New partnership between the Department of Finance and top banks to prioritize funding for SMEs
In line with the directives of HH Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Abu Dhabi Executive Council, the Abu Dhabi Government has expanded the SME Credit Guarantee Scheme, increasing SMEs access to financing in the Emirate.
A new joint partnership between the Department of Finance and top lending institutions ADCB (Abu Dhabi Commercial Bank), ADIB (Abu Dhabi Islamic Bank) and FAB (First Abu Dhabi Bank) will provide small and medium-sized companies (SMEs) with more financing options.
Under the partnership, the government will guarantee up to 80% 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% of all companies in the Emirate, 29% of its GDP, and 44% 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, a press statement from the Abu Dhabi Government Media Office indicated.
