For aiding the Emirati SMEs for fortifying much-desired funding within the wake of COVID-19 Pandemic turmoil, Aafaq Islamic Finance as well as Dubai SME has recently announced up a programme.
The firm also provides a broader range for the Sharia-Yielding banking merchandize as well as services for the corporate as well as retail-based clients.
As per a statement issued through Aafaq Islamic Finance, “Via the Osool Programme module, the Emirati SMEs as well as Entrepreneurs will be provided a direct access for a competitive financing solution that offers striking profit margin, flexible payment strategies, least documentation as well as swifter processing, as well as thereby “accomplishing stability in an unstable market scenario.”
The CEO of Dubai SME, Abdul Baset Al Janahi, the agency of Dubai Economy that nurtures a competitive SME sector stated that: “This will provide the SMEs another way to get access to capital and finance. To come up with a new product during such a time of pandemic is a great and brave initiative which resembles the way we think in Dubai.”
He also continued that: “This is how we operate. Yes, there is a pandemic but we will get through it and we will still innovate and come up with products and ideas like this.”
CEO of Aafaq Islamic Finance, Rashid Mahboob Al Qubaisi, further announced that: “The SME sector is the driving force of any economy. We support the vision of our leadership and the government in empowering entrepreneurs and creating a conducive business environment. Our new program Osool, designed for Emirati SMEs is all about facilitating access to easy and flexible financing solutions for SMEs and entrepreneurs, thus helping them to take their business to new heights.”
The only necessities for industries to take an advantage from Osool is for them to be active for a minimum of three months and to be Emirati, although a spokesperson for Aafaq Islamic Finance stated that they would reflect expanding it to non-Emirati SMEs at a future stage.
Finance through Osool is specified for SMEs to moreover purchase the newer assets or utilize for their working capital and flinches at AED50,000 going up to AED3 million in currency financing.
Two SMEs have already acquired the funding from Osool, as part of a preliminary run, and mandate is anticipated to be noteworthy following Monday’s media launch, the spokesperson stated it.
As according to Aafaq’s statement, the SMEs in Dubai currently represent 99.2 percent of the entire businesses operating in the emirate and about 51 percent of the overall workforce donate 46 percent to the emirate’s GDP.
Al Qubaisi stated that: “The partnership between Aafaq Islamic Finance and Dubai SME will continue to lead to effective strategies and plans focused on innovation and creating a business environment where novel ideas are nurtured and transformed into successful projects capable of contributing towards the growth of our country and its economy.”
Abdulla Bin Touq Al Marri, UAE Minister of Economy, stated that the achievement was a matte
r of “great pride”, and “indicates the success of national efforts made over the past decade to develop the country’s entrepreneurship sector.”
According to the index formed by the Global Entrepreneurship Monitor, the UAE has elevated up one place from the preceding year and outclassed many of the core global economies like the United States, Canada, the United Kingdom, Australia, China, Japan and South Korea.
The UAE also accomplished the advanced rankings in many of the sub-indicators counting being ranked second in how the nation responded to the coronavirus pandemic and its impact on the entrepreneurial sector. It also graded high on its entrepreneurial infrastructure as well as R&D.