Emirates Development Bank and ADCB to partner on credit guarantee scheme for UAE SMEs

Emirates Development Bank and ADCB to partner on credit guarantee scheme for UAE SMEs

Abu Dhabi, United Arab Emirates: Emirates Development Bank (EDB), a key financial engine for the economic development and industrial advancement of the nation, and Abu Dhabi Commercial Bank PJSC (ADCB), the third largest bank in the UAE by assets, have announced the signing of a Memorandum of Understanding (MoU) to boost financial inclusion of small-to-medium sized enterprises (SMEs) through a joint credit guarantee scheme.

The partnership will enable SMEs in the UAE to have improved access to strategic financing options. Under the credit guarantee scheme, EDB will guarantee up to 50% of the finance facility extended to SMEs by ADCB. The scheme is in line with EDB’s mandate to provide AED 30 billion in financing towards the development of the UAE economy in 5 strategic sectors, of which AED 5 billion are to be allocated through credit guarantee schemes.

Shaker Zainal - Chief mSMEs Officer at Emirates Development Bank, said: “EDB is dedicated to growing the UAE economy by supporting the sustainable development of our nation’s SME ecosystem. We are pleased to welcome ADCB to our expanding group of commercial bank partners with whom EDB pursues the shared goal of improving access to financing for SME businesses contributing the UAE’s non-oil GDP.