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Dubai / WAM
Emirates Development Bank (EDB) board of directors has held its third meeting of 2018, chaired by Obaid Humaid Al Tayer, Minister of State for Financial Affairs and Chairman of the EDB Board of Directors. During the meeting, the board discussed various items on the agenda, making numerous decisions and implementing the recommendations previously taken by the executive management.
The board approved the plan to launch a direct financing programme for start-ups and emerging companies, thus contributing to supporting Emiratis and providing them with the necessary credit to start their companies and develop their businesses. An AED50 million fund has been approved for 2018, from which the programme will finance up to AED2 million for start-ups owned by Emiratis — with more than 51 percent ownership — in accordance with the Bank’s terms and conditions.
The board of directors also approved a AED100 million fund for the credit guarantee scheme to finance SMEs. The programme provides financing of up to AED2 million for start-ups where the bank guarantees 85 percent of the value of the financing, and AED5 million for existing companies where the bank guarantees 70 percent of the value of the financing.