EDB reaffirms its financial commitment to SMEs and start-ups in the UAE

Emirates Development Bank has reaffirmed its commitment to financially supporting small and medium enterprises and start-ups in the UAE.

The lender will offer SMEs and start-ups across the country a range of financial solutions and services that boost the “bankability” of the sector, he said on Sunday.

“It is essential that businesses, entrepreneurs and SMEs have access to the financing they need to scale, grow and succeed,” said Mr. Al Naqbi, adding that there is a clear correlation between financial inclusion and development.

He was speaking at events marking the Arab Day for Financial Inclusion, celebrated on April 27 every year.

Abu Dhabi-based EDB provided direct and indirect financing, including a credit guarantee program in partnership with nine commercial banks and other digital solutions, to help SMEs access financing and comprehensive banking services .

The digital platform offered by the bank allows SMEs and start-ups to open an account and reserve an IBAN number in a few hours to access banking services.

In the first six months of the new service’s launch, more than 1,000 digital bank accounts were created to support entrepreneurs in the UAE, the bank said.

Earlier this year, EDB announced the 100 million dirham ($27 million) Sanad initiative to accelerate the growth of Emirates-owned and managed SMEs, post-Covid-19 pandemic.

Funding requests through Sanad are processed within five working days. Credit ratings are based primarily on an SME’s 2019 financial statements, pre-Covid, with relaxed standards on assessing their 2020-2021 financial performance.

“As part of the EDB’s mission to enable the UAE’s economic and industrial agenda, and in line with our commitment to creating a business-friendly environment, we offer a patient approach to debt with flexible pricing and solutions. tailor-made financing for SMEs that expand financial inclusion in the UAE,” said Mr. Al Naqbi.

SMEs are the backbone of the UAE economy, accounting for 98% of the total number of businesses operating in the country.

EDB was founded in 2011 after a merger between Emirates Industrial Bank and Real Estate Bank. It aims to provide financing of 30 billion dirhams over the next five years to support the UAE’s efforts to more than double the size of its industrial sector by 2031. It will finance sectors such as healthcare health, infrastructure, food security and technology, and aims to generate 25,000 jobs.

EDB has recently signed agreements with a number of lenders, including RAKBank, Commercial Bank of Dubai and others, to offer credit guarantees and participate in co-loan schemes to SMEs in priority sectors in the UAE.

“Financial inclusion goals are also served by our unique assessment of a company’s eligibility for funding based on its impact on economic development,” Mr. Al Naqbi said.

“EDB has developed a proprietary ‘Development Impact Scorecard’ that measures the likes of [gross domestic product] growth, job creation potential, value in country, economic sector and existing access to finance, in addition to standard risk and profit calculations, allowing the bank to support projects that offer development benefits with flexible financing solutions that may not be available through more traditional banking channels,” Mr. Al Naqbi said.

The lender contributed 1.91 billion dirhams to the UAE’s GDP over the past 12 months as it continued to play a key role in supporting the Gulf country’s industrial strategy.

The EDB also provided direct and indirect financing to 1,350 SMEs in priority sectors and introduced a credit guarantee platform, which mobilized more than 332 million dirhams of capital for SMEs, he said. she said last month.

Updated: May 01, 2022, 12:20 p.m.

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