Abu Dhabi, UAE – In a major move to strengthen the UAE’s micro, small and medium enterprise (MSME) ecosystem, Emirates Development Bank (EDB) and RAKBANK have announced a landmark AED 1 billion joint financing initiative. The announcement was made during the prestigious Make it in the Emirates Forum at the ADNEC Centre in Abu Dhabi.
The programme, with AED 500 million contributed by each institution, is one of the largest MSME-focused lending efforts in the region. It aims to enhance access to capital for businesses operating in priority national sectors, including manufacturing, advanced technology, food security, renewable energy, and healthcare.
In a bid to foster innovation and national economic diversification, the initiative also places a strong emphasis on greenfield ventures and businesses based in the Northern Emirates, including Ras Al Khaimah, Umm Al Quwain, and Fujairah.
Strategic Economic Support
Ahmed Mohamed Al Naqbi, CEO of Emirates Development Bank, stated:
“At EDB, we’ve committed more than AED 18.8 billion in financing since 2021 to accelerate economic transformation, and we know from experience that unlocking MSME growth is one of the most effective ways to strengthen our industrial base. This AED 1 billion co-financing platform is a signal that we are serious about empowering the entrepreneurs and manufacturers who will lead our economy into its next chapter.”
Raheel Ahmed, Group CEO of RAKBANK, echoed the sentiment, saying:
“By joining forces with Emirates Development Bank, we’re not just unlocking capital, we’re creating real opportunities for entrepreneurs to grow, scale, and contribute to a more dynamic and sustainable national economy.”
Programme Highlights
The co-lending structure will allow eligible businesses to access financing at competitive rates and will be governed by performance benchmarks. These include strategic allocations for ventures with national ownership and businesses located in underrepresented regions of the UAE.
RAKBANK will take the lead in managing risk assessment and portfolio oversight and will provide monthly performance updates to EDB. The two banks will also collaborate on stakeholder engagement and awareness campaigns to ensure wide visibility and participation in the programme.
The AED 1 billion fund is expected to be fully deployed within the next 12 months.
A Milestone for Industrial and Entrepreneurial Growth
The launch marks a significant milestone for the UAE’s industrial and entrepreneurial development. It reinforces the government’s commitment to building a robust, diversified economy by supporting businesses that drive innovation, sustainability, and job creation.
This initiative is part of the broader national vision under the Make it in the Emirates campaign, which encourages industrial growth and aims to position the UAE as a global hub for future industries.
