Tuesday 25, July 2017 by William Mullally

MBRF-Beehive partnership empowers Dubai-based trading firm

 

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.

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 Murabahah amortised loan for a 24-month period at an 8.92 per cent 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 per cent as against an average 12 per cent 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 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.”

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