Ajman Bank has signed an agreement with the Emirates Development Bank (EDB) to provide credit guarantee and co-loans to small and medium-sized enterprises (SMEs) in the United Arab Emirates.
The MoU is part of EDB’s commitment to boost the SME ecosystem and industrial sector in the UAE and thereby increase its contribution to the country’s GDP, the news agency reported. Emirates. WAM.
The partnership focuses on providing strategic financing solutions to SMEs, one of the economic pillars of the United Arab Emirates.
The agreement was signed by Mohamed Amiri, Managing Director of Ajman Bank, and Ahmed Mohamed Al Naqbi, Managing Director of EDB.
As part of the MoU, EDB will provide a credit guarantee and / or a co-loan program to SME clients of Ajman Bank. Ajman Bank will offer up to AED 10 million ($ 2.72 million) in financing to an SME, and 50% of the amount of the facility will either be guaranteed or co-loaned by EDB.
The collaboration also aims to support UAE citizens in the start-up journey by offering financing facilities of up to AED 1 million, of which 60% is guaranteed or co-loaned by EDB.
The credit guarantee and co-loan program is part of a strong platform that EDB has developed with Ajman Bank to increase their financial lending for the SME segment, with a focus on priority industrial sectors – manufacturing, healthcare, infrastructure, food security and technology.
Speaking on the MoU, Amiri said, “Our collaboration with the Emirates Development Bank will bring together our collective resources and comes at a critical time for economic recovery from the pandemic, which ultimately aims to help the business community. Going forward, we will continue to expand the range of solutions to accelerate growth.
Al Naqbi said, “Emirates Development Bank is committed to closing the financing gap of SMEs operating in key sectors and as part of this effort we are delighted to work closely with Ajman Bank. Together we aim to help businesses and entrepreneurs gain access to broader financing options, which will support the country’s efforts to build a knowledge-based economy and contribute to sustainable economic development. ”
The MoU aligns with EDB’s recently unveiled strategy, offering direct and indirect loans to SMEs (supply chain, project and long-term finance), as well as advisory services to entrepreneurs, startups and small businesses (coaching, consulting, mentoring, market research).