Ajman Free Zone Signs MoU with RAKBANK to Support SMEs

The UAE’s National Bank of Ras Al Khaimah (RAKBANK) has signed a memorandum of understanding (MoU) with Ajman Free Zone to finance startups, small and medium-sized enterprises (SMEs), and other companies based within the free trade zone.

The MoU stipulates that RAKBANK will offer financial services including loans, credit facilities, and direct access to account openings in order to meet the needs of SMEs’, whose influx into the free trade zone is ongoing.

In 2020, the Ajman Free Zone registered 1,717 new businesses, a 23% increase compared to 2019. The free zone attracted companies and investments in key sectors such as food and beverages (F&B), health and cosmetics, jewellery, textile, paper and packaging, agriculture, automobiles, construction, oil and gas, and chemical industries.

RAKBANK will also offer specific business loans, point of sale (POS) financing, term and working capital financing, real estate financing, asset-based financing, and cash management services to startups operating within the free zone.

Furthermore, the bank’s RAKstarter account, business current account, as well as priority service banking at “preferential pricing” for RAKelite business is among the products being offered.

Ali AlSuwaidi, Director General of the Ajman Free Zone, recognised the contributions of SMEs in the region, stating that they “play a significant role in driving social and economic development of the country and [the free zone] is committed to supporting through strategic partnerships that facilitate their business operations.”

“Through this MOU,” he continued, “we hope to bring key incentives and affordable financing solutions to the Ajman Free Zone business community.”