Dubai SME Expands Agreement With Finance Solutions Provider ‘Beehive’
The Mohammed bin Rashid Fund (MBRF) for SME – the financial arm of Dubai SME, itself an affiliate of Dubai’s Department of Economic Development (DED) – has expanded the partnership agreement with Beehive, the MENA region’s first regulated peer-to-peer lending platform, which will cross the $50 million mark of total funding for SMEs across the platform this month.
Following a successful initial launch, MBRF and Beehive have broadened the scope of the agreement to increase the credit guarantee to AED750k and also offer Sharia Compliant Invoice Finance, a short-term finance option for businesses wishing to improve cash flow.
The MoU seeks to support entrepreneurial projects in Dubai, owned and operated by Emirati nationals, by facilitating commercial loans for business purposes, such as financing invoices and purchase orders. Signed by His Excellency Abdul Baset Al Janahi, CEO of Dubai SME, and Craig Moore, Founder and CEO of Beehive, the agreement marks the second phase of the partnership between the two parties to offer entrepreneurs best-in-class financing services through Beehive’s crowdfunding platform.
H.E. Al Janahi said: “The agreement embodies Dubai SME’s commitment to supporting Emirati entrepreneurs by providing them with superlative business solutions and empowering them to meet the rapidly changing demands of the business environment and various sectors. This, in turn, helps ensure growth and improve competitiveness of the SME sector, where financing is a major factor.”
“The expansion of the agreement adds to our solid and consistent partnership with Beehive, which seeks to offer efficient and seamless access to modern financing solutions, thus resonating with our 2021 strategy to encourage innovation, establish an entrepreneurial culture in Dubai, and support the city’s smart transformation,” H.E. added.
“Following the successful launch of our partnership, we’re excited to be entering the second phase of our agreement with MBRF. The new scope of our alliance will provide even greater opportunities to support local entrepreneurs with affordable, accessible finance and help drive the growth of the wider SME ecosystem” Craig Moore commented.
Under the agreement, Beehive pledges to examine SME projects for feasibility and facilitate loans through its digital platform. Dubai SME, for its part, will offer guarantees for loans provided by Beehive to companies owned by Emirati nationals, according to the terms and conditions agreed-upon between the two parties. Also under the agreement, Beehive will offer participating SMEs a 25% discount on the process of preparing the corporate classification system on a financial or non-financial basis.
The Mohammed bin Rashid Fund for SME launched the initial partnership agreement with Beehive in mid-2017 to provide support for small and medium enterprises, particularly in terms of negotiating favourable interest rates and reducing wait periods for loans. The objective was to assist SMEs as they develop and expand, which ultimately helps the entire SME sector in the Emirate of Dubai.
Department of Economic Development
The Department of Economic Development (DED) is the government body entrusted to set and drive the economic agenda of the emirate of Dubai, UAE. The DED supports the structural transformation of Dubai into a diversified, innovative service-based economy that aims to improve the business environment and accelerate productivity growth.