CredibleX Aims to Support 20,000 SMEs in 2024 with new Lending Solutions
Mita Srinivasan
10x Industry

CredibleX Aims to Support 20,000 SMEs in 2024 with new Lending Solutions

CredibleX licensed in ADGM to address the credit gap in UAE by providing easier and faster access through innovative embedded finance solutions.

CredibleX has received licenses from the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM), marking a new era in its mission to revolutionize SME lending. This approval positions it as a key player in the UAE’s financial services landscape, especially for small and medium-sized enterprises (SMEs). The company's embedded finance platform is designed to provide SMEs with instant access to lending solutions, aiming to reach an ambitious target of supporting 20,000 SMEs in 2024.

CredibleX is addressing a critical sector of the economy in line with the UAE’s National Agenda for Entrepreneurship and SMEs, with the number of SMEs projected to double by 2030 to more than 1 million across the UAE alone. Despite representing 90 percent of businesses, only 10 percent of loans currently go to SMEs. Globally, according to The International Finance Corporation, around 65 million, or 40 percent, of formal micro, small, and medium enterprises in emerging markets have an unmet financing need of $5.2 trillion every year, according to World Bank. New forms of embedded financing play an essential role in supporting these businesses.

Co-Founder of CredibleX, Ahmad Malik, highlighted the potential impact of this initiative, stating that over 60 percent of the UAE's non-oil GDP is attributed to the SME sector. Despite this, SMEs often face challenges in accessing credit. CredibleX aims to address this gap by providing easier and faster access to credit through innovative embedded finance solutions.

The company's proprietary technology enables rapid credit risk assessment and pre-approval of lending options for SMEs, a process that traditionally takes weeks or months. This technology offers a solution for business owners to receive application results and funding within a remarkably short timeframe.

Salem Mohammed Al Darei, CEO of ADGM Authority, commended CredibleX for its commitment to enhancing SME financing, noting the company's role in promoting financial inclusion and accelerating economic growth. CredibleX's collaboration with ADGM's SME Financing Digital platform, Numou, and its partnerships in FMCG and financial services sectors are pivotal steps towards achieving this goal.

CredibleX's approach aligns with the UAE’s National Agenda for Entrepreneurship and SMEs. With SMEs representing a vast majority of businesses but receiving a minimal percentage of loans, CredibleX's services could be a game-changer. The company is not only addressing a significant financing gap but also contributing to the UAE's broader economic objectives.