DIB reiterates support for Mohammed bin Rashid Est. members at Franchising ME Expo

'The SME and Franchise sectors are crucial to the growth of a national economy and contribute towards a large percentage of the nation's GDP. While the private sector is playing an important role in the economic growth of the country, we believe that there is an inherent need for greater participation from young UAE nationals,' said Saad Abdul Razak, Executive VP for Retail and Corporate Banking, DIB. 'DIB is seeking to encourage the entrepreneurial spirit among young UAE nationals by offering them focused financing support and thereby facilitate them in setting up their own businesses,' he added.

DIB's support for the members of the Mohammed bin Rashid Establishment for Young Business Leaders includes providing the necessary capital for new business start-ups, in the form of cash and trade finance with low profit rates. DIB has announced earlier that that 10 percent of its total annual purchase requirements for its projects and services would be directed to businesses registered under the establishment.

'Generating finance to set up new businesses especially in the small and medium size sector, has always been challenging for young businessmen because of the high risk associated with these projects,' said Mr. Fahd bin Fahd, Senior Manager, Risk Management Department, DIB. 'DIB aims to use its capabilities and wide network to support these projects, in order to boost the growth and entrepreneurial activity in the country. We are offering specific support to the real estate segment by giving a special rate for leasing properties owned by the bank,' he added.

Potential applicants can approach DIB after the Mohammed bin Rashid Establishment has evaluated their feasibility studies and estimated their exact financing requirements, with a maximum of one million dirhams. The bank provides an integrated solution whereby applicants can expect a response to their business proposals within three days. The repayment scheme provides for easy instalments covering five years with a grace period, which extends to the beginning of the third year. The bank also offers special rates on banking service fees such as bank guarantees, murabaha and letter of credits in addition to special rates on foreign currency exchange.

The Mohammed Bin Rashid Establishment for Young Business Leaders is currently organising the Franchising Middle East Exhibition at the World Trade Centre in a new initiative to spur economic growth and encourage young UAE nationals to participate in the national economy. The exhibition encourages the growth and development of the franchise sector in the Middle East by promoting it as one of the fastest growing economic sectors that offers one of the biggest sources of new business and employment opportunities. According to estimates 15 direct or indirect jobs are created by each new franchise.

The exhibition, organised by the Mohammed bin Rashid Establishment for Young Business Leaders, concludes tomorrow.