The Emirates Development Bank (EDB) said it has become the first fully-owned federal institution to receive a AA- rating from Fitch, thus indicating the Emirati group's financial position and credit strength.

The Emirati group's loan portfolio exceeds Dh1 billion ($272 million), said a statement from EDB.

The board of directors had approved the launch of the Dh50 million "Start-Ups Finance" programme, which aims to provide UAE entrepreneurs with the necessary financing to build and develop their businesses, supporting the entrepreneurship sector and emerging companies, and enhancing the contribution of the private sector to economic development in the UAE.

As per the deal, the bank will provide SME financing to emerging businesses of at least 51 per cent Emirati ownership by offering flexible loans up to Dh2 million with competitive rates.

This programme is a pioneering step to address the challenges of obtaining bank credit to finance projects, enhancing the investment market, improving the business environment and boosting the country's rating in the credit access index, he noted.

During the meeting, which was held under the chairmanship of Obaid bin Humaid Al Tayer, Minister of State for Financial Affairs and Chairman of the EDB Board of Directors, the governing body discussed the items on the agenda and made a number of important decisions.

The financial statement for the first half showed that the bank has accomplished a number of operational and regulatory achievements during this period, which will contribute to improving the financial performance and growth of the bank's loan portfolio in the coming years.

Al Tayer expressed his pride in the bank's attainment of this outstanding credit rating, calling it recognition of the great efforts exerted to achieve the best results, and motivation to continue to implement the Bank’s strategic plans in line with the UAE's national agenda and Vision 2021.

"We are confident that this programme will help to enable companies and projects owned and managed by Emiratis to receive financing support and banking solutions with the aim of increasing competitiveness and facilitating business, which will further the growth of the SME sector, a key pillar of the national economy," he added.-TradeArabia News Service