UAE’s EDB, NBF ink deal to offer credit guarantee & co-lending for SMEs

UAE’s EDB, NBF ink deal to offer credit guarantee & co-lending for SMEs

Emirates Development Bank (EDB), the fully-owned UAE Federal Government financial entity, has signed a Memorandum of Understanding (MoU) with the National Bank of Fujairah (NBF), a full-service corporate bank, to offer a credit guarantee and co-lending package for small and medium-sized enterprises (SME) in priority sectors in the country.

As part of the MoU, NBF will offer up to $2.7 million to SMEs, with half of it being either guaranteed or co-lent by EDB, the two lenders said. The program will also offer up to $270,000 of financing to UAE citizens who want to establish a startup, with 60 percent of the amount guaranteed or co-lent by EDB.

The partnership with NBF is in line with EDB’s commitment to enhance the SME ecosystem in the UAE and increase its contribution to the country’s gross domestic product (GDP). The MoU focuses on offering strategic financing solutions to SMEs, one of the economic pillars of the UAE.

Ahmed Mohamed Al NaqbiCEO – EDB

“As part of EDB’s endeavor to play a pivotal role in the country’s economic diversification plans, and bridging the funding gap for SMEs operating in key sectors across the country, we are pleased to sign the MoU with the NBF. Through our