Dubai First launches the first flexible interest business credit card in the region

Launched in association with Visa International, the Business Credit Card from Dubai First fills a gap in the current ecology for financial services by providing flexible financing options for SMEs.

It is in line with the stated aims of the Government of Dubai which has repeatedly highlighted the role of the SME sector as an engine for the growth of the economy.

A recent analysis of customer needs conducted by Dubai First in the SME category underscored the critical importance of financial flexibility in adapting to the rapidly changing business arena in which most small and medium sized businesses operate.

The Business Credit Card from Dubai First is the first card in the region to offer complete financial flexibility on three critical fronts: a flexible interest rate mechanism that offers the potential of the lowest interest rates in the industry -as low as 1.33% per month; a flexible rewards program that lets customers redeem their points for cash, business services like free car rentals or for leisure, as well as the possibility of using the card at merchants where cards are not accepted - through its dial a draft facility.

All of this is packaged in the generic flexibility offered by a card product i.e. finance offered when needed, without the crushing commitment of a loan.

The Business Credit Card from Dubai First is equipped with several other features and benefits such as a dedicated personal account manager, special discounts and privileges, discounts on UAE Gate Card, business secure insurance as well as information support through MIS expense reports to help keep track of expenditure.

The Flexible Interest Rate mechanism on the card is adjusted in a two-phased process.

A special low interest rate is charged in the first three months (quarter) of the Business Card membership.

At the end of the quarter, the Business Card system measures the performance of the account based on monthly expenditure, repayment percentage and promptness of repayment.

Depending on the performance of the account on these parameters, a pre-defined interest rate value is calculated and levied on the outstanding balances for the next quarter.

The card allows customers to achieve an annual percentage rate as low as 1.33% per month which is the lowest rate in this category.

Ravi Bhardwaj, Country Head, Dubai First UAE, said: "As a consumer finance company, we are focused on providing an entire range of financing solutions for our customers, particularly in our card business. We believe there is a huge potential to engineer segmented offerings where we see enough critical mass to drive specific value.

"There are around 200,000 SMEs in Dubai, Abu Dhabi and Sharjah, which for us translates to 200,000 potential customers with unmet needs. Through the launch of the Business Credit Card, we are contributing to the growth of the UAE economy by providing support to small and medium enterprises, offering them an innovative and flexible card that is responsive to their individual needs."

"Visa understands the importance of SMEs and their contribution to the economic fabric of the UAE. While we are committed to supporting businesses in the region, we recognise that every market is different. Visa has partnered with Dubai First to come up with an innovative product offering that adds value to SMEs in the UAE and helps them achieve their business goals," said Kamran Siddiqi, General Manager of MENA region of Visa Inc.

The small and medium enterprises segment is an important component of the Middle East economy, fuelling the national GDP.

In the UAE alone, small and medium enterprises represent more than 60% of total businesses in the country.

Small and medium sized enterprises are generally active in key sectors such as trade, construction, tourism, facility management, manufacturing, and professional services. Globally, spend by SMEs on business goods and services has been growing at an average rate of 14% annually, with an estimated spend of $4.2 trillion in 2006.

The latest card from Dubai First is accepted at more than 22 million worldwide locations that bear the Visa brand mark.

Since its inception in 2007, Dubai First has successfully launched several ground-breaking products such as the Royale Card, the Cash Back Credit Card and QuickCash Personal Loans leading the consumer finance sector in the UAE to higher standards.

Dubai First aims to be a market leader in consumer finance in the region. From credit card to personal loans, the company seeks to extend financing solutions for consumers and businesses alike.

Dubai First's vision is aligned with Dubai Group, its parent company, which has evolved as a forerunner in the development of Dubai's financial industry.