RAKBANK Expands SME Financing with AED 2 Billion Amid Tighter UAE Conditions
RAKBANK has announced a new set of measures aimed at supporting small and medium-sized enterprises (SMEs) across the UAE as businesses face tighter market conditions, cash flow pressure and ongoing global uncertainty. The bank said its response is designed to keep credit flowing, strengthen business resilience and support growth in a challenging operating environment.
The lender, which says it has supported SMEs for more than five decades and served more than 250,000 businesses in the UAE, described SME banking as a core part of its strategy. RAKBANK added that it is taking proactive steps to help companies navigate shifting trade conditions and financial stress.
AED 2 Billion in Additional Credit Support
As part of the initiative, RAKBANK has allocated around AED 2 billion in additional credit limits for both existing and new customers. The financing covers secured lending, term loans, trade finance and working capital solutions, providing SMEs with a broader range of options to manage day-to-day operations and longer-term business needs.
The bank also introduced targeted relief measures for customers experiencing short-term financial pressure. According to RAKBANK, around 1,700 trade and working capital customers, with total limits of AED 2.2 billion, have received payment deferrals. In addition, 2,320 retail business lending customers with outstanding balances of AED 680 million have also been granted relief.
Support Through Guarantee Schemes and Digital Tools
RAKBANK said it continues to make use of credit guarantee schemes in partnership with Emirates Development Bank and Dubai SME. These arrangements are intended to support lending to micro and small enterprises across trade, working capital and term loan facilities.
Beyond financing, the bank highlighted a range of SME-focused services. These include up to 2% per annum interest on account balances, waived fees on domestic transfers and cashback on foreign exchange transactions. RAKBANK also pointed to its digital capabilities, including QR code payments and a fully digital onboarding process that enables account opening within 48 hours.
Management Commentary
Vishal Shah, Managing Director and Head of Business Banking Group at RAKBANK, said the bank sees SMEs as essential to the UAE economy and intends to stand behind them during uncertain periods.
“SMEs are the backbone of the UAE economy, and our role is to stand with them, especially in uncertain times. We are keeping credit flowing, providing relief where needed and making it easier for businesses to operate and grow,” Shah said.
Industry Analysis
RAKBANK’s move reflects broader pressure on SMEs in the UAE, where tighter business conditions can quickly affect liquidity, trade activity and repayment capacity. By combining additional credit, payment deferrals and digital banking tools, the bank is positioning itself to support both immediate financial stability and longer-term business continuity.
The announcement also highlights the growing role of banks in SME ecosystem support, particularly through partnerships with development institutions and guarantee programmes. For SMEs, such measures may help bridge financing gaps at a time when access to flexible credit remains critical.
Featured image credit: RAKBANK press release
