A new lending feature introduced by the Emirates Development Bank (EDB) will allow SMEs and startups in the UAE to get loans of up to AED5 million approved within five days via the organisation’s digital banking app. If the loan isn’t approved, the startup will receive feedback on why this is the case, it said in a press release issued Monday.
EDB said the service, launched in partnership with peer-to-peer lending platform Beehive, is the first of its kind in the UAE, and “a major milestone to enhance access to finance for SMEs and further simplify the ease of doing business in the country.”
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The service will be available for UAE-based SMEs operating in one of EDB’s five priority sectors – manufacturing, healthcare, food security, advanced technology, and infrastructure.
EDB’s app lets startups kick-start their businesses, by providing a business bank account and an IBAN number within 48 hours and then offering round-the-clock banking services.
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Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB, said, “It is clear that swift access to finance is one of the biggest challenges that SMEs face.”
“SMEs play an important role in the UAE’s vision in becoming a diversified economy and help shape the UAE as a global investment hub. We are continuously looking to collaborate with fintech companies and financial partners to ease the financing process for SMEs and allow for quick and easy access to the bank’s financial services.”
Meanwhile, Craig Moore, founder and CEO of Beehive, said: “Our partnership with EDB is key to increasing the accessibility of financing to SMEs, enabling growth and providing more opportunities”.
Earlier this month, EDA announced it was able to mobilise AED351 million in capital in the first half of 2022 to support SMEs via its credit guarantee scheme, a 109% increase from the AED168 million deployed across 2021.
In July the bank said it is partnering with Future Factory - which specializes in building “smart” factories, improving manufacturing processes and drawing up future business strategies - to offer SMEs within EDB’s portfolio advice and consultancy services at no charge.