RAKBANK Injects AED 2 Billion in Credit to Shield UAE SMEs
RAKBANK has launched an AED 2 billion credit expansion and targeted relief programme to shield UAE SMEs from economic volatility. The move provides working capital, trade finance, term loans, and secured lending to both new and existing businesses. The bank has also authorised payment deferrals to ease strained cash cycles. According to a press release shared by the bank, relief has been granted to roughly 1,700 trade and working capital clients holding AED 2.2 billion in total limits, as well as 2,320 retail business customers with outstanding balances of AED 680 million.
This follows a highly active first quarter in which the bank disbursed AED 1.4 billion in loans and onboarded over 4,100 entrepreneurs. This private-sector capitalisation reflects a broader effort across the emirate to stabilise the SME ecosystem amid regional uncertainty.
Over the past two months, institutions such as Emirates NBD and Emirates Development Bank (EDB) have ramped up capital injections, expanded guarantee programs, and reduced trade finance fees to sustain local operations. RAKBANK is participating in this collaborative approach by leveraging established credit guarantee schemes, in partnership with Dubai SME and EDB, to underwrite micro-enterprise loans.
Vishal Shah, RAKBANK’s Managing Director and Head of Business Banking, noted that keeping credit flowing remains a top priority. "SMEs are the backbone of the UAE economy, and our role is to stand with them, especially in uncertain times," Shah said.
Operationally, the bank has waived fees on domestic transfers, introduced cashback for foreign exchange transactions, and is offering up to 2% interest on business balances. Utilising enhanced digital capabilities, corporate accounts can now be opened within 48 hours.
Rather than a corporate milestone, the broader banking sector's intervention is essential for the UAE economy. SMEs currently account for more than 60% of the nation’s non-oil GDP, making their survival vital to the government's long-term economic diversification strategy.
As shifting global trade flows continue to test market resilience, the strict alignment of commercial banks with the UAE Central Bank’s continuity priorities will likely dictate how effectively the local SME sector weathers the current turbulence