Dubai's Noor Islamic Bank has launched an innovative Shari’a compliant banking service specifically tailored for SMEs that contribute significantly to the UAE’s trade flows.

The first dedicated Noor Trade branch has started operations in Almas Tower, home of the Dubai Multi Commodities Centre (DMCC). A second similar branch is scheduled to open in Deira in July, a statement said.

Hussain AlQemzi, GCEO of Noor Investment Group and CEO of Noor Islamic Bank said: “We are seeing significant growth in the SME sector as the UAE economy continues to strengthen and SMEs’ appetite for risk increases.

“We intend to be a significant player in the SME and trade markets. We are committed to supporting government initiatives aimed at boosting business in the country and we are confident that Noor Trade will add a new dimension to the macro environment in which SMEs operate, thereby benefiting the national economy as a whole.”

Under the Noor Trade brand, clients will have access to fully Shari’a compliant financial services, including cash management, trade, and working capital solutions, along with consumer, treasury and takaful products packaged at preferential rates based on eligibility criteria.

Ehsaan Ahmed, Global Transaction Services and SME Head, at Noor, said: “By establishing dedicated trade branches we will be able to decentralise our service delivery and be closer to the customer. Both the DMCC and Deira branches will be easily accessible by the vibrant SME community, and position Noor to better respond to their growing needs for Shari’a compliant banking solutions.”

SMEs make up 95 per cent of all businesses in Dubai; employ 42 per cent of the emirate’s workforce and account for 60 per cent of the UAE’s GDP.

According to one study, the local SME market will require more than Dh6 billion ($1.63 billion) of credit in 2013. That figure is forecast to increase by 5 to 10 per cent in 2014, if the UAE economy continues to grow at its current rate. – TradeArabia News Service