Fri, Nov 15, 2024 | Jumada al-Awwal 13, 1446 | DXB ktweather icon0°C

EDB, CBD sign MoU for credit guarantee, co-lending programme for SMEs in UAE

Dubai - CBD can offer up to Dh 10 million financing to a SME, and 50 per cent of the facility amount will be either guaranteed or co-lent by EDB.

Published: Wed 2 Jun 2021, 3:37 PM

Updated: Wed 2 Jun 2021, 3:38 PM

Top Stories

Ahmed Mohamed Al Naqbi, chief executive officer of EDB, signed the MoU with Dr. Bernd van Linder, chief executive officer at CBD. — Supplied photo

Ahmed Mohamed Al Naqbi, chief executive officer of EDB, signed the MoU with Dr. Bernd van Linder, chief executive officer at CBD. — Supplied photo

The Emirates Development Bank (EDB) has signed a Memoradum of Understanding (MoU) with Commercial Bank of Dubai (CBD) to offer Credit Guarantee and Co-lending programs 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 programme to CBD SME customers. Within the MoU scope, CBD can offer up to Dh 10 million financing to a SME, and 50 per cent of the facility amount will be either guaranteed or co-lent by EDB. For its part, 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 program also aims to support UAE citizens in the startup journey by offering financing facilities of up to Dh1 million, wherein 60 per cent is guaranteed or co-lent by EDB.

Al Naqbi, said: “As part of the EDB’s endeavour to play a pivotal role in the country’s economic diversification plans, and bridging the funding gap for SMEs operating in key sectors, we are pleased to sign the MoU with Commercial Bank of Dubai. Through our combined efforts, we look forward to extending easier access to financial sources, strengthening the SME ecosystem and supporting the UAE’s goals to build a robust knowledge-based economy.”

The credit guarantee and co-lending programme provides a robust platform for EDB and CBD to increase their financial lending for the SME segment, with focus on the priority sectors.

Linder, said: “Our agreement with the Emirates Development Bank is a perfect example of public and private sectors partnering to support SMEs - a vital contributor to the economy of the UAE. CBD has always been keen to promote the overall business environment in the UAE and support SMEs and start-ups by providing them with innovative financial solutions to manage their finances and get the best banking solutions through a seamless and smooth user experience.”

— business@khaleejtimes.com



Next Story