The UAE’s primary government lender will allocate a majority of its budget next year to support the country’s under pressure small and medium enterprises (SMEs) sector.
Emirates Development Bank (EDB), which lends only to Emiratis, has allocated Dhs450 million of its Dhs1 billion budget for next year to boost the country’s SME sector, it said in a statement.
The lender also stated that it would finally set up a register of SME assets – the Emirates Movable Collateral Registry Corporation – from January 2018 to help these SMEs secure loans.
The registry would provide a nationwide register of SMEs’ movable assets including vehicles, equipment, and accounts receivables that companies could use to borrow against.
“This gives companies a greater finance opportunity at a lower cost,” the bank said.
According to the EDB, the Dhs450 million of enterprise finance includes Dhs100m allocated to banks participating in the Mohammed bin Rashid Innovation Fund.
The fund issues bank guarantees to help finance entrepreneurs in the creative sector.