FGB, one of the leading banks in the UAE, has said that it has become the first bank in the country to offer a one-stop financing solution for UAE start-ups.
The bank's new Start-up Proposition offers new businesses a range of financial solutions from business current accounts and business credit cards, to start-up loans, overdrafts and trade/working capital facilities, with no collateral required.
The start-up package is designed to support new businesses in the initial stages of their business venture. New businesses can access a 'no minimum balance' current account and Platinum Visa business credit card in the first six months of operation, along with an overdraft or a start-up loan after six months. Business ventures within the first 18 to 24 months of operation have a combination of cash loans and trade facilities available to them.
There are over 350,000 SMEs operating within the UAE, which represent almost 92 percent of the total number of UAE companies and provide more than 86 percent of jobs in the private sector. They also account for over 60 percent of the country's GDP, but only around 4 percent of total lending in the country. Facilitating access to finance for SMEs is considered essential for fostering economic growth in the UAE and supporting these businesses is currently a top priority for both the government and business community.
Hana Al Rostamani, Head of Consumer Banking at FGB, said, "Starting any new business requires funding, however SMEs often find it difficult to access the financial support they need to get up and running, and start operating efficiently. With the launch of our new Start-up Proposition, we want to meet businesses' immediate requirements and cater to their needs at each stage, without collaterals required. As part of our efforts to further develop the SME segment in the UAE, we're looking to build long-term partnerships with local businesses and support them throughout their business journey."