Abu Dhabi's Masdar City and Mashreq Bank are teaming up to provide financial services to start-ups and small and medium enterprises operating out of the free zone.
All businesses based in Masdar City will now have “easy access” to NeoBiz, Mashreq's digital banking platform designed specifically for start-ups and SMEs, the companies said.
“Masdar City is currently home to more than 1,000 companies, including a wide range of innovation-focused SMEs and start-ups,” said Abdulla Balalaa, executive director of Masdar City.
“The city is Abu Dhabi’s only planned and approved R&D [research and development] cluster, and to businesses, we offer a unique ecosystem of education, R&D, and innovation, that not only allows them to develop and thrive, but also supports Abu Dhabi’s position as a world-leading business destination.”
Masdar City offers business services such as registration and access to benefits such as 100 per cent foreign ownership, zero import tariffs, a reduced tax footprint, access to R&D partnerships, dual licensing and the option to repatriate capital and profits.
Last year, it also introduced new business packages with licence fees ranging between Dh1,000 ($272.29) and Dh12,000 to attract more companies.
It also signed a financing deal worth $200 million with First Abu Dhabi Bank to help the free zone acquire more properties through its Green Real Estate Investment Trust.
The proceeds from the transaction will assist Masdar City in bringing more sustainable assets to the market through new developments while expanding its size, it said.
In January, Masdar City also partnered with the Mohammed bin Rashid Innovation Fund to support local start-ups and boost entrepreneurship in the UAE. The agreement will allow the entities to support start-ups from the post-conception stage and also assist them in scaling up their operations.
As part of the initiative, the MBRIF Guarantee Scheme and Innovation Accelerator will support Masdar City’s SME development efforts while both organisations will also be able to use each other’s human expertise, infrastructure and technology where necessary.
Mashreq Bank launched NeoBiz in 2019 to offer customised digital offerings for SMEs such as digital onboarding, simplified products, a digital assistant and full transaction capabilities online.
“Our agreement with Masdar City will enable us to increase customer acquisition while also raising awareness for our digital platforms,” said Vikas Thapar, executive vice president and head of business banking and NeoBiz at Mashreq Bank.
“Our commitment to fostering the SME ecosystem and efforts to catalyse SME development is what led to the development of NeoBiz and its suite of specially designed services.”
