Mohammed bin Rashid Fund (MBRF), the financial arm of Dubai SME and an affiliate of Dubai’s Department of Economic Development (DED), has expanded the partnership agreement with UAE-based Beehive which will cross the $50 million mark of total funding for SMEs across the platform this month.
Beehive is the Middle East and North Africa (Mena) region’s first regulated peer-to-peer lending platform.
Following a successful initial launch, MBRF and Beehive have broadened the scope of the agreement to increase the credit guarantee to Dh750,000 ($204,187) and also offer Sharia Compliant Invoice Finance, a short-term finance option for businesses wishing to improve cash flow, said a statement.
The agreement seeks to support entrepreneurial projects in Dubai, owned and operated by Emirati nationals, by facilitating commercial loans for business purposes, such as financing invoices and purchase orders, it said.
Abdul Baset Al Janahi, CEO of Dubai SME and Craig Moore, founder and CEO of Beehive, signed the agreement which marks the second phase of the partnership between the two parties to offer entrepreneurs best-in-class financing services through Beehive’s crowdfunding platform.
Under the agreement, Beehive pledges to examine SME projects for feasibility and facilitate loans through its digital platform.
Dubai SME, for its part, will offer guarantees for loans provided by Beehive to companies owned by Emirati nationals, according to the terms and conditions agreed-upon between the two parties.
Also under the agreement, Beehive will offer participating SMEs a 25 per cent discount on the process of preparing the corporate classification system on a financial or non-financial basis, said the statement.
Al Janahi said: “The agreement embodies Dubai SME’s commitment to supporting Emirati entrepreneurs by providing them with superlative business solutions and empowering them to meet the rapidly changing demands of the business environment and various sectors.”
“This, in turn, helps ensure growth and improve competitiveness of the SME sector, where financing is a major factor,” he added.
Moore said: “Following the successful launch of our partnership, we’re excited to be entering the second phase of our agreement with MBRF.”
“The new scope of our alliance will provide even greater opportunities to support local entrepreneurs with affordable, accessible finance and help drive the growth of the wider SME ecosystem,” he added. -TradeArabia News Service
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