Ajman Bank has signed a memorandum of understanding (MoU) with the Emirates Development Bank (EDB) to offer credit guarantee and co-lending for small and medium-sized enterprises (SMEs) in the UAE.
The MoU falls within the scope of EDB’s commitment to boost the SME ecosystem and the industrial sector in the UAE and thus increase its contribution to the country’s GDP. The partnership focuses on offering strategic financing solutions to SMEs, one of the economic pillars of the UAE.
The agreement was signed by Mohamed Amiri, Chief Executive Officer of Ajman Bank, and Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB.
As part of the MoU, EDB will provide credit guarantee and/or co-lending programme to the Ajman Bank’s SME customers. Ajman Bank will offer up to AED10 million financing to an SME, and 50 percent of the facility amount will be either guaranteed or co-lent by EDB. The collaboration also aims to support UAE citizens in the startup journey by offering financing facilities of up to AED1 million, wherein 60 percent is guaranteed or co-lent by EDB.
The credit guarantee and co-lending programme is part of a robust platform that EDB has worked out with Ajman Bank to increase their financial lending for the SME segment, with focus on the priority industrial sectors – manufacturing, healthcare, infrastructure, food security and technology.
Speaking about the MoU, Amiri said, “Our collaboration with the Emirates Development Bank will bring together our collective resources and comes at a decisive moment for economic recovery after the pandemic which is ultimately aimed at helping the business community. Moving forward, we will continue to expand on the range of solutions to accelerate growth.”
For his side, Al Naqbi, said, “Emirates Development Bank is committed to bridging the funding gap for SMEs operating in key sectors and as part of this endeavour, we are pleased to work closely with Ajman Bank. Together, we aim to support companies and entrepreneurs to have access to wider financing options, which will serve the country’s efforts of building a knowledge-based economy and contribute to sustainable economic development.”
The MoU is aligned with EDB’s recently-unveiled strategy, offering direct and indirect lending for SMEs (Supply Chain, Project and Long-term Finance), as well as business advisory services for entrepreneurs, startups and small companies (coaching, consulting, mentoring, market research).
Source: WAM – Emirates News Agency