The Emirates Development Bank (EDB) has signed a Memorandum of Understanding (MoU) with the National Bank of Fujairah (NBF) to offer credit guarantees and co-lending for SMEs in the UAE.
EDB’s CEO Ahmed Mohamed Al Naqbi signed the MoU alongside Vince Cook, the CEO of NBF.
The MoU outlines how EDB will now provide a co-lending and credit guarantee programme to the SME customers of NBF, with NBF then offering financing of up to AED10 million to the SME, with 50% of the amount being either guaranteed or co-lent by EDB.
The programme will also facilitate startup journeys by offering financing facilities of up to AED 1 million, wherein 60% is guaranteed or co-lent by EDB.
The programme provides a platform for both parties to increase their financial lending to SMEs, and both EDB and NBF have decided to focus their attention on the priority industrial sectors, including manufacturing, healthcare, infrastructure, food security and technology; with hopes of increasing their economic contribution to the UAE’s GDP.
The MoU is aligned with EDB’s recently-unveiled strategy, offering direct and indirect lending for SMEs (Supply Chain, Project and Long-term Finance), an investment arm for startups and SMEs (accelerator, equity finance, business growth fund) as well as business advisory services for entrepreneurs, startups and small companies (coaching, consulting, mentoring, market research).
Speaking on the signing, Ahmed Mohamed Al Naqbi said: “We’re pleased to sign the MoU with the National Bank of Fujairah. Through our combined efforts, we look forward to facilitating easier access to financial sources, strengthening the SME ecosystem and supporting the UAE’s goals to build a robust knowledge-based economy, and thus contribute to sustainable economic development.”
Adding to this, Vince Cook said: “SMEs are the backbone of the local economy in the UAE. The partnership with Emirates Development Bank reflects our long-term commitment to the UAE’s vibrant SME ecosystem and we’re delighted to be working together to extend the financing available to our customers.”