UAE: Emirates Development Bank to spend AED 1 billion on SME financing

Emirates Development Bank (EDB) has announced that it plans to lend AED 1 billion to small and medium enterprises owned by Emiratis throughout 2018 and 2019. EDB is a state-owned bank that specialises in lending to local developmental, residential and industrial businesses. EDB plans to loan up to 80% of fixed assets and purchases while offering attractive interest rates with flexible tenors.

Obaid Humaid Al Tayer, the Minister of State for Finance and Chairman of the Board of Directors of EDB, has said the bank’s objective to be the leading lender for Emirati entrepreneurs is a key factor behind the initiative.

He went on to say, “Small and medium-sized enterprises are two of the most important cornerstones of the UAE’s national economy, as they play a vital role in its progress and prosperity. This highlights the role of Emirates Development Bank, as it offers banking solutions and financial services that are tailored to the growth and development of small and medium-sized enterprises.”

According to RFi Group data, 1 in 5 SMEs in the UAE are owned by Emiratis, indicating a large proportion of the market is eligible to benefit from the EDB’s new initiative.

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