ADDED launches SME finance facilitator programme

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The Abu Dhabi Department of Economic Development (ADDED) has partnered with the Emirates Classification Society (Tasneef) and the Abu Dhabi Chamber of Commerce and Industry (ADCCI) to launch the SME Finance Facilitator programme to boost access to financial services and enhance sustainable growth.

The programme is designed to improve access to financial services by facilitating the process of opening bank accounts and accessing credit facilities to support working capital needs and long-term growth.

The new initiative, which is being backed by leading Abu Dhabi banks, is part of ADDED’s ongoing efforts to enhance the business ecosystem for small and medium-sized enterprises (SMEs) as a key driver of a diversified and sustainable economy.

The department said the programme is a result of research, analysis and active engagements with SMEs, financial institutions and other stakeholders to address challenges facing SMEs.

“We are forging ahead with our efforts to empower SMEs and enhance their role in the next phase of our diversification strategy by contributing to non-oil GDP, creating new job opportunities in the knowledge-based economy and increasing exports,” said Mouza Obaid Al Nasri, executive director of SMEs Sector at ADDED.

The SME finance programme will assign financial facilitators to assist in understanding financial health checks and preparing financial and non-financial requirements. It aims to foster trust between SMEs and financial institutions and lead to transparent communication and collaborative credit assessment.

Working closely with participating banks, the assigned financial facilitator will also support qualified Abu Dhabi-based SMEs with preferential rates and fees for banking services and products.

ADDED fosters SME growth

SMEs are among the vital sectors in Abu Dhabi’s economy, accounting for 98 per cent of businesses, employing 46 per cent of the workforce, and contributing 42.8 per cent to the non-oil GDP.

Al Nasri said the SME finance programme is a valuable addition to ADDED’s initiatives as access to finance is a major challenge facing SMEs to grow and enhance their role in Abu Dhabi’s economy.

“The SME Finance Facilitator programme holds a pivotal role in evaluating, preserving and overseeing the quality of services offered by finance facilitator service providers,” said Khalfan Al Saadi, general manager at Tasneef Business Assurance.

“Tasneef, operating as a provider of business assurance services within the SME finance facilitator service, recognises the indispensable role of SMEs in propelling economic growth. We stress the significance of expertise, quality, transparency and punctual service delivery as fundamental pillars for the prosperity of this programme,” Al Saadi added.

Over the years, ADDED has rolled out various initiatives including the Abu Dhabi SME Champions programme to enable SMEs to identify and increase their share of procurement opportunities from private large companies and government-related entities.

SMEs are integral to the economic fabric of the UAE, contributing to economic diversification, job creation, innovation, and community development. The country’s commitment to supporting and nurturing the SME sector reflects its understanding of the vital role these businesses play in achieving long-term economic sustainability and competitiveness.