EDB, FAB partner on co-lending programme for SMEs in the UAE
Officials of Emirates Development Bank and First Abu Dhabi Bank sign the Memorandum of Understanding.
Under the agreement, FAB will offer up to Dhs100 million financing to SMEs, and 50 per cent of the facility amount will be either guaranteed or co-lent by EDB. The programme also aims to support UAE citizens in their startup journey by offering financing facilities of up to Dhs1 million, wherein 60 per cent 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.
In his comments on the partnership with FAB, Shaker Zainal, Business Finance Director at EDB, said: “In line with EDB’s role, as the financial enabler of the UAE’s economic diversification, we are happy to partner with First Abu Dhabi Bank. This partnership will help in bridging the funding gap for SMEs and strengthening the SME ecosystem, supporting the UAE’s goals to build a robust knowledge-based economy.” 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.”
The MoU is aligned with EDB’s recently-unveiled strategy, offering 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).
About Emirates Development Bank Emirates Development Bank (EDB), headquartered in Abu Dhabi, was established under Federal Law by Decree No. 07 of 2011 issued by His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE. It became operational in June 2015. The Bank unveiled its new strategy in 2021 reinforcing its identity as one of the key drivers of the UAE’s economic recovery. EDB offers financial and non-financial support to SMEs, startups and large corporates operating in strategic priority sectors in the UAE, as a step to boost their contribution to the country’s non-oil GDP.
The Bank also provides home finance support to the UAE Nationals. EDB operates two branches in Abu Dhabi and Dubai.
FAB is the UAE’s largest bank and one of the world’s largest and safest financial institutions. FAB’s vision is to create value for its employees, customers, shareholders and communities to grow stronger through differentiation, agility and innovation.
Headquartered in Abu Dhabi, the bank’s international network spans five continents, providing global relationships, expertise and financial strength to support local, regional and international businesses seeking to do business at home and abroad. FAB is a trusted adviser and regional partner to major institutions, emerging companies and individuals seeking to do business in the UAE, the Mena region and beyond. As an engine of growth for the region, it helps customers to thrive and grow stronger by managing risk, providing access to capital and facilitating trade flows across developed and emerging markets.
FAB continuously anticipates evolving requirements, develops innovative solutions and moves in tandem with customers to offer an extensive range of tailor-made products via its market-leading corporate, wholesale, consumer and private banking franchises.
Aligned to the Abu Dhabi Economic Vision, inspired by global standards and guided by the expectations of stakeholders, FAB takes a leading role in fostering development and driving change towards a more sustainable future.
FAB sees beyond traditional banking and embraces a challenger mindset. Its ambition is to contribute to social and human development, which creates a dynamic, inclusive and tolerant society.
With total assets of Dhs941 Billion as of March-end 2021, FAB is rated Aa3/AA-/AA- by Moody’s, S&P and Fitch, respectively, the strongest combined ratings of any bank in the Mena region.
The Bank has been ranked by Global Finance as the Safest Bank in the UAE and the Middle East, and the 32nd Safest Bank globally.
