RAKBank reveals 10% attrition rate for SMEs

RAKBank reveals 10% attrition rate for SMEs

Ras Al Khaimah’s RAKBank has revealed a 10 percent annual churn rate of startups funded in the UAE – an amount it says is well below the global average. The lender has almost 50,000 small and medium-sized enterprises on its books and last year handed out AED2.5 billion ($680 million) worth of loans to more than […]

RAKBank supports 50,000 SMEs

Attrition rate of 10%

SMEs are 60% of GDP

Ras Al Khaimah’s RAKBank has revealed a 10 percent annual churn rate of startups funded in the UAE – an amount it says is well below the global average.

The lender has almost 50,000 small and medium-sized enterprises on its books and last year handed out AED2.5 billion ($680 million) worth of loans to more than 3,000 companies

Dhiraj Kunwar, managing director of business banking at RAKBank, said 18,000 of the bank’s customers had been with them for more than 10 years, while the overall exposure to the SME sector is close to AED10 billion.

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“The natural attrition is something around 10 percent,” he said. “And it can be for a variety of reasons – change in plan, driving to new industries, setting up a different job or