Emirates Development Bank (EDB), a key financial engine for the economic development and industrial advancement of the nation, and Emirates Islamic, one of the leading Islamic financial institutions in the UAE, have announced the signing of a Memorandum of Understanding (MoU) to collaborate on a joint credit guarantee scheme supporting the financial inclusion of small-to-medium sized enterprises (SMEs) in the UAE.
Emirates Islamic is the 11th commercial bank to join EDB’s credit guarantee scheme platform offering favourable financing solutions to SMEs. Under the partnership agreement, EDB will guarantee 50% of the finance facility extended to eligible SMEs by Emirates Islamic. Both banks will also collaborate to identify further opportunities to enhance their banking solutions.
Ahmed Mohamed Al Naqbi, Chief Executive Officer at Emirates Development Bank, said: “EDB remains committed to enhancing our nation’s SME ecosystem and supporting the sustainable economic development of the nation, specifically the five key priority sectors. We are pleased to welcome Emirates Islamic to our expanding group of commercial bank partners with the shared goal of facilitating access to financing for SMEs contributing to the UAE’s non-oil GDP.
“As a home-grown Islamic financial institution, supporting the UAE’s SME sector is a top priority for Emirates Islamic and we are proud to be partnering with EDB,” added Salah Mohammed Amin, Chief Executive Officer at Emirates Islamic. “This reflects our shared commitment to supporting the growth of the segment in the UAE.”