The Emirates Development Bank (EDB) has approved the launch of an AED 50 million ($13.6 million) “direct funding for start-up companies programme” and an AED 100 million ($27.2 million) programme that provides credit guarantees for funding small and medium-sized companies, the bank announced on Monday.
The programmes were approved during a recent meeting of the bank’s board of directors in Dubai, which was headed by Minister of State for Financial Affairs and chairman of the EDB board of directors Obaid bin Humaid Al Tayer.
The direct funding for start-up companies will provide funding of AED 2 million ($544,499) for start-up companies owned by UAE nationals at a percentage of no less than 51 percent, according to the programme’s terms and conditions.
The second programme will guarantee funding of up to AED 2 million, with the ban guaranteeing 85 percent of the loan’s value. For existing companies, the bank will guarantee 70 percent of loans up to AED 5 million ($1.36 million).
According to EDB, the programme is designed to help small and medium-sized businesses succeed and help strengthen the UAE’s regional and international competitiveness.
The various projects funded by the bank are valued at AED 345 million ($93 million).
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