Doha Bank earmarks Dh5.5b for UAE firms, SMEs

Doha Bank, one of the largest banks in Qatar, has set aside Dh5.5 billion in financing for corporate and small and medium enterprises (SMEs) in the UAE, the company’s chief executive announced yesterday.

Dr. R Seetharaman, Doha Bank Group CEO, said the bank has earmarked $12 billion (Dh44 billion) for lending in the GCC region. In the next eight months alone, about Dh1.8 billion to Dh2.2 billion will be allocated in Dubai and another Dh3 billion to Dh3.5 billion in Abu Dhabi.

“We foresee that a minimum of Dh5 billion will be funded by us in terms of lending in the project space, corporate space and small and medium-size and retail space,” Seetharaman told reporters at a press conference in Dubai.

Seetharaman said they have decided to make a lending push in the UAE, as well as the rest of the GCC, as the region has clearly shown signs it has bounced back from the financial downturn.

He said increased government spending will provide opportunities for businesses in the UAE, particularly Dubai, which already saw at least 26,000 commercial licences renewed and a little over 4,000 new business applications filed in the first quarter of 2013.

Governments across the region have set aside huge budgets to implement various infrastructure development projects, and spending is expected to hit $142 billion (Dh522.2 billion) between 2013 and 2020.

“The non-hydrocarbon [sector] is moving in the right direction in every part of the Gulf state. The airport is expanding. The seaport is expanding and the railroad network is coming up. We have seen the project space taking momentum and the urban development has created new vigour and opportunities for the business and trade sectors,” Seetharaman pointed out.

He noted that financial markets in Dubai and Abu Dhabi have grown significantly over the last year, while international investors are confident about investing their money in the country.

“The property market is recovering. As bankers, we have seen cash flows are improving. Rentals are going up and the capacity to repay is visible. Dubai is getting back on track in terms of overall business performance. The new projects announced recently will provide enough opportunities for businessmen, whether they are a contracting company, transport company, trade or manufacturing,” he added.

The earmarked lending fund will be made available not only to entrepreneurs in the real estate , construction or transport business, but across different sectors. “We have a very balanced approach to lending. We have an internal policy to diversify our lending to multiple sectors including SMEs,” Seetharaman pointed out.