Emirates Development Bank (EDB) launched a AED100mn ‘Credit Guarantee Scheme’ for SMEs in the UAE. The new facility supports the goals of the National Agenda under UAE Vision 2021, which focuses on boosting the contribution of SMEs to the country’s economy to 70% of GDP by 2021, the lender said in a statement on Monday. The new scheme, launched in coordination with partner banks and the UAE Banks Federation (UBF), will provide a credit guarantee to partner banks in the Emirates, guaranteeing the loan amount up to 85% to banks which can offer up to AED2mn financing to startups. EDB will also offer up to AED5mn financing to existing SMEs where it guarantees up to 70% of their loan amount. EDB signed agreements with Commercial Bank of Dubai, RAKBank, Mashreq Bank, Al Masraf, National Bank of Fujairah and Commercial Bank International. There are plans to further expand the partnership portfolio with additional banks in the coming months.