UAE’s Emirates Development Bank, NBQ partner to facilitate SME financing

The Emirates Development Bank (EDB) has signed a Memorandum of Understanding (MoU) with the National Bank of Umm Al Qaiwain (NBQ) to facilitate strategic financing options for small and medium-sized enterprises (SMEs) in the UAE.

The programmes provide a robust platform for both banks to increase their lending to the SME segment, with a focus on the priority sectors such as manufacturing, healthcare, infrastructure, food security and technology.

The MoU will cover credit guarantee and co-lending programmes. NBQ will offer up to Dhs10m financing to SMEs, and 50 per cent of the facility amount will be either guaranteed or co-lent by EDB. The programme also aims to support UAE citizens in their startup journey by offering financing facilities of up to Dhs1m, wherein 60 per cent is guaranteed or co-lent by EDB.

EDB and the National Bank of Umm Al Qaiwain (NBQ) have signed an MoU to ease financing options for SMEs in the UAE. The MoU – signed by Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB, and Adnan Al Awadhi, Chief Executive Officer at NBQ ?? pic.twitter.com/oLKiLo41yL

— Emirates Development Bank (@EDB_UAE) June 22, 2021

Ahmed Mohamed Al Naqbi, chief executive officer of EDB, said: “SMEs are the backbone of our economy. The UAE Government has placed considerable emphasis on developing the SME ecosystem and boosting their contribution to UAE’s non-oil GDP. Our MoU with National Bank of Umm Al Qaiwain will help us facilitate financing through credit guarantee and co-lending options to allow greater operational flexibility to SMEs.”

“The NBQ understands the vital role the SMEs play in building the nation’s economy that is why we have developed financial solutions to allow the SMEs in the UAE to trade safely and confidently and gain access to international markets, thereby positioning the UAE as the global hub of trade and export,” noted Adnan Al Awadhi, CEO, NBQ.

Earlier this month, EDB also signed a MoU with the Commercial Bank of Dubai to offer credit guarantee and co-lending programmes for SMEs across the country.

Read: Emirates Development Bank, Commercial Bank of Dubai sign MoU for SME lending programme

It also signed an agreement with peer-to-peer (P2P) lending platform Beehive to expand funding options for SMEs.

Read more: UAE’s Emirates Development Bank allocates Dhs30m to finance SMEs through Beehive platform