Dubai SME’s financial arm and peer-to-peer lending platform Beehive had signed a memorandum of understanding (MoU) to aid financing for small and medium enterprises (SMEs).
The MoU between Beehive and the Mohammad Bin Rashid Fund (MBRF) will make it easier for SME owners in Dubai to obtain loans for development and expansion at competitive rates through the Beehive Group Finance Platform.
Under the deal, MBRF would act as a guarantor for credit of up to Dh500,000 on SME financing for a period up to 36 months.
Abdul Baset Al Janahi, CEO of Dubai SME, said, “The agreement with Beehive addresses the need for modern SME financing options that can compete with conventional channels and excel in terms of efficiency and cost.”
He added, “It’s an opportunity for UAE nationals who own SMEs to get accustomed to modern financial technologies, Fintech, and leverage the concepts of crowd funding and peer-to-peer financing without depending on banks or other financial institutions.”
Craig Moore, Founder and CEO of Beehive, said rapid growth in peer-to-peer finance meant the platform was expected to deliver $300 million in financing worldwide by 2020.
MBRF will monitor the commitment of project owners who receive its support to the standards and controls set by the fund, said Saeed Matar Al Marri, Deputy CEO of Dubai SME.