Abu Dhabi Department of Finance (DoF) recently announced AED 6 billion supply chain financing initiative, to support small and medium enterprises (SME’s).
The first phase of the initiative aims to provide liquidity to the SME’s in the healthcare sector and works in association with the National Health Insurance Company (Dammam) and First Abu Dhabi Bank (FAB).
Jassem Mohammed Bu Ataba AlZaabi, Chairman of the Abu Dhabi Department of Finance, said “The SMEs are the lifeblood of the economy and the key to sustainable growth for the Emirate of Abu Dhabi. We are launching this initiative as part of our fiscal sustainability strategy in order to have continued liquidity for the SME’s.”
This initiative funded by Ghadan 21’s SME credit guarantee scheme, shows the significant commitment of the Emirate to support and sustain the SME’s all throughout the pandemic and in the future. This initiative currently focuses on the healthcare sector; it will soon be extended to banking and other sectors.
“The UAE has made remarkable strides as a leading nation in the global healthcare landscape. There was a huge contribution from many of the SME’s within the healthcare sector. We are pleased to partner with the Department of Finance and FAB to ensure business continuity and liquidity for those committed to protecting the health and safety of Abu Dhabi citizens and residents,” said Hamad Al Mehyas, Chief Executive Officer, Dammam.
The initiative will benefit the SME’s as it now offers quick payment facilities of their receivables which will in fact reduce their costs of working capital. Before the pandemic struck, the SME’s contributed 29% to the GDP and 44% to the non-oil economy in 2019. It is important for the Emirate to support the SME’s as they are a critical element of Abu Dhabi’s diversification strategy to move forward as a knowledge-based economy.
André Sayegh, Group Chief Executive Officer, FAB, commented, “FAB is fully committed to the economic objectives of Abu Dhabi, supporting the on-going development of a world-leading healthcare ecosystem within the Emirate. We believe that the new initiative will offer the SME’s enough opportunity to continue their sustainable growth with necessary liquidity while maintaining healthcare supply chains throughout the pandemic and beyond.”
The Emirate has been providing support to businesses ever since the outbreak of COVID-19; the new initiative announced is the beginning of something bigger that is yet to come. UAE as a whole has been in the forefront to support its people and their businesses in every possible way, through initiatives and government policies.