ABU DHABI, 17th January, 2021 (WAM)The Abu Dhabi Department of Finance (DoF) today announced an AED 6 billion supply chain financing initiative to support a variety of sectors, as a key initiative in its commitment to support small and medium enterprises (SMEs).

The first phase of this initiative is in partnership with the National Health Insurance Company (Daman) and First Abu Dhabi Bank (FAB), aiming to provide liquidity to SMEs in the healthcare sector.

Funded by Ghadan 21’s SME credit guarantee scheme, the initiative is a demonstration of Abu Dhabi’s significant commitment to sustain and support SMEs – throughout COVID-19 and beyond – and will initially support SMEs in the healthcare sector, before being extended to include other banks and sectors.

The initiative is of significant benefit to SMEs as it facilitates quick payment of their receivables, thus reducing their costs of working capital. In 2019, SMEs in Abu Dhabi accounted for 29% of GDP and 44% of the nonoil economy –supporting such businesses is a critical element of Abu Dhabi’s diversification strategy to move towards a knowledge-based economy.

Commenting on the announcement, Jassem Mohammed Bu Ataba AlZaabi, Chairman of the Abu Dhabi Department of Finance, said: 'SMEs are the lifeblood of the economy, and key to long-term sustainable growth for the Emirate of Abu Dhabi. As part of our forward-looking fiscal sustainability strategy, we are proactively launching this initiative in order to underpin continued liquidity for SMEs in Abu Dhabi. On behalf of the Department of Finance, I would like to thank our partners Daman and FAB for participating in this initiative and I am confident that our aligned vision will ensure its success.'

Hamad Al Mehyas, Chief Executive Officer, Daman, stated: 'The UAE has made remarkable strides as a leading nation in the global healthcare landscape. This would not be possible without the vital contributions of the many important SMEs within the healthcare sector. We are pleased to partner with the Department of Finance and FAB to ensure business continuity and liquidity for those committed to protecting the health and safety of Abu Dhabi citizens and residents. I am confident that this scheme will significantly contribute to sustaining and promoting our world-class healthcare sector in the Emirate.'

André Sayegh, Group Chief Executive Officer, FAB said: 'FAB is fully committed to the economic objectives of Abu Dhabi, including supporting the ongoing development of a world leading healthcare ecosystem within the Emirate. This initiative will provide SMEs in the Emirate with the necessary liquidity to continue their sustainable growth while maintaining healthcare supply chains throughout the COVID-19 pandemic response and beyond. We are proud to partner with the Department of Finance and Daman to further strengthen the support for SMEs within the healthcare sector at a vital time.'

wam