Abu Dhabi launches AED6bn supply-chain financing for SMEs

Abu Dhabi launches AED6bn supply-chain financing for SMEs

The Abu Dhabi Department of Finance (DoF) on Sunday announced an AED 6 billion supply chain financing initiative to support a variety of sectors, as a key initiative in its commitment to support small and medium enterprises (SMEs). The first phase of this initiative is in partnership with the National Health Insurance Company (Daman) and First Abu Dhabi Bank (FAB), aiming to provide liquidity to SMEs in the healthcare sector. Funded by Ghadan 21's SME credit guarantee scheme, the initiative is a demonstration of Abu Dhabi's significant commitment to sustain and support SMEs “” throughout Covid-19 and beyond “” and will initially support SMEs in the healthcare sector, before being extended to include other banks and sectors. The initiative is of significant benefit to SMEs as it facilitates quick payment of their receivables, thus reducing their costs of working capital. In 2019, SMEs in Abu Dhabi accounted for 29% of GDP and 44% of the non-oil economy “” supporting such businesses is a critical element of Abu Dhabi's diversification strategy to move towards a knowledge-based economy. Commenting on the announcement, Jassem Mohammed Bu Ataba AlZaabi, Chairman of the Abu Dhabi Department