Emirates Development Bank and Emirates NBD sign MoU on Credit Guarantee Scheme for SMEs

Abu Dhabi, 23 September 2021: The Emirates Development Bank (EDB), a key financial enabler of the country’s economic diversification and industrial transformation agenda, has signed a Memoradum of Understanding (MoU) with Emirates NBD, a leading banking group in the MENAT (Middle East, North Africa and Turkey) region, to offer a credit guarantee scheme for SMEs in the UAE.

The MoU with Emirates NBD is part of the bank’s shared commitment to boost the SME ecosystem in the UAE and enhance the contribution of SMEs to the country’s GDP. EDB’s partnership with Emirates NBD will focus on providing strategic financing solutions to SMEs.

Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB, signed the MoU with Shayne Nelson, Group CEO of Emirates NBD.

As part of the MoU, EDB will provide financing guarantee coverage of up to 50% of the facility amount being lent to SME customers by Emirates NBD, subject to a maximum of AED 5M for larger SMEs and up to AED 500K for smaller customers. The credit guarantee program provides a robust platform for Emirates NBD and EDB to enhance lending for SMEs with focus on priority sectors such as manufacturing, healthcare, infrastructure, food security and technology.

Speaking of the MoU, Ahmed Mohamed Al Naqbi, Chief Executive Officer, EDB said: “EDB is pleased to sign the MoU with Emirates NBD as part of our endeavor to support the country’s economic diversification plans and bridging the funding gap for SMEs operating in priority sectors in the UAE. In collaboration with Emirates NBD, we look forward to facilitating easy access to financial sources for SMEs, supporting the UAE’s goals to build a robust knowledge-based economy and contributing to sustainable economic development.”

In his comments, Shayne Nelson, Group CEO of Emirates NBD said: “As a leading bank in the country, Emirates NBD has always championed the needs of homegrown SMEs that contribute to the UAE economy. We are pleased to join hands with EDB as part of our long-term, strategic commitment to further the growth of small businesses in the UAE through appropriate and timely financing support, enabling more entities to access credit easily to grow their businesses.”

The MoU is aligned with EDB’s recently-unveiled strategy, offering direct and indirect lending for SMEs (Supply Chain, Project and Long-term Finance), an investment arm for startups and SMEs (accelerator, equity finance, business growth fund) as well as business advisory services for entrepreneurs, startups and small companies (coaching, consulting, mentoring, market research).

Emirates NBD offers a comprehensive suite of banking services for SME customers, comprising transactional banking, cash management, funded and non-funded facilities, working capital financing, as well as FX, insurance and investment services. Customers can also avail of loans against POS receivables or properties where there is no requirement of audited financials. The bank’s state-of-the-art smartBUSINESS online platform provides customers with a wide range of transactional and payment capabilities.