The Emirates Development Bank (EDB), in a strategic partnership with ADGM-regulated financing platform Zelo, has launched a new AED 350 million financing programme. The initiative is designed to accelerate payments for SMEs holding approved invoices from Government and Government-Related Entities (GREs), directly addressing critical working capital challenges.
Quick Facts
- AED 350 million financing programme launched.
- Up to 95% of invoice value paid in 24 hours.
- Targets SMEs with government and GRE contracts.
Tackling SME Working Capital Gaps
For many small and medium-sized enterprises in the UAE, long payment cycles on government contracts can create significant cash flow constraints, limiting their ability to scale and take on larger projects. This new programme tackles that issue head-on by providing SMEs access to up to 95 percent of an approved invoice’s value within 24 hours.
Delivered through EDB 360, the bank’s digital platform, the solution offers a streamlined process for securing invoice financing.
Ahmed Mohamed Al Naqbi, Chief Executive Officer of Emirates Development Bank, said, “Strengthening SME liquidity is essential to building a more resilient and competitive industrial ecosystem. Through this programme, we are enabling businesses to bridge working capital gaps, take on larger contracts, and integrate more effectively into national supply chains.”
A New Benchmark for Supply Chain Finance
The collaboration embeds financing directly into procurement cycles, creating a more stable and predictable financial environment for SME suppliers. By ensuring a steady flow of liquidity, the programme helps reduce payment delays that can hinder project delivery and allows businesses to operate with greater efficiency.
This partnership aims to set a new standard for supply chain finance in the region by improving SME participation in major national projects.
Dhanush Arjun, Chief Executive Officer of Zelo, commented, “This partnership reflects Zelo’s mission to make working capital simple, fast, and reliable for the SMEs that power the UAE’s industrial economy. Combined with EDB’s commitment to SME enablement, this collaboration sets a new benchmark for supply chain finance in the region.”
Powering Operation 300bn
The initiative is a direct contributor to the UAE’s industrial strategy, Operation 300bn. The national strategy aims to increase the industrial sector’s contribution to the GDP from AED 133 billion to AED 300 billion by 2031.
By strengthening the financial health of SMEs, which form the backbone of the industrial supply chain, this financing programme helps bolster local value chains and supports the country’s long-term goals for industrial expansion and economic diversification.
About Emirates Development Bank
Emirates Development Bank (EDB) is a key financial engine for the economic development and industrial advancement of the UAE. The bank provides financial and non-financial support to businesses of all sizes, with a special focus on SMEs and strategic priority sectors including manufacturing, advanced technology, healthcare, and food security.
Source: Zawya
