EDB, RAKBANK sign deal on SME financing options, credit guarantees

EDB, RAKBANK sign deal on SME financing options, credit guarantees

ABU DHABI - Emirates Development Bank (EDB), a key financial enabler of the country's economic diversification and industrial transformation agenda, has entered into a Memorandum of Understanding (MoU) with RAKBANK on Credit Guarantee and Co-lending programmes for SMEs in the UAE. Under the agreement, RAKBANK can offer up to AED10 million financing to small and medium-sized enterprises (SMEs), and 50 percent of the facility amount will be either guaranteed or co-lent by EDB. The programme also aims to support UAE citizens in their startup journey by offering financing facilities of up to AED1 million, wherein 60 percent is guaranteed or co-lent by EDB. The MoU was signed by Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB, and Peter England, Chief Executive Officer at RAKBANK. The MoU is part of EDB's commitment to supporting the goals of the National Agenda to empower the country's industrial sector and propel a sustainable national economy by boosting the SME ecosystem in the UAE as well as enhancing the contribution of SMEs to the country's GDP. Ahmed Mohamed Al Naqbi, commented, "At EDB, we aim to support companies and entrepreneurs to have access to wider financing options, which will serve the country's efforts of