Saturday 24 July 2021 - 11:34:39 am

New partnership between Department of Finance, ADCB, ADIB, FAB provides more financing options for SMEs


ABU DHABI, 16th April, 2020 (WAM) -- In line with the directives of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Chairman of the Abu Dhabi Executive Council, to take further measures to prioritise SMEs, the Abu Dhabi Government has expanded the SME Credit Guarantee Scheme, increasing SME’s access to financing in the Emirate.

A new joint partnership between the Department of Finance and ADCB, ADIB and FAB will provide small and medium-sized companies with more financing options.

Under the partnership, the government will guarantee up to 80 percent of the value of the scheme extended to SMEs, bolstering businesses’ resilience to withstand market fluctuations.

The decision provides SMEs with wider access to renewable financing options for working capital loans for a three-month duration and term loans for a up to four-year duration to support further investment in Abu Dhabi. The scheme is available to all SMEs that are registered, operating and headquartered in the Emirate.

The new partnership is part of Abu Dhabi’s Economic Stimulus Package announced in March 2020. The package includes 16 initiatives to facilitate economic activity, reduce the costs of living and support businesses in the emirate.

SMEs represent a vital component of Abu Dhabi’s business landscape, accounting for 98 percent of all companies in the Emirate, 29 percent of its GDP, and 44 percent of the non-oil economy. Providing this significant sector with more financing options during this period creates invaluable long-term economic returns and ensures a sustainable and robust path towards Abu Dhabi’s knowledge-based, diversified economy.

With immediate effect, SMEs can apply directly to ADCB by writing to: commercial@adcb.com, for more information they can also visit: https://www.adcb.com/en/business/commercial/, ADIB at http://www.adib.ae/en/business, and FAB at https://www.bankfab.com/en-ae/business/sme-growth-loan to benefit from the SME Credit Guarantee Scheme. Lending is subject to the banks’ lending policies and terms and conditions.

 

WAM/Hatem Mohamed