Two banks team up to launch credit guarantee scheme for UAE-based SMEs

Two banks team up to launch credit guarantee scheme for UAE-based SMEs

UAE – Emirates Development Bank (EDB) has signed a memorandum of understanding (MoU) with Emirates Islamic Bank to collaborate on a joint credit guarantee scheme that will support the financial inclusion of small- and medium-sized enterprises (SMEs) across the UAE, according to a press release.

Under the partnership agreement, Emirates Development Bank will guarantee 50% of the finance facility extended to eligible SMEs by the listed lender, which is the 11th commercial bank to join EDB’s scheme platform that provides SMEs with financing solutions.

The two financial entities will also work together to identify additional opportunities to boost their banking solutions.

CEO of Emirates Development Bank, Ahmed Mohamed Al Naqbi, said: “EDB remains committed to enhancing our nation’s SME ecosystem and supporting the sustainable economic development of the nation, specifically the five key priority sectors.”

Al Naqbi added: “We are pleased to welcome Emirates Islamic to our expanding group of commercial bank partners with the shared goal of facilitating access to financing for SMEs contributing to the UAE’s non-oil [gross domestic product GDP].”

Emirates Development Bank plans to provide AED 30 billion in financing for the development of the UAE economy in five strategic sectors by 2026, including AED 5 million which will be allocated