RAKBANK agrees MoU with Ajman Free Zone for SME financing

The National Bank of Ras Al Khaimah (RAKBANK) has signed an MoU with the Ajman Free Zone to form a strategic alliance to support SMEs.

As part of the deal, RAKBANK will offer SMEs and larger businesses based in the Ajman Free Zone easy access to account opening services, loans, credit facilities, and other banking solutions.

A statement issued by the bank added that among it will also offer the RAKstarter account, Business Current Account, as well as the priority service banking at preferential pricing called RAKelite Business to customers of Ajman Free Zone.

The bank’s financing products which will be offered to the free zone’s customers include business loans, point of sale financing, term and working capital financing, real estate financing, asset-based financing, as well as cash management services.

“SMEs play a significant role in driving social and economic development of the country and Ajman Free Zone is committed to supporting them through strategic partnerships that facilitate their business operations. Through this MoU, we hope to bring key incentives and affordable financing solutions to the Ajman Free Zone business community, which reflects our shared commitment to advance SMEs’ aspirations to grow their business,” said Ali AlSuwaidi, director general of Ajman Free Zone.

Dhiraj Kunwar, managing director of Business Banking at RAKBANK, added: “We are pleased to have partnered with Ajman Free Zone, as the MoU ultimately means providing Ajman based SMEs with the financial support they need to grow in today’s challenging economic situation. This signing reaffirms the Bank’s commitment to offer SMEs simple and convenient banking solutions that better suit their needs.”

Read: Almost 9 out of 10 UAE-based SMEs are optimistic about the next 12 months – study

According to a recent Mastercard Middle East and Africa (MEA) SME Confidence Index study, SME confidence in the UAE is on the rise. Eighty-eight per cent of SMEs in the country are optimistic about the next 12 months and 66 per cent are projecting revenues that will either grow or hold steady. The study also revealed that UAE-based SMEs have identified easier access to funding (40 per cent), acceptance of digital payments (34 per cent) and training and upskilling staff (34 per cent) as top three drivers for growth.