The Emirates Development Bank (EDB) has entered into a partnership agreement with Trade Capital Partners (TCP), which aims to create a solution for supply chain financing and working capital for small and medium-sized businesses in the United Arab Emirates (UAE).
The joint press release of the partners, published last Thursday, August 17, contains information that this cooperation is carried out with the assistance of the Abu Dhabi Hub71 global technology ecosystem. The interaction of EDB and TCP aims to support startups and provide them with commercial opportunities through a network of government and corporate partners.
The press release contains information that the bank plans to provide financial support in the amount of 30 billion dirhams (about $8 billion) to 13,500 firms operating in priority sectors of the economy by 2026. Within the framework of cooperation with TCP, the lender will create a working group that will study options for innovative financing of the supply chain necessary for the functioning of companies belonging to the categories of small and medium-sized businesses in the UAE.
The press release also indicates that from the point of view of the viability of business operations, cash injections to support supply chains are the main task. The financial base helps to reduce the risk of failures and provides sellers and buyers with the opportunity to optimize working capital. As part of the partnership program with TCP, the bank plans to offer more solutions to a wider range of businesses that contribute to the sector of the UAE’s GDP structure that is not related to oil production and export of raw materials and have a share of about 60% in this space.
Shaker Zainal, Commercial Director of EDB, announced the commitment of the financial institution to support small and medium-sized businesses. He also noted that the bank is interested in implementing innovative solutions. According to him, in the context of achieving the goals of a financial institution, a partnership with TCP is important.
Bill Crawley, founder and Chief Operating Officer of TCP, noted that small and medium-sized businesses, as well as startups, are the driving force in the process of developing the economic system. He also stressed that the partnership with the bank will support the ecosystem and offer alternative options for trade financing of growing businesses.
As we have reported earlier, UAE to Establish Blockchain-Based National Carbon Credit System.
