Emirates Development Bank, ADCB team up on credit guarantee scheme for UAE SMEs

Emirates Development Bank and the Abu Dhabi Commercial Bank PJSC (ADCB) announced the signing of a Memorandum of Understanding (MoU) to boost financial inclusion of small-to-medium-sized enterprises (SMEs) through a joint credit guarantee scheme.

The partnership will enable SMEs in the UAE to have better access to strategic financing options, according to a press note. Under the credit guarantee scheme, EDB will guarantee up to 50% of the finance facility extended to SMEs by ADCB.

The scheme is in line with EDB’s mandate to provide AED 30 billion to finance development of the country's economy in five strategic sectors, namely manufacturing, healthcare, food security, advanced technology, and infrastructure. Out of this, AED 5 billion are to be allocated through credit guarantee schemes to these sectors.

Shaker Zainal, Chief mSMEs Officer at Emirates Development Bank, said, “EDB is dedicated to growing the UAE economy by supporting the sustainable development of our nation’s SME ecosystem. We are pleased to welcome ADCB to our expanding group of commercial bank partners. Through this MoU, EDB will help fill critical lending gaps and provide solutions tailored to financing the growth of the SME sector.”

In the first nine months of 2022, EDB approved AED 1.3 billion in loans to SMEs, comprising AED 806 million in direct financing and AED 485 million in indirect financing through EDB’s credit guarantee scheme with partner commercial banks.