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EDB’s Dh30b lending drive seeks to support over 13,500 UAE firms

The objective is to expedite all-round growth through the development of large corporations and SMEs in five key sectors: manufacturing, advanced technology, infrastructure, healthcare and food security

Emirates Development Bank (EDB) said it would facilitate direct and indirect lending totalling Dh30 billion by 2025 as part of its new strategy to propel industrial and technological growth.

The strategy, which was launched last year, aims to support UAE’s industrial development, accelerate the adoption of advanced technologies, and empower the growth of SMEs in the UAE.

The bank said the Dh30 billion lending initiative is expected to support more than 13,500 companies.

The objective is to expedite all-round growth through the development of large corporations and SMEs in five key sectors: manufacturing, advanced technology, infrastructure, healthcare and food security.

At a recent board meeting, EDB’s chief executive officer Ahmed Mohamed Al Naqbi presented the bank’s performance and key achievements over the past one year. This included a Dh1.91 billion contribution to the UAE’s GDP growth, direct and indirect financing of 1,350 SMEs across priority sectors, and the launch of a new credit guarantee platform, which was able to mobilise more than Dh332 million of capital to SMEs.

Other key achievements of EDB include the launch of a large corporate banking division in less than a year and a digital banking application focused on SMEs and start-ups. In its first six months, over 1,000 digital banking accounts have been registered.

Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of the EDB Board, said the UAE has achieved significant growth and progress across various sectors that are now actively contributing to the nation’s GDP growth.

“Through EDB and its new strategy, we aim to ensure that the industrial sector keeps pace with that growth and achieves the aspirations of the UAE leadership. The Emirates Development Bank plays a critical role in realizing these aspirations by providing the necessary financial and non-financial support to SMEs and large corporations in key industrial sectors.”

The minister pointed out that in the first year under its new strategy, EDB was able to make a Dh1.91 billion contribution to the UAE GDP, underlining its importance not just to the UAE’s industrial sector, but to the nation’s economic diversification, global competitiveness and long-term, sustainable economic growth.

Dr Ahmad Belhoul Al Falasi, Minister of State for Entrepreneurship and SMEs and EDB Deputy Chairman, who also attended the board meeting along with several high ranking officials, said the past 12 months were pivotal for EDB in its financial and strategic milestones. Among the highlights are the financing of Dh1.52 billion to projects in priority sectors and establishing partnerships with nine commercial banks, resulting in credit guarantees worth Dh332 million.

“EDB has also implemented a number of new strategies and projects that will maintain its momentum. Our goal now is to continue to enhance our role in accelerating growth of the economy in our five key sectors – manufacturing, technology, healthcare, food security and infrastructure,” said Al Falasi.

During the past one year, EDB has signed Memorandums of Understanding with 26 partners, including banks, public and private sector entities, chambers of commerce and free zones. In an effort to ensure proactive stakeholder outreach, EDB has also conducted more than 16 roadshows and industry events, said the minister.

Al Naqbi said EDB is committed to creating a supportive environment for businesses to help build a more prosperous future for the UAE and cement the nation’s position as a destination where businesses can thrive.

“The growth achieved by EDB in the past year is a result of the unwavering support of the EDB Board and testament to the strategy that was approved 12 months ago.”

“We will continue to drive forward our efforts to support priority sectors and increase our value-added financing support for projects in technology, healthcare, food security, manufacturing and infrastructure as we look to the year ahead,” said Al Naqbi.

— issacjohn@khaleejtimes.com