Abu Dhabi – Mubasher: Emirates Development Bank (EDB) and Abu Dhabi Islamic Bank (ADIB) signed a strategic partnership to back SMEs in the UAE through a joint finance guarantee scheme.
The partnership aims to improve financial inclusion for SMEs, securing much-needed access to financing. EDB will guarantee up to 50% of the financing extended to SMEs by ADIB, according to a press release.
It will also focus on supporting projects within EDB’s five priority sectors: manufacturing, food security, advanced technology, healthcare, and renewables.
Ahmed Mohamed Al Naqbi, CEO of EDB, said: "Through our finance guarantee scheme, in partnership with twelve of the largest commercial banks in the UAE, we are enabling businesses to overcome financial barriers and achieve their full potential.”
“This new partnership amplifies the schemes’ reach and effectiveness while providing a model for how banks can drive sustainable and inclusive economic growth through strategic partnerships and a commitment to delivering impact,” Al Naqbi mentioned.
Mohamed Abdelbary, Acting Group CEO of ADIB, commented: “With this initiative, we are expanding our support to SMEs through customised financing options and comprehensive banking services that address their unique needs, enabling them to scale, innovate and contribute to the UAE’s long term economic vision.”
EDB has provided AED1.58 billion in financing through the Guarantee Scheme until this date, providing 4,000 job opportunities.
In line with the UAE’s national economic and sustainable development objectives, ADIB anchored EDB’s goal to provide AED 30 billion in financing support by 2026.
Earlier this month, EDB greenlighted financing agreements at a total value of AED 424 million to drive economic diversification.
The net profits of ADIB hiked by 30% year-on-year (YoY) to AED 3.02 billion in the first half (H1) of 2024 from AED 2.32 billion in H1-23.
