Emirates News Agency – Emirates Development Bank, NBQ partner to facilitate strategic SME financing


ABU DHABI, June 22, 2021 (WAM) – The UAE Development Bank (EDB) has signed a Memorandum of Understanding with the National Bank of Umm Al Qaiwain (NBQ) to facilitate strategic financing options for small and medium-sized enterprises (SMEs) in the United Arab Emirates.

The MoU, which will cover the credit guarantee and co-lending programs, will help close the gap in lending support to SMEs and improve their contribution to the country’s GDP.

NBQ will offer up to AED 10 million in financing to SMEs, and 50% of the amount of the facility will either be guaranteed or co-loaned by EDB. The program also aims to support UAE citizens in their start-up journey by offering financing facilities of up to AED 1 million, 60% of which is guaranteed or co-loaned by EDB.

The MoU was signed by Ahmed Mohamed Al Naqbi, Managing Director of EDB, and Adnan Al Awadhi, Managing Director of NBQ.

In his comments, Al Naqbi said, “SMEs are the backbone of our economy. The UAE government has placed considerable emphasis on developing the ecosystem of SMEs and increasing their contribution to the economy. UAE non-oil GDP Our MoU with Umm Al Qaiwain National Bank help us facilitate financing through credit guarantees and co-lending options to allow greater flexibility operational to SMEs. ”

Al Awadhi, in turn, said: “The NBQ understands the vital role that SMEs play in building the country’s economy, which is why we have developed financial solutions to enable SMEs in the UAE to trade safely and with confidence and access international markets, thus positioning the UAE as the global trade and export hub. ”

The credit guarantee and co-loan program provides a strong platform for EDB and NBQ to increase their financial lending for the SME segment, with a focus on priority sectors namely manufacturing, healthcare, infrastructure, food security and technology.

The MoU is aligned with EDB’s recently unveiled strategy, offering direct and indirect loans for SMEs (Supply Chain, Project and Long-term Finance), an investment arm for startups and SMEs (accelerator , equity financing, business growth funds) as well as advisory services to entrepreneurs, startups and small businesses (coaching, consulting, mentoring, market research).

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