Emirates Development Bank and Commercial Bank International Empower SMEs through Credit Guarantee Partnership

Dubai, United Arab Emirates, October 3 2024: In a move to significantly boost financial inclusion and empower SMEs, Emirates Development Bank ("EDB" or "the Bank"), the key financial engine of economic development and industrial advancement in the UAE, has partnered with Commercial Bank International (CBI), a leading UAE bank, for a joint credit guarantee program.

This strategic partnership marks CBI as the 13th commercial bank to join EDB's Credit Guarantee Scheme, further consolidating the Bank’s success in providing crucial access to finance for SMEs. The scheme has already provided significant financing exceeding AED 1.5 billion; thereby enhancing financial inclusion and promoting entrepreneurship and economic opportunity.

H.E. Ahmed Al Naqbi, Chief Executive Officer of Emirates Development Bank, highlighted that the strategic collaboration between EDB and CBI is a powerful example of how public and private sector institutions can work together to create a more supportive environment for SMEs, ultimately driving economic growth and diversification in the UAE.

“At EDB, we believe that SMEs are the backbone of a diversified and resilient economy. Our Credit Guarantee Scheme is a testament to our commitment to providing these vital businesses with the financing they need to thrive. This partnership with CBI is a significant step forward in our mission to drive financial inclusion and empower SMEs across the UAE. By leveraging the strengths of both banks, we can create a more supportive and accessible financing landscape, enabling SMEs to unlock their full potential and contribute even more significantly to the nation's economic growth", said His Excellency.

Under this partnership, EDB will guarantee up to 50% of the loan amount provided by CBI to eligible SMEs, significantly reducing the risk for both parties. The scheme will enable CBI to confidently extend financing to a wider range of SMEs, including those in the priority sectors identified by EDB that may have previously struggled to access traditional financing options.

Commenting on the partnership, Ali Sultan Rakkad Al Amri, Chief Executive Officer of CBI, said: “Our partnership with EDB reflects our dedication to further empowering SMEs and fostering innovation in line with the UAE’s long-term economic vision. By offering a carefully tailored suite of financial products and services, we can equip SMEs with the resources they need to expand their portfolios, innovate and meaningfully contribute to the ever-growing UAE economy. Through this collaboration, we look forward to working with EDB to make financing more accessible and to supporting the SME sector across the UAE to thrive.”

The partnership underscores both EDB and CBI’s commitment to fostering a thriving and a more inclusive financial ecosystem for SMEs in the UAE. The joining of CBI amplifies the reach of the Credit Guarantee Scheme, which contributes significantly to achieving EDB’s goal to provide AED30 billion in financing for 13,500 companies by 2026.