Here is some good news for small and medium enterprises (SMEs) in UAE. The country’s primary government lender, Emirates Development Bank (EDB) has decided to set aside a large part of its fund to support the SMEs sector.
EDB, that lends only to Emiratis, is said to be allocating AED 450 million from its AED 1 billion budget for next year to boost the country’s SME sector.
The allocated fund includes AED 100 million allocated to banks participating in the Mohammed bin Rashid Innovation Fund. “This gives companies a greater finance opportunity at a lower cost,” the bank said.
EDB is also setting up a register of SME assets, effective 2018 that will help secure these loans.
Under the the Emirates Movable Collateral Registry Corporation, SMEs can register their movable assets like vehicles, equipment and accounts which can be used by banks to loan against.