Numou, an SME growth platform managed by ADGM, has partnered with Abhi, a regional digital banking provider focusing on Embedded Finance and working capital solutions.

Increasing Access to Financing for SMEs

This collaboration aims to enhance financial access for small and medium-sized enterprises (SMEs) in the region by streamlining the process of obtaining short-term liquidity.

The partnership integrates Abhi’s digital lending technology into Numou’s ecosystem, facilitating quicker credit evaluations and more efficient loan distributions. Consequently, SMEs using Numou are anticipated to expedite invoice payments, thus alleviating cash-flow issues that can impede business operations and growth.

Addressing Financing Gaps in the UAE and MENA

The agreement focuses on addressing structural financing deficiencies impacting SMEs in the UAE and broader Middle East. According to regional economic statistics, SMEs constitute over 90% of registered businesses in the Gulf Cooperation Council (GCC) countries and are estimated to contribute around 30% to GDP in key markets.

However, despite their significant economic role, SME lending in the GCC stands at merely 3%, with an approximated credit gap of USD 250 billion. Extended invoice payment periods further strain liquidity, often extending settlement times beyond 60 days.

The integration of automated lending and assessment tools into Numou’s platform is expected to cut processing times for working-capital requests by up to 70%, based on comparable implementations in digital finance ecosystems. This model is tailored to support businesses operating in sectors prone to cash-flow fluctuations, such as construction, professional services, logistics, and retail.

Supporting National Diversification Strategies

The initiative aims to bolster national diversification plans. In the UAE, SME growth is a pivotal element of long-term economic strategies, with government objectives setting targets for SMEs to contribute 60% of non-oil GDP. Improved financial accessibility is viewed as essential for sustainable business growth, especially among smaller enterprises scaling their operations or entering new markets.

Initial forecasts suggest that the partnership between Numou and Abhi could help more SMEs access working capital previously out of reach via traditional financing channels.