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EDB home finance reaches Dh818 m in Q1 2018

The UAE National Home Finance portfolio of Emirates Development Bank (EDB) reached Dh818 million during the first quarter of 2018, up by Dh213 million from Dh605 million disbursed in the corresponding period of 2017, an official statement said.

The EDB Board of Directors approved the plan to launch a Direct Financing Programme for start-ups and emerging companies, thus contributing to supporting Emiratis and providing them with the necessary credit to start their companies and develop their businesses. A Dh50 million fund has been approved for 2018, from which the program will finance up to Dh2 million for start-ups owned by Emiratis (with more than 51 percent ownership) in accordance with the Bank’s terms and conditions. The Direct Financing program has a competitive interest rate and a flexible repayment option.

The Small and Medium Enterprises (SME) financing reached Dh345 million in the first quarter of 2018. The launch of the Emirates Moveable Collateral Registry Corporation (EMCR) achieved a remarkable success with the issuance of a record 11,617 registered certificates for movable and mortgaged assets. The Electronic Asset Registry System is already used by 50 banks of the total number of banks operating in the UAE with more than 344 system users.

The Board of Directors also approved a Dh100 million fund for the Credit Guarantee Scheme to finance SMEs.  The programme provides financing of up to Dh2 million for start-ups where the bank guarantees 85 percent of the value of the financing, and Dh5 million for existing companies where the bank guarantees 70 percent of the value of the financing.

Obaid Humaid Al Tayer, Minister of State for Financial Affairs and Chairman of the Emirates Development Bank, said: “Emirates Development Bank supports the efforts exerted at all levels to improve the country's development, to help Emiratis own their homes, and support the continued growth of the local economy by helping Emirati entrepreneurs successfully establish their businesses. This comes in line with the National Agenda and the objectives of the UAE Vision 2021 that aim to increase the contribution of the private sector in the economic development of the country.”

He highlighted that the UAE National Home Finance strategy has achieved significant success in enabling Emiratis to purchase or construct their own homes, improving their standard of living and easing their financial burden, enabling them to attain social stability in order to achieve high levels of satisfaction and happiness. Home Finance products include home purchase facilities up to Dh5 million and home construction up to Dh3 million.

Emirates Development Bank was established under Federal Law by Decree No. 07 of 2011 issued by His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, and became operational in June 2015 under the patronage of His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs. The bank launched its second branch in Dubai to provide comprehensive and easily accessible banking services to UAE nationals, an important strategic step within the overall vision of the Bank and in pursuit of its objectives to reach all customers throughout the UAE.