FAB to partner with EDB to offer up to AED 100 million in financing to SMEs
Emirates Development Bank [EDB] and First Abu Dhabi Bank [FAB] have signed an Memorandum of Understanding [MoU] to enable FAB to offer up to AED 100 million financing to SMEs, with 50 percent of the amount to be either guaranteed or co-lent by EDB. The program also aims to support UAE citizens in their startup journey by offering financing facilities of up to AED 1 million, where 60 percent is guaranteed or co-lent by EDB.
The MoU is part of EDB’s commitment to support the SME ecosystem in the UAE and contribute to the country’s diversification goals. The partnership will focus on providing strategic financing solutions to SMEs, one of the economic pillars of the UAE. It follows several announcements the bank has made recently including a partnership with Beehive to fund SMEs.
Shirish Bhide, Group Head of Corporate & Commercial Banking at FAB, added: “SMEs and start-ups are a key pillar of sustainable economic growth and a vital source of future employment and opportunity. FAB is committed to nurturing a thriving SME ecosystem and through this partnership with EDB, FAB will be able to expand its offerings to the SME sector, empowering a spirit of entrepreneurship in the UAE, and supporting the nation’s continuing journey as a diverse and dynamic economy where initiative and innovation are encouraged and rewarded.”
EDB’s recently-unveiled strategy highlights 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).