New Financing Program for 100% UAE-Owned Companies

The Ministry of Economy and the Emirates Development Bank (EDB) have announced the launch of a new financing program starting yesterday.

The Ministry of Economy explained that the new program is for 100% Emirati-owned companies, which are managed by Emiratis who are members of the National Program for Small and Medium Enterprises, which includes 1,700 Emirati SMEs.

The Emirates Development Bank (EDB) said it would give UAE program members a preferential interest rate, which is 1% below the average interest rate of the product for the rest of the other companies, as well as a reduction in the commission of the loan guarantee program for the program members.The funding will start from AED 300,000 to AED 30 million.

Financing program

In detail, the Ministry of Economy and the Emirates Development Bank (EDB) announced the launch of a new financing program starting yesterday, which includes new services and preferential prices for UAE companies that are members of the Ministry's National SME Program to facilitate their access to loans and remove obstacles One of the main obstacles they face is bank financing.

«Interest» and commission

In a press conference in Abu Dhabi yesterday, Emirates Development Bank (EDB) Chief Executive Faisal Aqeel Al Bastaki revealed that the bank will give UAE program members a preferential interest rate, 1% lower than the average interest rate of the product for other companies, starting from 5% instead of 6%. And with a ceiling above 9%, while in commercial banks up to 14%.

He added that the loan guarantee program for the program members will be reduced to 2% instead of 2.5%, according to the bank's terms and conditions, provided that the facility commission will be calculated at a minimum of 0.25% for the first year. 0.25% and 1% for other companies.

The value of financing

Al Bastaki revealed that the bank's financing starts from AED 300,000 to AED 2 million for startups, from AED 1 million to AED 5 million for small businesses, and from AED 5 million to AED 30 million for medium-sized companies, pointing out that the bank also gives loan guarantees to partner banks, at rates Up to 70% up to a maximum of AED 5 million for SMEs and a guarantee of 85% up to a maximum of AED 2 million for startups.

Emirates IDB aims to take a comprehensive approach to support companies owned and managed by UAE nationals by providing banking solutions to startups, SMEs and loan guarantees to meet their short-term and / or short-term financial needs. Long-term.

Al-Bastaki added that the bank is currently working on building its full financing portfolio to be fully available within the next 12 months, and 10% of the entire portfolio will be allocated to small projects only, according to the Small Enterprises Law.

UAE Companies

For his part, Director of the National Program for Small and Medium Enterprises and Enterprises, affiliated to the Ministry of Economy, Dr. Adib Al-Afifi, said at the press conference that the new program is dedicated to 100% Emirati-owned companies managed by Emiratis, pointing out that the number of companies in the program is 1700 Company and small and medium enterprise.

He explained that the Emirates Development Bank will provide specialized staff working as liaison officers, to deal with member companies in the program, to facilitate access to finance and various preferential benefits.

Afifi revealed that more than 80% of the members of the national program for small and medium enterprises, have passed the stage of establishment and construction of their projects, and entered the stage of expansion and trade, which makes their need for financial services is absolutely necessary.

He stressed the need to register UAE companies in the National Program for Small Enterprises, if they are not registered, to obtain facilities from the Emirates Development Bank, and then to enter the platform electronically, to directly benefit from the facilities, and to complete the requirements for access to finance.

He explained that, as the program is in contact with the UAE SMEs, bank financing is one of the most important obstacles facing these companies, pointing out that the facilities granted by the Emirates Development Bank help companies overcome this obstacle.

Areas of financing

Faisal Al-Bastaki, Chief Executive Officer of Emirates Development Bank, explained that the financing of the UAE companies that are members of the small projects program covers four areas: finance finance, sales finance, financing fixed assets and business development. No collateral is required, depending on product type and financing process.

Market knowledge

Dr. Adeeb Al-Afifi, Director of the National Program for Small and Medium Enterprises (SMEs), said that there are challenges facing small companies, including knowing the pioneer in the internal and external markets and supporting his ability to deal with the government and private sectors, exporters and suppliers.

He said the program provides 50 training programs for UAE companies, benefiting 3,000 people annually.

Faisal Aqeel Al Bastaki:

Bank Financing

Starts from 300 thousand

AED to 30

Million, for companies

Medium size ».

Adeeb Afifi:

«More than 80%

Of the members

Projects) they entered

In the expansion phase

And trade.