The credit guarantee scheme provides strategic financing solutions to the SME ecosystem in the UAE.
Monday 04, February 2019 BY KUDAKWASHE MUZORIWA
Emirates Development Bank (EDB) has launched a AED 100 million credit guarantee scheme for SMEs together with partner banks and the UAE Banks Federation.
In a statement, the lender stated that the new scheme aims to boost SMEs’ business activities and pave way for economic diversity in line with the UAE’s move towards a post-oil economy.
The scheme will allow EDB to provide credit guarantee to partner banks in the UAE that can offer up to AED 2 million financing to start ups where the lender guarantees their loan up to 85 per cent and up to AED 5 million financing to existing SMEs where EDB also guarantees up to 70 per cent of their loan.
HE Obaid Humaid El Tayer, the Minister of State for Financial Affairs and Chairman of EDB stated that the scheme provides a solid platform for emerging national companies and entrepreneurs to explore new opportunities through innovation such as smart industries, which serve the country’s efforts of building a knowledge-based economy and contribute to sustainable economic development.
UAE banks that are partnering with EDB include Commercial Bank of Dubai, RAKBANK as well as Mashreq Bank, National Bank of Fujairah and Commercial Bank International.
TAGS : Mashreq Bank, Emirates Development Bank , Credit Guarantee Scheme, SMEs, HE Obaid Humaid El Tayer, Commercial Bank of Dubai, RAKBANK, National Bank of Fujairah , Commercial Bank International, UAE Banks Federation