UAE – Mubasher: The UAE-based state-owned Emirates Development Bank (EDB) has signed a memorandum of understanding (MoU) with KLAIM, a local healthcare-focused fintech company to provide low-risk short-term working capital solutions to support healthcare providers.
Under this partnership, EDB will introduce a healthcare receivables financing product to bolster the financial stability of healthcare providers, according to a press release.
Additionally, the bank will streamline healthcare providers' access to working capital across small and large medical facilities with flexible terms and tenors by harnessing KLAIM's fintech capabilities.
The new product will offer dynamic financing based on real-time data, with KLAIM managing the end-to-end process. This will enable healthcare providers to unlock their receivables faster and more efficiently.
Ahmed Mohamed Al Naqbi, CEO of EDB, said: "Through the Healthcare Receivable Financing offering, we are leveraging AI and data science technology applied in KLAIM’s integrated platform to manage the collection of medical claims from insurance companies.”
“Excelling through partnerships is a core value of EDB and our collaboration with KLAIM is a significant step forward in our quest to support the transformation of healthcare and fintech industries in the UAE,” Al Naqbi added.
For his part, Karim Dakki, Co-Founder and CEO of Klaim, stated: “The involvement of health insurance companies makes healthcare payment and finance extremely complex, leading to locked capital.”
“For instance, in the UAE, the yearly claims billing volume is reaching AED 22 billion, with AED 5.5 billion remaining unsettled. Addressing this challenge, Klaim enables healthcare facilities to swiftly access funds within 24 hours, cutting down the 60-90 days claims settlement waiting period,” Dakki noted.
EDB targets healthcare as one of its five key sectors, offering flexible financing solutions to foster innovation and support the deployment of advanced technology, thereby contributing to the UAE's non-oil GDP growth.
Since April 2021, EDB's financing has reached AED 8.7 billion, with AED 326 million specifically allocated for the healthcare sector.
KLAIM, established in 2019, expedites payments for over 323,000 claims in the UAE by purchasing insurance claims from healthcare providers and collecting amounts from medical insurance companies, enhancing cash flows and streamlining collection processes.
In June 2023, EDB declared a set of approvals for financing deals to drive economic diversification at a total value of AED 424 million.
