EDB, Trade Capital partner to launch supply chain financing for SMEs

UAE’s Emirates Development Bank (EDB) has signed an MoU with Trade Capital Partners (TCP) to create supply chain finance and working capital solutions for small to medium enterprises (SMEs) in the country.

The partnership between the two entities was facilitated by Abu Dhabi’s Hub71 as part of a broader strategy that is aimed at supporting startups with commercial opportunities through its network of leading corporate and government partners.

The MoU will see the creation of a working group to discuss new ways of delivering supply chain financing to SMEs in the UAE.

Supply chain finance reduces the risk of supply chain disruption and enables both buyers and suppliers to optimize their working capital.

“We are constantly looking at new and innovative ways to support SMEs, which contribute more than 60 per cent of the UAE’s non-oil GDP,” said Shaker Zainal, chief business officer of Emirates Development Bank.

“Under this MoU, we will leverage our expertise combined with TCP’s platform to jointly bring more financing solutions to a wider range of businesses.”

EDB continues to deliver on its mission of fostering a healthy, sustainable, and self-reliant economy, with a mandate to approve Dhs30bn in financing support to 13,500 companies within five priority sectors – renewables, manufacturing, technology, healthcare, and food security – by 2026.

“SMEs are the driving force of an economy, and start-ups are the future drivers,” said Bill Crawley, founder & COO of TCP.

“In line with other government initiatives to grow and drive these sectors, this partnership will provide significant support to this ecosystem and provide trade finance alternatives to growing businesses.”

EDB supports SME ecosystem

Meanwhile, the EDB’s mandate includes the provision of financing towards the development of the UAE’s economy in five strategic sectors by 2026 – Dhs5m is to be allocated through credit guarantee schemes.

EDB unveiled the UAE’s first Agritech loans programme in June, an initiative that will see the development bank providing Dhs100m in financing support for the country’s vital food security sector.

The financing programme is designed to enable a sustainable and thriving national agriculture sector, positioning the UAE as a global leader in agricultural innovation.

The bank unveiled a comprehensive set of approvals for financing deals totalling Dhs424m during Make it in the Emirates Forum as part of a broader strategy to further diversify the economy and cement the country’s position as a global manufacturing hub.

EDB is playing a central role in supporting the UAE economic development agenda and is at the forefront of the government’s efforts to develop its non-oil economic and industrial base.

The bank is a financial enabler of the country’s economic diversification and industrial transformation agenda, toward building a knowledge-based economy.

The is working with 11 commercial banks for its credit guarantee scheme, which offers favourable financing solutions to SMEs.

These include the Commercial Bank of Dubai, National Bank of Umm-Quwain, Emirates NBD, Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Mashreq Bank, RAK Bank, National Bank of Fujairah, Dubai Islamic Bank and Emirates Islamic.

Read: Make it in the Emirates Forum: EDB unveils Dhs424m in financing deals