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DoF partners Daman, FAB to launch DH 6 bn package for SME’s

DoF will partner national health insurer Daman and First Abu Dhabi Bank (FAB) to complete the first phase of the initiative

The government of the Emirates has unveiled a DH 6 billion supply chain financing initiative for SMEs, media reports said. It is reported that the initiative will be carried out by the Abu Dhabi department of finance (DoF).

DoF will partner national health insurer Daman and First Abu Dhabi Bank (FAB) to complete the first phase of the initiative and will provide support to SMEs’ in the healthcare segment. Furthermore, the initiative will be sponsored by Ghadan 21’s SME credit guarantee scheme. The initiative will initially target SME’s in the health segment before catering sectors such as banking and others.

The new initiative is similar to the last year’s central banks’ initiative known as Targeted Economic Support Scheme (TESS).

The Ghadan 21 is the government of Emirates accelerator programme worth DH 50 billion. The programme aims to enhance the regions’ business environment, spur innovations and drive competitiveness.

The initiative is expected to bolster SME’s as it will provide rapid payment for the receivables by cutting down their working capital. The SME’s in Abu Dhabi accounted for 29 percent of GDP and 44 percent of the non-oil economy in 2019.

Andre Sayegh, Group CEO of FAB, told the media, “This initiative will provide SMEs in the Emirate with the necessary liquidity to continue their sustainable growth while maintaining healthcare supply chains throughout the COVID-19 pandemic response and beyond.”

The Covid-19 pandemic has walloped the global economy and the governments of different economies are striving for a rebound this year.

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