Emirates Development Bank (EDB), the primary financial driver of economic growth and industrial progress in the UAE, showcased its unique perspective on financing national development, fostering SME resilience, and adapting to the evolving treasury landscape at the ACT Middle East Treasury Summit 2024, which concluded today in Dubai.
The financing market is currently in a state of adjustment, characterised by reduced liquidity, rising interest rates, and increased risk aversion from traditional lenders. This situation poses significant challenges for small and medium-sized enterprises already facing funding shortfalls. Against this backdrop, EDB highlighted the urgent need for innovative financing solutions to maintain access to capital, driving innovation and growth among SMEs.
As the UAE’s sole development bank, EDB reaffirmed its commitment to bridging the financing gap and prioritising funding for businesses in sectors crucial to the UAE’s economic diversification strategy. The bank emphasised its patient debt model, which features long-term financing and competitive rates designed to support projects with substantial developmental impact.
EDB employs a proprietary ‘Development Impact Scorecard’ to assess the broader economic implications of projects, ensuring alignment with national priorities. Central to EDB’s strategy is a dedication to partnership and collaboration. The bank has formed agreements with 11 major commercial banks in the UAE to offer partial guarantees of up to 50% to SMEs, enhancing their access to essential financing.
Tariq Fancy, EVP, Financial Market and Acting Chief of Treasury & Investments at EDB, represented the bank at the summit, underscoring the importance of SMEs in national development and highlighting EDB’s tailored solutions. These include specialised loan programmes with flexible, long-term financing options and financial literacy initiatives to help SMEs secure funding and thrive.
