Emirates Development Bank (EDB) and RAKBANK have launched a co-financing partnership totaling AED 1 billion ($272 million) to catalyze growth in national priority sectors.
The landmark initiative was unveiled at the Make it in the Emirates Forum, held under the patronage of the Ministry of Industry and Advanced Technology (MoIAT) until 22 May at the ADNEC Centre, Abu Dhabi.
This strategic collaboration marks one of the largest mSME-dedicated co-lending programs of its kind in the region, designed to improve access to capital for businesses operating in manufacturing, advanced technology, food security, renewables, and healthcare, the UAE’s most critical growth sectors.
Backed by a 50/50 contribution, AED 500 million ($136 million) each from EDB and RAKBANK, the fund will be channeled through RAKBANK to deliver tailored financing solutions for mSMEs across the UAE, with a strong focus on supporting businesses in the Northern Emirates and greenfield ventures.
H.E. Ahmed Mohamed Al Naqbi CEO – EDB
“This partnership with RAKBANK is a powerful example of what Make it in the Emirates was designed to achieve, coordinated national action that turns industrial ambition into reality. At EDB, we’ve committed more than AED 18.8 billion ($5 billion) in financing since 2021 to accelerate economic transformation, and we know from experience that unlocking mSME growth is one of the most effective ways to strengthen our industrial base. This AED 1 billion ($272 million) co-financing platform is a signal that we are serious about empowering the entrepreneurs and manufacturers who will lead our economy into its next chapter.”
Raheel Ahmed, Group CEO of RAKBANK, stated that, “At RAKBANK, we have always believed that mSMEs are the backbone of the UAE economy. This partnership fund is a bold step forward in our commitment to serve them better. By joining forces with Emirates Development Bank, we’re not just unlocking capital, we’re creating real opportunities for entrepreneurs to grow, scale, and contribute to a more dynamic and sustainable national economy.”
The co-financing structure gives mSMEs access to liquidity at competitive rates and also sets clear impact benchmarks, including percentage allocation for businesses based in the Northern Emirates (RAK, UAQ, Fujairah), national-owned businesses and prioritization for manufacturing and greenfield ventures.
The agreement reflects a broader effort by both institutions to deepen mSME support, foster economic diversification, and align with the UAE’s industrial strategy and national development goals. The fund will be deployed within 12 months of the agreement, with RAKBANK overseeing risk underwriting and portfolio management, while providing monthly performance reports to EDB. Both institutions will collaborate on outreach, awareness, and stakeholder engagement to maximize visibility and impact.
Through this initiative, EDB and RAKBANK are setting a new benchmark for public-private sector partnership, partnering to fuel innovation, job creation, and long-term value across the SME landscape.
