Abu Dhabi: The Emirates Development Bank (EDB), fully owned by the UAE Federal Government has signed a Memoradum of Understanding (MoU) with Commercial Bank of Dubai (CBD) to offer credit guarantee and co-lending programmes for SMEs in the UAE.
The MoU is part of EDB’s commitment to support the goals of the National Agenda under the UAE Vision 2021, focused on boosting the SME ecosystem in the UAE as well as enhancing the contribution of SMEs to the country’s GDP.
The partnership will focus on providing strategic financing solutions to SMEs – one of the economic pillars of the UAE.
Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB, signed the MoU with Dr. Bernd van Linder, Chief Executive Officer at CBD.
As part of the MoU, EDB will provide the Credit Guarantee or Co-lending program to CBD SME customers. Within the MoU scope, CBD can offer up to Dh10 million financing to a SME, and 50 per cent of the facility amount will be either guaranteed or co-lent by EDB.
CBD will provide SMEs with an innovative and convenient Digital Business account, which can be opened digitally and in real time. Moreover, CBD will also offer a wide range of loans including Trade and Working Capital finance, loans against POS as well as asset backed lending solutions.
The programme also aims to support UAE citizens in the startup journey by offering financing facilities of up to Dh 1 million, wherein 60 per cent is guaranteed or co-lent by EDB.