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Dubai’s Top Fund For SMEs Embraces Peer-To-Peer Lending

 

The Mohammed bin Rashid Fund (MBRF) and peer-to-peer lending platform Beehive have formed a pact to facilitate financing to small and medium-sized enterprises (SMEs).

MBRF is the financial arm of Dubai SME, an agency of Dubai Economy mandated to develop the SME sector while Beehive provides online financing solutions for SMEs.

The pact will enable SME owners in Dubai to obtain loans for development and expansion through the Beehive Group Finance Platform.

As per the pact, each selected SMEs will be given loans worth up to Dhs500,000 for a tenure of 36 months.

The pact provides investors with the opportunity to achieve better returns by financing a qualified group of SMEs, said Abdul Basset Al Janahi, CEO of Dubai SME.

The deal was an opportunity for UAE nationals who own SMEs to get accustomed to modern financial technologies, fintech, and leverage the concepts of crowdfunding and peer-to-peer financing without depending on banks or other financial institutions, he added.

Peer-to-peer finance is growing rapidly and is estimated to deliver $300 billion globally by 2020, said Craig Moore, Founder and CEO of Beehive.

MBRF will monitor the commitment of project owners who receive its support, a statement said, and an MBRF team will also conduct field visits to review the performance of projects.

 

 

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