Gulf Today, Saturday , Aug 19, 2023 |
Safar 03, 1445
EDB signs deal to finance SMEs
Emirates Development Bank (EDB) has inked a Memorandum of
Understanding to create supply chain finance and working capital solutions for
SMEs in collaboration with Trade Capital Partners (TCP).
This partnership was facilitated by Hub71, Abu Dhabi’s global tech ecosystem, as
part of its efforts to support startups with commercial opportunities through
its network of leading corporate and government partners in the UAE.
In alignment with government priorities, EDB continues to deliver on its mission
of fostering a healthy, sustainable, and self-reliant economy, with a mandate to
approve Dhs30 billion in financing support to 13,500 companies within its five
priority sectors - renewables, manufacturing, technology, healthcare, and food
security - by 2026.
The MoU will see the creation of a working group to discuss new ways of
delivering supply chain financing to small and medium enterprises in the UAE.
Supply chain finance reduces the risk of supply chain disruption and enables
both buyers and suppliers to optimize their working capital.
Shaker Zainal, Chief Business Officer of Emirates Development Bank, said, “We
are constantly looking at new and innovative ways to support SMEs, which
contribute more than 60% of the UAE’s non-oil GDP. Under this MoU, we will
leverage our expertise combined with TCP’s platform to jointly bring more
financing solutions to a wider range of businesses. This reflects our value of
excelling through partnerships and will further support the growth of SMEs and
promote innovation in UAE.” Bill Crawley, Founder & COO of TCP, said, “SMEs are
the driving force of an economy, and start-ups are the future drivers. In line
with other government initiatives to grow and drive these sectors, this
partnership will provide significant support to this ecosystem and provide trade
finance alternatives to growing businesses.
“Leveraging state-of-the-art technology and processes, TCP will revolutionize
the landscape of trade finance, empowering entrepreneurs, SME’s and startups to
unleash their potential and thrive in the domestic and global marketplace.”