UAE’s Emirates Development Bank allocates Dhs30m to finance SMEs through Beehive platform
EDB has initially allocated Dhs30m funding via the Beehive platform to qualifying businesses. Meanwhile, Beehive will facilitate business loans to creditworthy SMEs looking to expand operations or improve working capital. The EDB strategy aims to help SMEs gain access to finance and grow their business, in turn boosting their contribution to UAE’s non-oil GDP to over 70 per cent by 2021, besides enhancing in-country value, productivity and employment.
The announcement follows EDB’s commitment to support SMEs, startups and large corporates across five priority sectors including manufacturing, healthcare, infrastructure, food security and technology over the next five years, a statement said.
The Beehive platform uses crowdfunding technology to connect SMEs seeking finance with investors who can support their finance request, whilst earning attractive returns, official news agency WAM reported.
Ahmed Mohamed Al Naqbi, CEO of EDB, said: “The collaboration with Beehive is part of our mission to bridge the funding gap by offering SMEs greater and easier access to financial sources. Through our combined efforts, we look forward to strengthening the SME ecosystem and supporting the UAE’s goals to build a robust knowledge-based economy.”
In addition to its network of retail investors, Beehive has adapted its business model to include institutional investors to increase liquidity and the speed of funding for its businesses.
“The addition of institutional investors to Beehive will give SMEs more secure financing and better liquidity on the platform, which means that funding can be received faster too,” noted Craig Moore, founder and CEO of Beehive.