Media ININ Economy We Trust
Dubai, 01-07-2019
Emirates Islamic Bank has signed an agreement with Emirates Bank for Development (EAD) to become the first Islamic bank to join the SME Finance Guarantee Program in a move that reflects the commitment of the two parties to accelerate the growth of this vital sector in the UAE.
The AED 100 million program aims to support the objectives of the UAE National Vision 2021 by enhancing SME contribution to GDP to 70% by 2021, in line with ongoing national efforts to diversify the economy and establish the post-oil economy.
The initiative provides financing of up to AED 2 million to start-ups through partner banks of Emirates Development Bank, which guarantees up to 85 per cent of the financing amount. The program also provides financing of up to AED 5 million for existing SMEs, with up to 70 per cent financing.
The new partnership is based on Emirates Islamic Bank’s commitment to support the SME sector, which accounts for 94% of the total number of companies operating in the UAE and comprises 86% of the total workforce in the private sector, according to Ministry of Economy data. Emirates Islamic Bank, which offers a wide range of business banking products and services designed to meet the needs of companies of all sizes and fields of business.
“Emirates Islamic Bank is proud to have signed this agreement with Emirates Bank for Development, which will play a major role in enabling SMEs to access the financing they need, as well as to improve the business environment of this vital sector,” said Salah Amin, Chief Executive Officer, Emirates Islamic Bank. Supporting these companies is a top priority for us at Emirates Islamic and we will be sure to continue to provide the best banking solutions backed by the highest levels of customer service for this growing sector.
Faisal Al Bastaki, Chief Executive Officer, Emirates Development Bank, said: “The design of our latest program is based on the needs of small and medium enterprises. In line with Emirates Bank’s commitment to create an integrated portfolio of innovative financing products and solutions that will enhance the financial capabilities of SMEs, The national economy and will certainly play a pivotal role in enhancing the competitiveness of the UAE on the global stage. As part of our continuous strategy, we are committed to developing banking solutions that will enable these companies To contribute efficiently to the strengthening of non-oil GDP and to enrich the country’s economic diversification.
