Through a joint loan guarantee programme, (EDB) and Emirates Islamic have paired up to support small and medium-sized enterprises (SMEs) in the United Arab Emirates. On April 19, an agreement was signed.
As part of the partnership, EDB will guarantee a 50% financing facility for qualified SMEs provided by Emirates Islamic. It is the eleventh commercial bank to join the platform of the EDB credit guarantee scheme.
The two banks will work together to find further chances to improve their banking offerings.
“EDB remains committed to enhancing our nation’s SME ecosystem and supporting the sustainable economic development of the nation, specifically the five key priority sectors,” said its CEO Ahmed Mohamed Al Naqbi.
The EDB's mandate as the UAE's development bank calls for it to give Dh30 billion in financing—including Dh5 million through loan guarantee programs—toward the growth of the nation's economy in five important areas by 2026.
The chief executive officer of Emirates Islamic, Salah Mohammed Amin, stated that "SMEs are a key driver of Emirates Islamic's growth strategy, and we offer a wide range of business banking products and services tailored to meet the needs of companies in this critical sector."
EDB granted Dh6.1 billion in financing for the upcoming fiscal year, a 673 percent increase from the year before. A total of Dh1.8 billion was sanctioned for SMEs, an increase of 45 percent from the previous quarter and 387 percent over FY 2021.