Khalifa Fund for Enterprise Development signs MoU with ADIB to deploy financing for SMEs

Press release

Published March 2nd, 2011 - 10:43 GMT

Al Bawaba

Khalifa Fund for Enterprise Development and Abu Dhabi Islamic Bank (ADIB), a top-tier Islamic financial services group, have signed a memorandum of understanding (MoU), to provide financial services for the Fund’s clients through ADIB’s branch network.

Under this agreement, ADIB will provide Credit Administration Services and processing of finance applications for Khalifa Fund’s customers. In addition, ADIB will designate a specialized center in Abu Dhabi to serve Khalifa Fund’s customers.

The agreement was signed by Ibrahim Al Mansoori, Deputy CEO of Khalifa Fund for Enterprise Development, and Mr. Tirad Mahmoud, CEO of ADIB, at the signing ceremony took place at ADIB’s premises.

Commenting on the MoU, Tirad Mahmoud, CEO of ADIB said: "We look forward to our partnership with the Khalifa Fund as its strategic programs are essential to the development and progress of Abu Dhabi. SMEs are a significant pillar of the economy and its growth. We are keen to support SME related projects to contribute to UAE’s growth.”

“This MoU reflects the ongoing efforts of ADIB’s Business Banking Group, to support SMEs in the UAE and to offer top of the line solutions and specialized products and services for all SME related organizations through the bank's extensive branch network,” he added.

Ibrahim Al Mansoori, Deputy CEO of Khalifa Fund for Enterprise Development, said: “This agreement enables Khalifa Fund to provide its financing programs within the purview of Islamic banking standards, enabling multiple options for all segments of the Fund's beneficiaries."

"The partnership is a result of the Fund's strategic direction to upgrade and develop its services, bringing about efficiency and shortened turn-around periods," he added.

He emphasized that the Fund’s mission is to fuel the entrepreneurial culture among UAE National entrepreneurs in order to strengthen the SME sector, and sustain a diversified economic environment in the UAE.

Al Mansoori confirmed that the agreement will be activated from the date of signing, noting that the Fund will continue to provide financing services through other commercial banks approved by the Fund.

ADIB’s Business Banking Division is a newly established vertical created to specifically cater to the needs of the untapped SME segment with a unique offering and comprehensive banking solutions. Through Business Banking, ADIB will provide bespoke financial solutions and advisory services. The division will also provide advisory services through dedicated SME relationship managers. Other offerings such as devoted call centres and alternative online channels will provide SMEs the best banking experience modeled specifically around their needs.

It is noteworthy that Khalifa Fund for Enterprise Development provides financial solutions through four programs: "Bedaya", which funds new projects with up to AED 3 million, "Zeyada" aims at financing the expansion of existing projects with up to AED 5 million, "Khutwa" dedicated to fund micro-projects with financing up to AED 250 thousand, in addition to "Tasnea”, which funds industrial projects worth AED 10 million.

Background Information

Khalifa Fund for Enterprise Development

Khalifa Fund was established in June 2007 by the virtue of the (Law 14 of 2005), as an independent, Not for Profit Small and Medium Enterprises (SMEs) Socio Economic Development agency of the Government of Abu Dhabi. The purpose of establishing the fund is to help develop local enterprises in Abu Dhabi by instilling and enriching the culture of investment amongst UAE nationals, as well as supporting and developing small to medium-sized investments in the Emirate. Khalifa Fund started with a total capital of AED 300 million, which was gradually increased to AED 2 billion and covering all the UAE.

Company Profile

Abu Dhabi Islamic Bank

ADIB is committed to being a responsible corporate citizen and to managing its business in a way that creates value for customers, shareholders, employees and the communities in which it operates.