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Emirates Development Bank (EDB), a key driver of the UAE’s economic development, emphasized its dedication to supporting national development and SME growth during the ACT Middle East Treasury Summit 2024, held in Dubai.

The summit highlighted the challenges in the financing market, characterized by tightening liquidity, rising interest rates, and increasing risk aversion from traditional lenders. These factors have intensified the financing gaps faced by small and medium-sized enterprises (SMEs). In response, EDB outlined its innovative approach to ensure continued access to financing for SMEs and promote economic diversification.

As the UAE’s sole development bank, EDB reaffirmed its commitment to bridging the financing gap, focusing on sectors critical to the nation’s economic strategy. The Bank's approach includes long-term financing solutions with competitive pricing, tailored to projects that deliver significant developmental impact. To assess these projects, EDB uses a proprietary ‘Development Impact Scorecard,’ ensuring alignment with the UAE's national priorities.

A key component of EDB’s strategy is fostering partnerships with commercial banks. Through agreements with 11 major banks in the UAE, EDB offers partial guarantees of up to 50%, enabling SMEs to access essential financing. Additionally, EDB provides specialized loan programs with flexible terms and financial literacy support through initiatives like The Business Lab.

Tariq Fancy, EVP of Financial Market and Acting Chief of Treasury & Investments at EDB, emphasized the importance of SME resilience in national development. He highlighted the bank's collaboration with commercial lenders and the role of credit guarantees and co-lending programs in boosting SME growth.

EDB's participation at the summit underscores its commitment to fostering a resilient and inclusive financial ecosystem, contributing to the UAE’s long-term economic development.

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