Dubai: Emirates Development Bank (EDB) and Emirates Islamic, have teamed up to support small and medium-sized businesses (SMEs) in the UAE through a joint credit guarantee scheme. An MoU was signed on Wednesday, April 19.
As part of the collaboration, EDB will provide a 50 per cent finance facility guarantee to eligible SMEs extended by Emirates Islamic. It is the 11th commercial bank to join EDB’s credit guarantee scheme platform.
The two banks will also collaborate to identify further opportunities to enhance their banking solutions.
“EDB remains committed to enhancing our nation’s SME ecosystem and supporting the sustainable economic development of the nation, specifically the five key priority sectors,” said its CEO Ahmed Mohamed Al Naqbi.
EDB’s mandate as the UAE’s development bank includes providing Dh30 billion in financing towards developing the country’s economy in five strategic sectors by 2026, with Dh5 million allocated through credit guarantee schemes.
Salah Mohammed Amin, CEO at Emirates Islamic, said, “SMEs are a key driver of Emirates Islamic’s growth strategy, and we offer a wide range of business banking products and services tailored to meet the needs of companies in this critical sector.”
In the fiscal year 2022, EDB approved Dh6.1 billion in financing, a 673 per cent increase over the previous year. Dh1.8 billion was approved for SMEs, representing a 387 per cent increase over FY 2021 and a 45 per cent increase over the last quarter.