EDB inks deal to offer credit guarantee scheme for SMEs

EDB inks deal to offer credit guarantee scheme for SMEs

The Emirates Development Bank (EDB), a key financial enabler of country's economic diversification and industrial transformation agenda, signed a Memoradum of Understanding (MoU) with Emirates NBD, a leading banking group in the Menat (Middle East, North Africa and Turkey) region, to offer a credit guarantee scheme for SMEs in the UAE. The MoU with Emirates NBD is part of the bank's shared commitment to boost the SME ecosystem in the UAE and enhance the contribution of SMEs to the country's GDP. EDB's partnership with Emirates NBD will focus on providing strategic financing solutions to SMEs. Ahmed Mohamed Al Naqbi, CEO of EDB, signed the MoU with Shayne Nelson, Group CEO of Emirates NBD. As part of the MoU, EDB will provide financing guarantee coverage of up to 50% of the facility amount being lent to SME customers by Emirates NBD, subject to a maximum of AED 5M for larger SMEs and up to AED 500K for smaller customers. The credit guarantee program provides a robust platform for Emirates NBD and EDB to enhance lending for SMEs with focus on priority sectors such as manufacturing, healthcare, infrastructure, food security and technology. Speaking of the MoU, Ahmed Mohamed Al Naqbi, Chief Executive