Abu Dhabi – Mubasher: Emirates Development Bank (EDB) has inked a Memorandum of Understanding (MoU) with National Bank of Ras Al Khaimah (RAKBANK) for small and medium-sized enterprises (SMEs) in the UAE to benefit from credit guarantee and co-lending programmes.
Under the agreement, RAKBANK will grant SMEs up to AED 10 million financings, 50% of which will be either guaranteed or co-lent by EDB, according to a press release on Tuesday.
Meanwhile, the programme aims to support startups through financing facilities of up to AED 1 million, 60% of which is guaranteed or co-lent by EDB.
The MoU is in line with EDB’s objective to empower the UAE's industrial sector and boost a sustainable national economy by backing SMEs and enhancing their contribution to the country’s GDP.
The CEO of EDB, Ahmed Mohamed Al Naqbi, said: "At EDB, we aim to support companies and entrepreneurs to have access to wider financing options, which will serve the country’s efforts of building a knowledge-based economy and contribute to sustainable economic development."
Meanwhile, the CEO at RAKBANK, Peter England, commented: "The development of the National economy is a top priority at RAKBANK and this partnership exemplifies that by supporting priority sectors in the country such as manufacturing, healthcare, infrastructure, food security and advanced technology, all while targeting a wider customer base by offering facilities to UAE Nationals and Expats alike."
It is noteworthy to mention that last week, EDB entered into an MoU with the Commercial Bank of Dubai (CBD) to offer credit guarantee and co-lending programmes for SMEs in the UAE.