DUBAI, 16th September, 2018 (WAM) — The Board of Directors of Emirates Development Bank, EDB, has been awarded a Fitch AA- rating, being the first fully owned federal institution to have such a credit rating, which indicates the strength of the its financial position and credit strength.
During the meeting, which was held under the chairmanship of Obaid bin Humaid Al Tayer, Minister of State for Financial Affairs and Chairman of the EDB Board of Directors, the governing body discussed the items on the agenda and made a number of important decisions.
The financial statement for the first half of 2018 showed that the bank has accomplished a number of operational and regulatory achievements during this period, which will contribute to improving the financial performance and growth of the bank’s loan portfolio in the coming years.
Al Tayer expressed his pride in the bank’s attainment of this outstanding credit rating, calling it recognition of the great efforts exerted to achieve the best results, and motivation to continue to implement the Bank’s strategic plans in line with the UAE’s national agenda and Vision 2021.
The Board of Directors approved the launch of the AED50 million “Start-Ups Finance” programme, which aims to provide UAE entrepreneurs with the necessary financing to build and develop their businesses, supporting the entrepreneurship sector and emerging companies, and enhancing the contribution of the private sector to economic development in the UAE.
The bank will provide SME financing to emerging businesses of at least 51 percent Emirati ownership by offering flexible loans up to AED2 million with competitive rates. This programme is a pioneering step to address the challenges of obtaining bank credit to finance projects, enhancing the investment market, improving the business environment and boosting the country’s rating in the credit access index.
“We are confident that this programme will help to enable companies and projects owned and managed by Emiratis to receive financing support and banking solutions with the aim of increasing competitiveness and facilitating business, which will further the growth of the SME sector, a key pillar of the national economy,” Al Tayer added.
He confirmed that the SME financing products have achieved the desired success in terms of granting credit approvals for small and medium enterprises totaling AED380 million up to 31st August, 2018. Emirates Development Bank facilitates financing of up to AED30 million financing on flexible terms, aiming to contribute to creating more jobs for Emiratis and aid in transitioning to a knowledge-based economy that supports innovation and R&D.
Emirates Development Bank provides banking support to small and medium-sized enterprises by launching a credit guarantee programme to finance them. The programme provides guarantees for the financing of corporate Bank loans of up to AED2 million for start-up companies with a guarantee of up to 85% of the loan amount, and guaranteed financing of up to AED5 million for existing companies, where the Bank guarantees 70% of the loan amount.