Abu Dhabi – Mubasher: Abu Dhabi Commercial Bank (ADCB) and Emirates Development Bank (EDB) inked a memorandum of understanding (MoU) to boost the financial inclusion of small-to-medium-sized enterprises (SMEs) through a joint credit guarantee scheme.

The partnership aims to provide SMEs in the UAE with access to strategic financing options, according to a press release.

Under the credit guarantee scheme, EDB will guarantee up to 50% of the finance facility extended to SMEs by ADCB.

This aligns with EDB’s mandate to endorse AED 30 billion in developing the UAE economy across five strategic sectors, of which AED 5 billion are to be allocated through credit guarantee schemes.

Shaker Zainal, Chief mSMEs Officer of EDB, said: “We are pleased to welcome ADCB to our expanding group of commercial bank partners with whom EDB pursues the shared goal of improving access to financing for SME businesses contributing the UAE’s non-oil GDP.”

Zainal added: “Through this MoU, EDB will help fill critical lending gaps and provide solutions tailored to financing the growth of the SME sector.”

Saoud Mohammed Al Jassem, Government Clients Division at ADCB, noted: “This partnership with EDB will enable us to unlock more funding for the nation’s SME community and expand our support for the government’s ‘We the UAE 2031’ strategy and the ‘National Agenda for Entrepreneurship’.”

In the first nine months (9M) of 2022, EDB greenlighted loans worth AED 1.30 billion to SMEs, comprising direct and indirect financing valued at AED 806 million and AED 485 million, respectively.  

Furthermore, EDB collaborated with peer-to-peer (P2P) lending platform Beehive to create a new digital lending feature that allows SMEs to apply for loans of up to AED 5 million and receive approval or feedback within five days.

Meanwhile, ADCB, also listed on the Egyptian Exchange (EGX), logged net profits attributable to the shareholders worth AED 4.65 billion in 9M-22, up 22% from AED 3.79 billion in 9M-21.