Press Release: MBRF-Beehive partnership – 1st business funded

MBRF-Beehive partnership enables Dubai-based trading firm secure competitive financing

  • Babysouk granted funds for growth at 8.92% profit rate
  • First enterprise to benefit from recently launched peer to peer finance partnership

 

Dubai, 25 July 2017: An innovative model of SME financing has taken off in Dubai with the Mohammed Bin Rashid Fund (MBRF), the financial arm of Dubai SME, the agency of Dubai Economy mandated to develop the small and medium enterprise (SME) sector, acting as guarantor to an SME for a loan of AED 500,000 from Beehive, the first and only regulated peer to peer finance platform providing online financing solutions.

The loan marks the first such deal concluded under a partnership launched recently by MBRF and Beehive to enable SME owners to obtain loans for development and expansion at competitive rates through the Beehive Group Finance Platform.

Babysouk, the first beneficiary of the partnership, has secured the Murabaha amortised loan for a 24-month period at an 8.92% profit rate, the lowest to date on the Beehive portal. Conventional financing options like bank loans would have involved a profit-rate commitment of 18-22% as against an average 12% on Beehive. The rate was further lower for Babysouk, courtesy of MBRF guarantee.

“It’s indeed a great start for everyone involved – MBRF, Beehive and Babysouk – as it sets a new development template in the SME ecosystem in the UAE. We are delighted to see the advantages we sought to bring to entrepreneurs through our partnership with Beehive translating into such immediate and tangible outcomes,” commented Abdul Baset Al Janahi, CEO of Dubai SME.

“More and more entrepreneurs are realising the benefits of the Beehive peer to peer financing option and adopting this model will strengthen Dubai’s knowledge economy initiatives and Smart City vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum”, Al Janahi said.

Saeed Matar Al Marri, Deputy CEO of Dubai SME, added: “The MBRF-Beehive partnership brings on stream an innovative and competitive service model built on smart technology and customer happiness, while providing new impetus to SME growth and entrepreneurial creativity. The partnership thus represents the touchpoints of the Dubai Plan 2021.”

Shatha Alhashmi, owner of Babysouk, said “The Beehive portal has provided a flexible, convenient and innovative alternative to aspiring entrepreneurs seeking funds for growth and expansion. MBRF deserves praise for using its resources and knowledge to design and implement a hassle-free yet competitive financing solution for enterprise growth.”

Craig Moore, Beehive Founder and CEO added “It’s great to see the first business in our partnership with MBRF close out so successfully. Investors are keen to support exciting young local businesses like Babysouk, and Beehive gives them the opportunity to invest in such innovative entrepreneurs emerging in the region.”

The agreement with Beehive provides for a credit guarantee of up to AED 500,000 on SME financing for a period up to 36 months with the Fund acting as the guarantor. SMEs will be able to utilise the funds thus secured to pursue sustainable growth and expansion.

MBRF will monitor the commitment of project owners who receive its support to the standards and controls set by the Fund. The MBRF team conducts field visits and the performance of projects to which a credit guarantee is provided will also be reviewed regularly to ensure adherence to the original project plan.

-End-

 

About Dubai SME

Dubai SME, an agency of the Department of Economic Development (DED), Government of Dubai, aims to foster an entrepreneurial culture and develop a competitive SME sector for the Emirate of Dubai. The key strategies adopted by Dubai SME are: advocate a pro-business environment for developing entrepreneurship and SMEs, seed innovative start-ups and groom promising SMEs.  Dubai SME’s vision is to make Dubai the centre for innovative SMEs to start, grow and expand their businesses, thus adding greater value to the economy of Dubai.

For further information, please contact:

Faisal Shamsudheen, Government Communication Division

Tel: (971 4) 455 5927

Email: faisal.pathiasseri@dubaided.gov.ae

 

About Beehive:

Beehive is the region’s first and only regulated peer to peer finance platform. We apply the innovative technology of crowdfunding, connecting a business seeking funding with a crowd of investors, to eliminate the cost and complexity of conventional finance. The result is a more efficient, streamlined process that gives UAE businesses faster access to lower cost finance and investors better returns on their money.

 

Beehive enquiries:

General enquiries, please contact team@beehive.ae or call +971 (0)4 550 6700

Media enquiries, please contact marketing@beehive.ae