UAE - Mubasher: The Emirates Development Bank (EDB), fully owned by the UAE Federal Government, has inked a Memorandum of Understanding (MoU) with Commercial Bank of Dubai (CBD) to offer credit guarantee and co-lending programmes for small and medium-sized enterprises (SMEs) in the UAE.
The agreement is part of EDB’s objective to support the National Agenda under the UAE Vision 2021, which aims to strengthen the SME ecosystem in the UAE and improve their contribution to the country's GDP, according to a press release on Wednesday.
Under the partnership, CBD will provide up to AED 10 million financings to SMEs, with 50% of the facility amount to be either guaranteed or co-lent by EDB, in addition to an innovative and convenient digital business account.
In addition, CBD will grant a wide range of loans including trade and working capital finance, loans against POS, and asset-backed lending solutions.
Financing facilities of up to AED 1 million will also be provided to support UAE citizens in the startup journey, with 60% guaranteed or co-lent by EDB.
The CEO of EDB, Ahmed Mohamed 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."
Meanwhile, the CEO at CBD, Bernd van Linder, commented: "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."
