Emirates Development Bank (EDB), the key financial engine of UAE economic development and industrial advancement, will create supply chain finance and working capital solutions for SMEs in collaboration with Trade Capital Partners (TCP). For this the bank has inked a Memorandum of Understanding (MoU).
This partnership was facilitated by Hub71, Abu Dhabi’s global tech ecosystem, as part of its efforts to support startups with commercial opportunities through its network of leading corporate and government partners in the UAE.
In alignment with government priorities, EDB continues to deliver on its mission of fostering a healthy, sustainable, and self-reliant economy, with a mandate to approve AED30 billion ($8.2 billion) in financing support to 13,500 companies within its five priority sectors - renewables, manufacturing, technology, healthcare, and food security - by 2026.
The MoU will see the creation of a working group to discuss new ways of delivering supply chain financing to small and medium enterprises in the UAE. Supply chain finance reduces the risk of supply chain disruption and enables both buyers and suppliers to optimise their working capital.
Shaker Zainal, Chief Business Officer of Emirates Development Bank, said: “We are constantly looking at new and innovative ways to support SMEs, which contribute more than 60% of the UAE's non-oil GDP. 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. This reflects our value of excelling through partnerships and will further support the growth of SMEs and promote innovation in UAE.”
Bill Crawley, Founder & COO of TCP, said: “SMEs are the driving force of an economy, and start-ups are the future drivers. 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.
“Leveraging state-of-the-art technology and processes, TCP will revolutionise the landscape of trade finance, empowering entrepreneurs, SME’s and startups to unleash their potential and thrive in the domestic and global marketplace.”-- TradeArabia News Service