Sunday, June 16, 2024
ReportBeehive – from taking baby steps to soaring high

Beehive – from taking baby steps to soaring high

Dubai’s first regulated peer-to-peer lender has extended an Islamic finance facility to an e-commerce firm – a facility guaranteed by the financial arm of Dubai SME.

Recall that in June, IFN Fintech had reported on the partnership between the Mohammed Bin Rashid Fund (MBRF) – the financial arm of Dubai SME – and P2P lender Beehive through which both entities will facilitate SME financing to Dubai entrepreneurs. Now a month later, the collaboration has realized its first deal –a Murabahah amortized financing for a four-month period at an 8.92% profit rate extended to Babysouk, an online baby and toddler store.

The profit rate is the lowest to-date on the Beehive portal; conventional financing options (bank loans) would have involved a profit rate commitment of 8-22% as against the 12% average on Beehive, noted Dubai SME.

“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,” said Abdul Based Al Janahi, CEO of Dubai SME.

Under the MBRF-Beehive agreement, borrowers would be given a credit guarantee of up to AED500,000 (US$136,095) for up to 36 months with the fund acting as the guarantor. MBRF will monitor the commitment of project owners who receive its support to the standards and controls set by the fund.



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