Dubai SME and RAKBANK sign MoU to facilitate SME financing
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01-March-2017
Dubai SME, the agency of the Department of Economic Development (DED) in Dubai, mandated to develop the small and medium enterprise (SME) sector, as part of its efforts to enable its members access to competitive financing, has signed a memorandum of understanding (MoU) with RAKBANK.
The MoU will help eligible SME members based in Dubai secure financing at preferential interest rates, and discounted fees. Furthermore, the MOU assists eligible Dubai based SMEs in gaining access to RAKBANK's suite of Business Banking products such as transaction accounts, business loans, trade & working capital facilities, asset-based finance, and real estate finance as per mutually agreed terms.
"Dubai SME focuses on competitive solutions that support the entrepreneurial journey and enterprise life cycle. The MoU with RAKBANK is the latest in a series of such partnerships we continue to create after identifying a gap that existed in our SME landscape in terms of mobilising resources to overcome challenges and sustain growth," Abdul Baset Al Janahi, CEO of Dubai SME commented after signing the MoU with Peter England, CEO of RAKBANK.
The entrepreneurship development programs of Dubai SME are tailored to meet specific needs of entrepreneurs, starting from identifying entrepreneurial talent, early stage development, partner networks and participation in government procurement. Competitive SMEs are also being ranked under the Dubai SME100 program, which enables them to grow into global enterprises.
"We are pleased to have partnered with Dubai SME, as the MoU ultimately means providing Dubai based SMEs with the financial support they need to grow in today's challenging economic situation," said Peter England, CEO of RAKBANK. "This signing reaffirms the Bank's commitment to offer SMEs simple and convenient banking solutions that better suit their needs," added England.
"Our initiatives have had remarkable success in consolidating the SME potential in Dubai and we are encouraging our member SMEs to adopt best practices in corporate governance, human capital development and capacity building, to name a few. Easier access to finance will enhance confidence in the SME sector and keep SMEs in the forefront of the innovation-driven and knowledge-based economy envisioned in the Dubai Plan 2021," said Al Janahi.
Recently Dubai SME also launched RATE SME, a voluntary rating program aimed to increase efficiency and sustainability in the SME sector. The program seeks to contribute towards enhancing SME contribution to Dubai's GDP from its current 40% to 45% by 2021.