The Ministry of Economy and the Emirates Development Bank ("EDB" or "the Bank") today celebrated and honoured all the banking and FinTech partners involved in the Bank's Credit Guarantee Scheme (CGS), a crucial financial engine for the UAE's economic growth and industrial advancement.
A special award ceremony was conducted in the DIFC offices of the Ministry of Economy, and attendees included representatives from the ten partner banks of the EDB. Updates on the CGS's progress were discussed at the event, and partners were honoured for their essential contribution to facilitating SMEs' access to funding in the UAE.
Aiming to empower SMEs and large corporations in five critical sectors—manufacturing, technology, healthcare, renewable energy, and food security—EDB is two years into an ambitious five-year strategy. By 2026, the Bank is required to provide finance support of AED 30 billion to 13,500 businesses operating in these areas.
To aid mSMEs in the UAE, EDB created the CGS. By offering a partial guarantee to lending banks, the programme seeks to assist these enterprises in overcoming obstacles to obtaining funding from conventional banks. In the event that the SME is unable to fulfil its financial obligations, this guarantee takes effect.
In addition to offering financial assistance, the CGS also enables mSMEs to build a solid credit history with banks. This makes it possible for their companies to receive stable financing in the future, assuring long-term growth and success.
HE Abdullah Al Saleh, Undersecretary of the Ministry of Economy said: “Thanks to the credit guarantees and co-lending schemes offered by the partnership to support SME financing, we have seen considerable increase in SME deployment and distribution in the UAE last year. The partnership has successfully proved its ability to bridge the funding gap for SMEs and strengthen the UAE’s SME ecosystem, supporting the national agenda to build a robust knowledge-based economy.”