First Islamic bank signs agreement with Emirates Development Bank to be part of its Credit Guarantee Scheme
Emirates Islamic has become the first Islamic bank to sign an agreement with Emirates Development Bank (EDB) to be part of its AED100 million ($27 million) Credit Guarantee Scheme.
EDB’s Credit Guarantee Scheme supports the goals of the National Agenda under UAE Vision 2021, focused on boosting the GDP contribution of SMEs to 70 percent by 2021.
The initiative offers financing of up to AED2 million to startups through EDB’s partner banks, wherein EDB guarantees up to 85 percent of the finance amount. The scheme also offers up to AED5 million financing to existing SMEs, with EDB guaranteeing up to 70 percent of the finance amount.
Emirates Islamic said the new agreement reinforces its commitment towards supporting the SME sector, which represents more than 94 percent of the total number of companies operating in the UAE and employs over 86 percent of the private sector workforce.
Salah Amin, CEO of Emirates Islamic, said: “Emirates Islamic is proud to sign this agreement with EDB, which will greatly boost access to financing and improve the business environment for SMEs. At Emirates Islamic, supporting the SME sector is a top priority, and we will continue to offer them the best in banking solutions, supported by best in class customer service.”
Faisal Al Bastaki, CEO of EDB, added: “The SME sector is a major driver to the growth of the national economy and will boost the UAE’s global competitiveness. As part of our ongoing strategy, we are committed to developing banking solutions that will enable SMEs to effectively contribute to increasing the non-oil GDP and advancing economic diversification.”
Emirates Development Bank announced the launch of the new Credit Guarantee Scheme in February.