The National Bank of Ras Al Khaimah (RAKBANK) and Emirates Development Bank (EDB) have entered into a joint co-financing arrangement worth AED 1 billion, aimed at fostering growth within the UAE’s priority sectors.
According to a press statement, the initiative is designed to bolster micro, small, and medium-sized enterprises (mSMEs) operating within the country.
This strategic alliance represents one of the region’s most substantial co-lending schemes specifically tailored to support mSMEs.
The programme is set to improve access to funding for enterprises engaged in manufacturing, advanced technology, food security, renewable energy, and healthcare across the UAE.
Ahmed Mohamed Al Naqbi, Chief Executive Officer of Emirates Development Bank, commented: “At EDB, we have extended over AED 18.8 billion in financing since 2021 to drive economic transformation. From experience, we understand that facilitating mSME growth is among the most effective means to reinforce our industrial sector.”
Raheel Ahmed, Group Chief Executive Officer of RAKBANK, stated: “This AED 1 billion funding initiative is a significant advancement in our ongoing efforts to better serve the sector. Partnering with Emirates Development Bank enables us not only to unlock capital but also to generate meaningful opportunities for entrepreneurs to expand, scale up, and contribute to a more resilient and forward-looking national economy.”
The fund is expected to be fully deployed within a 12-month timeframe from the date of agreement. RAKBANK will manage risk underwriting and oversee the portfolio, delivering monthly performance updates to EDB.
