1.25 million dirhams in financing for small and medium-sized companies owned by citizens in Dubai

The Mohammed bin Rashid Fund to Support Small and Medium Enterprises, the financing arm of the Mohammed bin Rashid Establishment for Small and Medium Enterprises Development, one of the Dubai Economy and Tourism institutions, revealed that it provided funding worth 145.8 million dirhams through the “Beehive” crowdfunding platform, benefiting 1,224 startup companies during the five past years.

He affirmed his commitment to providing and making available innovative financing solutions for small and medium enterprises, in line with the vision and directives of the wise leadership on the need to provide the appropriate environment to support business continuity. 

The partnership between the Fund and the Beehive platform was launched in 2017, and today it is a major financing opportunity for small and medium-sized companies.

The fund said that in 2021, it provided financing for small and medium companies worth 65.29 million dirhams, of which 47.67 dirhams were distributed through the platform to 374 projects. 

Headquartered in Dubai, Beehive is the first financial technology platform authorized to engage in peer-to-peer lending in the Middle East and North Africa region, and is registered with the Dubai Financial Services Authority, in the Dubai International Financial Centre. 

The platform provides an innovative crowdfunding solution, allowing investors to participate in the support of emerging projects in a safe and reliable manner, which in turn promotes growth for projects and investors alike.

This partnership is in line with the emirate’s strategy to support a comprehensive entrepreneurial system capable of developing innovative ideas to become successful global institutions, for start-up companies, business financing services under a capital guarantee scheme, in addition to bill financing facilities services to meet working capital requirements. 

 Since the announcement of this partnership until the end of September 30, 2022, 6,515 financing requests have been approved from 1,211 small and medium companies through the bill financing service, in addition to extending the business financing service for 13 projects, with a total financing of 145.8 million dirhams. The lion's share is 138.1 million dirhams.  

As a revolving credit facility, several invoice financing requests are received from the same company in one month.

Since the beginning of 2022 until today, the Fund and Beehive partnership has provided funding amounting to 41.4 million dirhams, all through the bill financing service. 

Hamda Khalil Ali Hussein, Head of Underwriting and Risk Management at the Fund, said that the Beehive platform uses innovative technology to connect companies seeking fast financing at competitive prices with investors who can help finance the growth of their companies, and the innovative platform provides an opportunity for institutions or individuals wishing to To invest in emerging companies, to reap rewarding investment returns, encourage relatives and friends to financially support their relatives’ projects, and earn profits in return for their participation in financing these projects, with a guarantee from the Mohammed bin Rashid Establishment for Small and Medium Enterprises Development, which leads to stimulating economic growth and helping this important segment companies to develop and consolidate their foundations.  

SMEs in Dubai, wholly owned and managed by Emirati nationals, can obtain financing of up to AED 1,250,000, backed by a 100% capital guarantee from the Mohammed Bin Rashid Fund to Support Small and Medium Enterprises (the Fund), through the guarantee program estimated at 20 million dirhams.

While small and medium-sized companies in Dubai that are owned and managed by Emirati citizens by 50%, can obtain financing up to AED 625,000, provided that they receive a 50% capital guarantee support. 

Beehive's invoice financing service directly links companies seeking working capital with investors willing to lend against corporate invoices.

Businesses can get up to 80% of invoices due within 30 to 150 days in advance and required funds disbursed within 24-48 hours.

So that the minimum investment is 100 dirhams, through which the investor can choose the type of loan or the company he wishes to invest in.

Invoice financing is ideal for companies based in the UAE that have been in operation for at least one year and have a strong credit history. 

The guarantee provided by the "fund" contributes to motivating investors to participate in lending to small and medium-sized companies, as the evaluation of the beneficiary company rises once it is supported by the fund, and it enhances the confidence of investors in it, since the loan is guaranteed in the event of the company defaulting.

The registration process on the platform is done through the website www.beehive.ae, for companies wishing to obtain financial facilities and investors wishing to invest in companies.  

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