Home SME Emirates Development Bank, Commercial Bank of Dubai sign MoU for SME lending programme CBD can offer up to Dhs10m financing to an SME, and 50 per cent of the facility amount will be either guaranteed or co-lent by EDB by Varun Godinho June 3, 2021 The Emirates Development Bank (EDB), fully owned by the UAE Federal Government, has signed a MoU with the Commercial Bank of Dubai (CBD), to offer a credit guarantee and co-lending programmes for small and medium-sized enterprises (SMEs) in the UAE. As part of the MoU, EDB will provide the credit guarantee or co-lending programme to CBD SME customers. CBD can offer up to Dhs10m financing to an SME, and 50 percent of the facility amount will be either guaranteed or co-lent by EDB. CBD will provide SMEs with a Digital Business account, which can be opened online and instantly. Moreover, CBD will also offer a wide range of loans including Trade and Working Capital finance, loans against POS as well as asset-backed lending solutions. The programme also aims to support UAE citizens in their startups by offering financing facilities of up to Dhs1m, wherein 60 per cent is guaranteed or co-lent by EDB. The Credit Guarantee and Co-lending programme by EDB and CBD will focus on priority sectors. “As part of the EDB’s endeavour to play a pivotal role in the country’s economic diversification plans, and bridging the funding gap for SMEs operating in key sectors, we are pleased to sign the MoU with Commercial Bank of Dubai. Through our combined efforts, we look forward to extending easier access to financial sources, strengthening the SME ecosystem and supporting the UAE’s goals to build a robust knowledge-based economy,” said Ahmed Mohamed Al Naqbi, CEO at EDB. Dr. Bernd van Linder, CEO at CBD meanwhile added, “CBD has always been keen to promote the overall business environment in the UAE and support SMEs and start-ups by providing them with innovative financial solutions to manage their finances and get the best banking solutions through a seamless and smooth user experience.” The MoU is also aligned with the recently-unveiled EDB strategy of offering direct and indirect lending for SMEs. In April this year, Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, approved the EDB strategy which includes a financing portfolio of Dhs30bn to contribute to financing more than 13,500 SMEs and creating 25,000 jobs over the next five years. Launched to support “Operation 300bn”, the EDB Strategy aims to leverage the bank’s role to provide the largest support network for the industrial sector. The strategy will support businesses and startups to drive the national economy. Read: Sheikh Mohammed launches Dhs30bn strategic programme to stimulate vital sectors Tags Commercial Bank of Dubai Dubai Economy Emirates Development Bank finance News SME UAE 0 Comments You might also like Flying Taxis: How Archer aims to revolutionise travel in the UAE UAE to announce petrol, diesel prices for January; will rates drop in 2024? How REITs are unlocking the potential of UAE real estate GCC region M&A blazes trail as global deals decline