x Abu Dhabi, UAESaturday 22 July 2017

Lenders bolster financing access for UAE small businesses

Dubai Islamic Bank and Noor Islamic Bank have launched new products to help boost capital financing for small-to-medium enterprises.

DIB has launched a Sharia-compliant SME service. Ryan Carter / The National
DIB has launched a Sharia-compliant SME service. Ryan Carter / The National

Dubai Islamic Bank (DIB) has launched a new Sharia-compliant service that it says will help to support the growth of small-to-medium enterprises (SMEs) in the UAE.

SME Business Solutions offers small business owners a range of products and services to help them grow, such as easier access to financing, foreign-exchange services and letters of credit and guarantee.

"Small business is the growth engine of the UAE economy," says Adnan Chilwan, the deputy chief executive of DIB.

"In Dubai, for example, SMEs make up 95 per cent of all companies, employ 42 per cent of the workforce and contribute 40 per cent to the emirate's GDP."

The lender, which is 50 per cent owned by the Dubai Government, says small business owners will be able to access working-capital finance, capital-expenditure finance, and contracting and fleet finance, which can be repaid over periods of up to 48 months.

"Business finance solutions have been designed to meet the specific needs of SMEs, which, worldwide, frequently face challenges accessing finance," the bank says.

Go to www.dib.ae for details.

Still with SMEs, Noor Islamic Bank is offering a new product that is aimed at catering to the financial requirements of small businesses.

The bank's Business Instalment Finance package offers current customers fixed-term financing of up to Dh750,000 over a 48-month tenure, with "minimal documentation and processing time" required.

"We recognise the significant role small-sized businesses play in the UAE economy," says John Chang, the head of retail banking at Noor.

"Our new products are designed to give our customers the opportunity to enter the market or expand their existing businesses in the UAE."

Visit www.noorbank.com for more information.