According to the agreement, the National Bank of Ras Al Khaimah provides financing of up to 10 million dirhams to small and medium-sized companies, provided that 50% of the value of the facilities is either guaranteed by a guarantee or joint lending by the Emirates Development Bank.
The program also aims to support citizens of the country wishing to obtain financing to establish their start-up companies and develop their businesses by providing financing facilities amounting to one million dirhams, so that 60% of this amount is either guaranteed or joint lending by the Emirates Development Bank.
The MoU was signed by Ahmed Mohamed Al Naqbi, CEO of Emirates Development Bank, and Peter England, CEO of Ras Al Khaimah National Bank.
The agreement falls within the framework of the Emirates Development Bank’s efforts to support economic diversification plans in the country, by launching a package of pioneering projects and qualitative initiatives, in addition to providing comprehensive financing products and solutions to enhance the business environment in the United Arab Emirates.
Commenting on this partnership, Ahmed Mohammed Al Naqbi said: “At Emirates Development Bank, we seek to support companies and entrepreneurs and provide them with innovative financing solutions, which enhances the country’s efforts to achieve sustainable development in the small and medium enterprise sector, which contributes to supporting the national economy. Our agreement with the National Bank of Ras Al Khaimah will help provide bank financing for small and medium-sized companies to establish their businesses and commercial activity in the country, which supports the growth of their businesses and enhances their role in contributing to building a strong economy.”
In turn, Peter England said: “This agreement is in line with the bank’s commitment to improving and strengthening the presence of small and medium businesses in the country by providing better financial support and appropriate banking solutions that suit their needs. Developing the national economy is also a top priority at RAKBANK, and this partnership embodies this by supporting key sectors in the country such as manufacturing, healthcare, infrastructure, food security and advanced technology. All this while targeting a wider customer base and providing facilities to citizens and residents of the United Arab Emirates alike.”
The memorandum of understanding is in line with the Emirates Development Bank’s recently launched strategy, which provides direct and indirect lending to small and medium enterprises (long-term financing, project financing and receivables), and constitutes an investment arm for startups and small and medium enterprises, in addition to business advisory services for entrepreneurs, emerging companies and small companies ( Training, extension and market research).