosystem and offer trade finance alternatives to growing businesses.
TCP aims to revolutionize the trade finance landscape by leveraging state-of-the-art technology and processes, empowering entrepreneurs, SMBs and startups to thrive in the domestic and global marketplace, Crawley said in the release.
Hub71, which is one of the top FinTech accelerators in the Middle East and North Africa (MENA) region, isn’t exclusive to FinTechs but counts among its alumni FinTechs like Dopay and Pyypl. Graduates of its accelerator programs are contributing to the booming FinTech ecosystem not just in the UAE but across the MENA region.