EDB and FAB signing MoU Image Credit: Supplied

Dubai: Emirates Development Bank has signed a MoU with First Abu Dhabi Bank on credit guarantee and co-lending programs for SMEs in the UAE.

Under the agreement, FAB will offer up to Dh100 million financing to SMEs, and 50 per cent of the facility amount will be either guaranteed or co-lent by EDB. The program also aims to support UAE citizens in their startup journey by offering financing facilities of up to Dh1 million, wherein 60 per cent is guaranteed or co-lent by EDB.

The partnership will focus on providing strategic financing solutions to SMEs – one of the economic pillars of the UAE.

“This partnership will help in bridging the funding gap for SMEs and strengthening the SME ecosystem, supporting the UAE’s goals to build a robust knowledge-based economy,” said Shaker Zainal, Business Finance Director at EDB.

The MoU is aligned with EDB’s recently-unveiled strategy, offering direct and indirect lending for SMEs (supply chain, project and long-term finance), an investment arm for startups and SMEs (accelerator, equity finance, business growth fund) as well as business advisory services for entrepreneurs, startups and small companies (coaching, consulting, mentoring, market research).