The two major Middle Eastern Banking Giants Emirates Development Bank as well as the Rak Bank have jointly signed an initial contract to offer credit guarantee and co-lending programs for small- and medium-sized enterprises (SMEs) in the UAE.
It permits SMEs to receive up to 10 million dirhams ($2.7 million) funding, in which half of the facility will be either definite or co-lent by EDB, the both the banking majors stated that in a statement.
Native citizens can also receive up to 1 million dirhams in funding – 60 percent is guaranteed or co-lent by EDB.
“Our MoU with RAKBANK will help in bridging the funding gap for SMEs in key sectors, which will not only strengthen the SME ecosystem but also pave the way for building a robust economy,” EDB chief Ahmed Mohamed Al-Naqbi, stated it out
It emanates as the UAE boosts investment in its industrial sector and raise SMEs contribution to the nations GDP. The tie-up follows EDB’s earlier announcement that it is offering direct and indirect lending for SMEs. It also set up an investment arm for startups, as well as business advisory services for entrepreneurs.