Emirates Development Bank Reaffirms Commitment to Driving National Development and SME Growth

Emirates Development Bank (EDB), a key driver of economic development in the UAE, emphasized its role in financing national development and supporting small and medium-sized enterprises (SMEs) at the ACT Middle East Treasury Summit 2024, which concluded in Dubai today.

Amidst a tightening liquidity market and rising interest rates, SMEs face increasing challenges in securing financing. Traditional lenders have become more risk-averse, creating significant financing gaps. In response, EDB underscored the importance of innovative financing solutions to sustain SME growth and drive innovation.

As the UAE’s only development bank, EDB reaffirmed its commitment to closing these financing gaps, prioritizing businesses in sectors crucial to the UAE’s economic diversification. The bank employs a "patient debt" approach with long-term, competitively priced financing designed to support projects with significant developmental impact.

EDB also introduced its proprietary Development Impact Scorecard, ensuring that financed projects align with national priorities. Partnerships are at the core of EDB’s strategy, with agreements in place with 11 major UAE commercial banks, offering partial guarantees of up to 50% to enhance SME access to finance.

Tariq Fancy, EVP of Financial Markets and Acting Chief of Treasury & Investments at EDB, highlighted the bank’s tailored solutions, including flexible loan programs and financial literacy initiatives like The Business Lab. These initiatives aim to improve SME access to financing and foster resilience.

The summit gathered financial experts to discuss the evolving treasury landscape, with EDB’s participation reinforcing its commitment to creating a more inclusive and resilient financial ecosystem in the region.

News Source: Emirates News Agency