Dubai based peer to peer lender Beehive has signed a memorandum of understanding (MOU) with the Mohammad Bin Rashid Fund (MBRF), part of the Dubai Ministry of Finance. The collaboration will see MBRF act as the guarantor for credit of up to Dh500,000 for SME loans originated on the Beehive platform.
Abdul Baset Al Janahi, CEO of Dubai SME, commented on the MOU;
“The agreement with Beehive addresses the need for modern SME financing options that can compete with conventional channels and excel in terms of efficiency and cost. It’s an opportunity for UAE nationals who own SMEs to get accustomed to modern financial technologies, Fintech, and leverage the concepts of crowd funding and peer-to-peer financing without depending on banks or other financial institutions.”
MBRF said it will monitor the commitment of project owners who receive its support.
Craig Moore, founder and CEO of Beehive said he expects the platform to originate $300 million worldwide by 2020.
Beehive was the first peer to peer lending platform to be regulated in the MENA region. Beehive is officially authorised and regulated by the Dubai Financial Services Authority (DFSA). Beehive was launched in Dubai in 2014 by Moore with the assistance of Rick Pudner, former Group CEO of Emirates NBD.