EDB provides Dh813 million financing to mSMEs through credit guarantee scheme since strategy launch

Emirates Development Bank (EDB) and the Ministry of Economy on Monday recognised and rewarded all the banking and FinTech partners involved in the Bank’s Credit Guarantee Scheme (CGS).

EDB is two years into its ambitious five-year strategy aimed at empowering SMEs and large corporates in five priority sectors: manufacturing, technology, healthcare, renewables, and food security. The Bank has a mandate to deploy AED 30 billion in financing support to 13,500 companies within these sectors by 2026.

Representatives from EDB’s 10 partner banks gathered at a special award ceremony held at the Ministry of Economy’s DIFC offices. During the event, updates were shared about the success of the CGS and recognition awards were presented to the partners for their crucial role in facilitating access to financing for SMEs in the UAE.

Abdullah Al Saleh, Undersecretary of the Ministry of Economy said: “Thanks to the credit guarantees and co-lending schemes offered by the partnership to support SME financing, we have seen considerable increase in SME deployment and distribution in the UAE last year. The partnership has successfully proved its ability to bridge the funding gap for SMEs and strengthen the UAE’s SME ecosystem, supporting the national agenda to build a robust knowledge-based economy.”

Ahmed Al Naqbi, CEO of Emirates Development Bank, said: “Today marks a significant milestone in our journey to support the economic strength of the UAE. We aim to create a nationwide ecosystem for financing innovation and enhancing bankability and financial inclusion of mSMEs. This can only be achieved through partnerships. We recognize the strong working relationships we have with our partner banks and FinTech partners, who have played a crucial role in the success of the CGS. We will continue to work together to support SMEs, the backbone of our economy. Today, we are also proud to celebrate that since the launch of our new strategy in April 2021, we have deployed AED813 million in Credit Guarantee Scheme capital, which is a testament to our commitment to empowering SMEs and driving economic growth.”