DUBAI: Emirates Development Bank (EDB), the key financial engine of economic development and industrial advancement in the UAE, highlighted its unique perspective on financing national development, SME resilience and the evolving treasury landscape at the ACT Middle East Treasury Summit 2024, concluding today in Dubai.

The financing market is currently experiencing a period of adjustment marked by tightening liquidity, rising interest rates, and increased risk aversion from traditional lenders. This is particularly challenging for small and medium size businesses who were already facing financing gaps. Against this backdrop, EDB underscored the need for innovative financing solutions to ensure continued access to financing to drive innovation and SME growth.

As the UAE’s only development bank, EDB reaffirmed its commitment to bridging the financing gap and prioritizing financing for businesses in sectors of strategic importance to the UAE’s economic diversification agenda. The bank highlighted its patient debt approach, characterized by long tenor financing and competitive pricing, which is specifically designed to support projects with high developmental impact.

The Bank employs a proprietary ‘Development Impact Scorecard’ to assess the broader economic impact of projects, ensuring alignment with national priorities.

Central to EDB’s strategy is a commitment to partnership and collaboration. The Bank has established agreements with 11 major commercial banks in the UAE to offer partial guarantees of up to 50% to SMEs, facilitating increased access to crucial financing.

Representing EDB at the event was Tariq Fancy, EVP, Financial Market and Acting Chief of Treasury & Investments at EDB, who emphasised the importance of SMEs in national development and highlighted EDB’s tailored solutions. This includes specialised loan programmes with flexible, long-term financing options, and financial literacy through initiatives like The Business Lab and user-friendly banking tools, making it easier for SMEs to secure financing and thrive.

He also underlined the importance of collaboration with commercial banks and the role of credit guarantees and co-lending in supporting SME resilience.

The summit brought together a powerful network of treasurers, finance professionals, and industry leaders to explore the latest trends, challenges, and opportunities within the financial landscape. EDB's participation underscores its commitment to knowledge sharing and shaping a more resilient and inclusive financial ecosystem within the region.