The Mohammed Bin Rashid Fund (MBRF) of Dubai SME, the agency of Dubai Economy mandated to develop the small and medium enterprise (SME) sector, and First Abu Dhabi Bank (FAB), the UAE’s largest bank and one of the world’s largest and safest financial institutions, have formed a partnership to launch a new receivable financing programme for Emirati- owned SMEs in Dubai.
The memorandum of understanding was signed at FAB’s Sheikh Zayed branch in Dubai, by H.E. Abdul Basit Al Janahi, CEO of Dubai SME, and Hana Al Rostamani, Group Head of Personal Banking at FAB, in the presence of senior officials from both parties.
Under the agreement, FAB will offer Dubai SME Emirati-owned suppliers with an easy and tailored solution to secure financing against sales invoices. In addition to settling payments, the programme will offer Emirati entrepreneurs with preferential rates, and a wide array of FAB’s suite of Business Banking products and services.
H.E. Abdul Basit Al Janahi, CEO of Dubai SME, said: “The partnership with FAB is a significant opportunity for Dubai SME Emirati-owned suppliers to benefit from the diverse financing options increasingly available in the UAE. Dubai SME has supported the growth and expansion of 7,000 startups since 2002. We also enable our member SMEs to benefit from government contracts and the net value of contracts thus facilitated by Dubai SME now stands at AED 5.2 billion.”
Al Janahi also emphasised Dubai SME’s commitment to building partnerships with businesses and organisations to ensure SME access to the required resources, including knowledge, human capital and funding to move confidently through every stage of their growth.
Commenting on the agreement, Hana Al Rostamani, Group Head Personal Banking, FAB, said: “We are pleased to have partnered with Dubai SME to support businesses through this unique and innovative banking solution. The MoU reaffirms FAB’s commitment towards supporting entrepreneurs by providing them with the financial support and technical expertise they require. This partnership promotes economic development and expansion while also enabling the country to become an entrepreneurial hub.”
Vikas Thapar, Head of Business Banking Group at FAB added: “As a leading supporter of the SME sector in the UAE, FAB was selected to help businesses overcome their long receivables processes by providing them with access to competitive financing rates.”
Emirati Entrepreneurs in Dubai SME will have access to exclusive benefits allowing them to receive payments through FAB in a quicker and more efficient manner, enabling them to increase their liquidity for further growth and expansion.