UAE - Mubasher: The Emirates Development Bank (EDB), fully owned by the UAE Federal Government, has signed a Memorandum of Understanding (MoU) with the National Bank of Umm Al Qaiwain (NBQ) to grant small and medium-sized enterprises (SMEs) up to AED 10 million financings.
Under the agreement, 50% of the facility amount will be guaranteed or co-lent by EDB, which seeks to provide SMEs in the UAE with several strategic financing options and promote their contribution to the GDP, according to a recent press release.
The MoU will cover credit guarantee and co-lending programmes to close the gap in SME lending support.
In addition, the programme will back the startups in the UAE through financing facilities of up to AED 1 million, of which 60% is guaranteed or co-lent by EDB.
The CEO of EDB, Ahmed Mohamed Al Naqbi, said: "Our MoU with National Bank of Umm Al Qaiwain will help us facilitate financing through credit guarantee and co-lending options to allow greater operational flexibility to SMEs."
Meanwhile, the CEO at NBQ, Adnan Al Awadhi, commented: "The NBQ understands the vital role the SMEs play in building the nation’s economy that is why we have developed financial solutions to allow the SMEs in the UAE to trade safely and confidently and gain access to international markets, thereby positioning the UAE as the global hub of trade and export."
It is noteworthy to mention that in June, EDB entered into two MoUs with the Commercial Bank of Dubai (CBD) and the National Bank of Ras Al Khaimah (RAKBANK) to support SMEs through credit guarantee and co-lending programmes.
