Dh93b loans is­sued to SMEs in 3 months

Sup­port­ing SMEs is part of fed­eral govern­ment’s pol­icy to di­ver­sify econ­omy

Gulf News - - BUSINESS -

Dur­ing the first quar­ter of 2020, loans pro­vided by UAE banks to small and medium-sized en­ter­prises (SMEs) to­talled Dh93.4 bil­lion, an in­crease of Dh3.9 bil­lion or 4.3 per cent com­pared to Dh89.5 bil­lion in the fourth quar­ter of 2019.

The loans pro­vided ac­counted for some 8.1 per cent of the to­tal cu­mu­la­tive bal­ance of credit fa­cil­i­ties given to all pri­vate-sec­tor eco­nomic and com­mer­cial ac­tiv­i­ties in the first quar­ter of 2020, ac­count­ing for Dh1.149 tril­lion, ac­cord­ing to the Cen­tral Bank of the UAE’s sta­tis­tics.

Sup­port­ing SMEs is a pri­or­ity of the fed­eral govern­ment, as part of its pol­icy to di­ver­sify the na­tional econ­omy and gen­er­ate em­ploy­ment op­por­tu­ni­ties.

In light of this, the past pe­riod wit­nessed in­tense of­fi­cial and pri­vate ef­forts to sup­port SMEs and enable them to over­come their chal­lenges and ob­sta­cles.

Re­cently, a com­mit­tee was formed that in­cludes rep­re­sen­ta­tives of the Cen­tral Bank of the UAE, the Min­istries of Econ­omy, Fi­nance, Youth Af­fairs and Jus­tice, in ad­di­tion to the UAE Banks Fed­er­a­tion, the Emi­rates De­vel­op­ment Bank, the Al Eti­had Credit Bureau, SME de­vel­op­ment funds, the Khal­ifa Fund, and Dubai SME. The com­mit­tee is in charge of draft­ing a na­tional strat­egy that aims to pro­vide fi­nanc­ing for SMEs and en­sure their de­vel­op­ment.

SMEs rep­re­sent over 94 per cent of all com­pa­nies op­er­at­ing in the coun­try.

Viren­dra Sak­lani/Gulf News archives

Shop­pers tour stands dur­ing the Dubai SME event held at City Walk, in this file pic­ture.

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