ADCB and the Khalifa Fund will set up a number of customer centres, called ADCB-Khalifa Fund Centres for Entrepreneurship , dedicated to servicing existing customers, while also attracting new ones.
Admission and acceptance of applications by customers, for the programmes offered under this alliance will also be available through ADCB’s SME centres and SME desks at branches across the UAE. Abu Dhabi Commercial Bank (ADCB) and Khalifa Fund for Enterprise Development entered into an exclusive and unique partnership to support SMEs across the UAE. The alliance has been created to jointly facilitate the mobilisation of funds to new and budding entrepreneurs and SMEs, for their growth and expansion plans. ADCB and Khalifa Fund Unique Alliace or Enterprise Development This agreement is the first of its kind between Khalifa Fund and financial institutions, for financing SMEs under the guarantee of Khalifa Fund. This agreement comes within the framework of the Fund’s efforts to provide various finance solutions capable of preserving the Fund’s resources and enhancing its ability to provide the necessary funds for supporting this vital economic sector.
The Khalifa Fund will become a full fledged partner on ADCB’s ‘SME Advisor- Middle East’ platform, which includes exclusive agreements with the SME Advisor magazine, as well as ground events, SME awards and summits. Among the awards will be a newly introduced award for excellence for Khalifa Fund supported entrepreneurs.
During the signing ceremony at ADCB headquarters, attended by H.E Eissa Al Suwaidi, Chairman ADCB, Mohamed Al Hameli, Vice Chairman, ADCB and a number of the board members and senior management, Ala’a Eraiqat, the CEO and Board Member of ADCB, said, “This partnership is unique and the first of its kind between a bank and the Khalifa Fund. We have developed the framework for the partnership drawing from global best practices and concepts that have been tested in the developed market.
After our sponsorship and participation in the Middle East SME Forum 2011, recently held in Abu Dhabi, comes this partnership, which brings together strategic vision of our two organisations to support the community and the economy, as a further testament to our commitment to support this dynamic sector. We truly believe that such alliance will bring value to the community and is in line with our strategy of focusing on our core businesses and geography.
The SME banking space is receiving increasing attention from all major players in the market. However, our presence in this segment for several years and revamped proposition backed by state-of-the-art products make us one of the strongest players in this segment. This is demonstrated by our portfolio of 26000 active SME clients and our lending portfolio of more than AED 2.50 billion in this segment,” he said.
ADCB will support the Khalifa Fund by setting up six ADCB – KF Centres at ADCB’s dedicated SME Centres in the UAE in Abu Dhabi, Dubai, Sharjah and Northern Emirates. ADCB is also committed to invest its own resources and share risk with the Khalifa Fund to make this alliance really meaningful. The expectation is to reach a portfolio size of AED 500 million in association with Khalifa Fund.
H.E. Dr. Ahmed Khalil Al Mutawa, CEO of Khalifa Fund said, “The Fund seeks to diversify its finance solutions for expanding its client’s base from UAE nationals benefiting from its services through the identification of new finance channels. In the last years, the Fund adopted the direct finance methodology, where about 367 projects with a finance value totalling to AED 600 million benefited from the four finance programmes. The indirect finance through guaranteeing finance loans shall on the other hand, relieve the pressure from the Funds’ financial resources and shall provide an opportunity to diversify and extend the Funds’ services to cover a broader segment of beneficiaries wishing to establish or expand their SMEs in the UAE,” added Al Mutawa.
Under the agreement, the Khalifa Fund shall consider and approve the applications and pass them to ADCB for the finalisation of the finance procedures after the submission of the 100% guarantee.
ADCB is also looking to support external programmes through institutes like INSEAD in areas of entrepreneurship for potential Khalifa Fund candidates.
The Khalifa Fund was launched on 3rd June 2007 to help develop local enterprises in Abu Dhabi, with a total capital investment of AED two billion. The Fund aims to create a new generation of Emirati entrepreneurs by instilling and enriching the culture of investment amongst young people, as well as supporting and developing small to medium-sized nvestments in the Emirate. The Khalifa Fund provides integrated and comprehensive programmes to meet the needs and requirements of investors seeking to establish or expand investments. In order to create a favourable nvestment environment and strengthen the capacity of entrepreneurs, the Fund has developed a system of support services for entrepreneurs. These nclude training, development, data and consulting services, in addition to a number of marketing- focused initiatives. Financing solutions are offered for viable projects, which help to feed the national economy. These financing programmes are Khutwa, Bedaya and Zeyada, which cover all project segments. In addition, there are a number of other initiatives such as Sougha for heritage handicrafts, Al Radda for correctional centre nmates and Ishraq , for those who have recovered from an addiction at the National Rehabilitation Centre. Amal is a Khalifa Fund initiative that aims to target special-needs Emiratis. About