The Emirates Development Bank (EDB), fully owned by the UAE Federal Government, has signed a MoU with the Commercial Bank of Dubai (CBD), to offer a credit guarantee and co-lending programmes for small and medium-sized enterprises (SMEs) in the UAE.
As part of the MoU, EDB will provide the credit guarantee or co-lending programme to CBD SME customers. CBD can offer up to Dhs10m financing to an SME, and 50 percent of the facility amount will be either guaranteed or co-lent by EDB.
CBD will provide SMEs with a Digital Business account, which can be opened online and instantly. Moreover, CBD will also offer a wide range of loans including Trade and Working Capital finance, loans against POS as well as asset-backed lending solutions.
The programme also aims to support UAE citizens in their startups by offering financing facilities of up to Dhs1m, wherein 60 per cent is guaranteed or co-lent by EDB.
The Credit Guarantee and Co-lending programme by EDB and CBD will focus on priority sectors.
“As part of the EDB’s endeavour to play a pivotal role in the country’s economic diversification plans, and bridging the funding gap for SMEs operating in key sectors, we are pleased…