ADCB and Khalifa Fund for Enterprise

23 October 2011

ADCB partners with the Khalifa Fund for Enterprise Development to service the UAE's growing SME market


Abu Dhabi, 23 October 2011:Abu Dhabi Commercial Bank ("ADCB") and Khalifa Fund for Enterprise Development ("Khalifa Fund") 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, existing Small Medium scale Enterprises for their growth and expansion plans.

ADCB and the Khalifa Fund will also 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.

This agreement is the first of its kind between Khalifa Fund for Enterprise Development 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 the Fund's 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 among Khalifa Fund supported entrepreneurs.

During the signing ceremony at ADCB headquarters, attended by H.E Eissa Al Suwaidi, the Chairman, Mohamed Al Hameli, the Vice Chairman and a number of the Board members and Senior Management, Ala'a Eraiqat, the CEO and Board Member at ADCB, said: "This partnership is unique and first of its kind between a Bank and 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 organizations 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.

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.

ADCB will support the Khalifa Fund by setting up six ADCB - KF Centres at our dedicated SME Centres in UAE in Abu Dhabi, Dubai, Sharjah and Northern Emirates. ADCB is also committed to invest its own resources and share risk with Khalifa Fund to make this alliance really meaningful. Our expectation is to reach a portfolio size of AED 500 million of advance 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 programs provided by the Fund, while indirect finance through guaranteeing finance loans shall relief 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, Khalifa Fund shall consider and approve the applications and pass them to ADCB for the finalization 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.