ADCB, Emirates Development Bank partner on credit guarantee scheme

The partnership will enable SMEs in the country to have better access to strategic financing options. EDB will guarantee up to 50 percent of the finance facility extended to SMEs by ADCB, under the credit guarantee scheme.

The scheme aligns with EDB’s mandate to provide AED30 billion in financing towards the development of UAE’s economy in 5 strategic sectors, of which AED5 million are to be allocated through credit guarantee schemes.

“EDB is dedicated to growing the UAE economy by supporting the sustainable development of our nation’s SME ecosystem. We are pleased to welcome ADCB to our expanding group of commercial bank partners with whom EDB pursues the shared goal of improving access to financing for SME businesses contributing to the UAE’s non-oil GDP. Through this MoU, EDB will help fill critical lending gaps and provide solutions tailored to financing the growth of the SME sector,” said Shaker Zainal – Chief mSMEs Officer at Emirates Development Bank.

“ADCB is committed to providing SMEs with comprehensive banking solutions for their operational and strategic ambitions as they are the backbone of the UAE economy – they represent more than 90 percent of the total companies operating in the country and generate more than 50 percent of the UAE’s non-oil GDP. This partnership with EDB will enable us to unlock more funding for the nation’s SME community and expand our support for the government’s ‘We the UAE 2031’ strategy and the ‘National Agenda for Entrepreneurship’,” said Saoud Mohammed Al Jassem, Government Clients Division, ADCB.

In the first three quarters of 2022, EDB approved AED1.29 billion in loans to SMEs of which AED806 million was direct financing and AED 485 million was indirect financing through credit guarantee schemes with partner commercial banks.