(MENAFN- Mid-East Info) Emirates Development bank (“EDB” or“the Bank”), the key financial engine of UAE economic development and industrial advancement, and Ajman Bank, one of the leading Islamic financial institutions in the UAE, have renewed their strategic agreement offering innovative credit guarantees and co-lending solutions to small and medium-sized enterprises (SMEs) across the UAE. The collaboration focuses on enhancing the financial inclusion of SMEs and providing them with crucial access to finance.
Co-signed by His Excellency Ahmed Mohamed Al Naqbi, CEO of EDB, and Mustafa Al Khalfawi, CEO of Ajman Bank, this extended partnership underscores the commitment of both banks to bolstering the SME private sector and driving the nation's economic growth and diversification.
H.E. Al Naqbi said:“At EDB, empowering SMEs, the backbone of the UAE economy, is paramount. We believe strategic partnerships are key to creating a thriving environment for these vital businesses. Our renewed collaboration with Ajman Bank exemplifies our partnership-driven approach, leveraging the strengths of both public and private sectors to strengthen the SME landscape. By working together, we can effectively address SME financing challenges and unlock their full potential. We are committed to building a comprehensive growth ecosystem through innovative financing solutions and joint schemes tailored to the needs of businesses of all sizes, and this partnership is a significant step in that direction.
Al Khalfawi stressed:“We are delighted to extend our successful partnership with EDB, which is fundamental to our commitment to supporting SME growth and success in the UAE. We believe providing SMEs with the necessary tools and resources, including access to vital funding, is crucial for stimulating a vibrant SME ecosystem. This collaboration empowers entrepreneurs and business owners with the financial backing they need to innovate, expand, and contribute to the nation's economic diversification. We are excited to partner with EDB to enhance SME access to finance and contribute to Ajman's overall economic prosperity.”
The partnership aims to enhance access to finance for SMEs. Through a joint Credit Guarantee Scheme, EDB will guarantee up to 50% of loans extended by Ajman Bank to SMEs, focusing on projects within EDB's five priority sectors: Manufacturing, Food Security, Advanced Technology, Healthcare, and Renewables. This de-risking solution incentivizes commercial banks to lend to eligible SMEs who might otherwise face financing challenges. By partnering with partner commercial banks, EDB provides partial guarantees and co-lending solutions, significantly enhancing SME financial inclusion since the launch of its strategy in April 2021.
The extended partnership agreement between EDB and Ajman Bank establishes frameworks for preferential financing and tailored financing products, while fostering capacity building and knowledge exchange between the SME networks of both banks.
About Emirates Development Bank:
Emirates Development Bank [EDB] the UAE's development bank is a key financial engine for the economic development and industrial advancement of the UAE. EDB provides financial and non-financial support to businesses of all sizes from start-ups, SMEs to corporates driving economic competitiveness across five strategic priority sectors: advanced technology, food security, healthcare, renewables, and manufacturing. EDB was established under Federal Law by Decree No. 07 of 2011 issued by the late Sheikh Khalifa bin Zayed Al Nahyan; and became operational in June 2015.
About Ajman Bank:
Ajman Bank is an Islamic bank with an ambitious vision based on values of integrity, trust and transparency seeks to provide a wide range of Sharia-compliant and high-quality banking services to customers from individuals, companies and government institutions across the UAE. It is also keen to be updated with the latest technology that will ensure customers a distinctive experimental banking with the revival of human touch that is lost in the modern era of banking application.
Ajman Bank is headquartered in Ajman and enjoys the strong support of the Government of Ajman and is a key pillar in the emirate's economic development strategy. The bank continues its tireless efforts to establish a prominent position in the banking sector as a sustainable Islamic banking institution, with an emphasis on the need to achieve an optimal balance in the community and caring staff, in order to provide real value for shareholders and customers alike.
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