EDB's Strategic Financing Elevates UAE's Industrial Growth And Job Creation In H1 2024

Emirates Development Bank (EDB) has announced impressive results for the first half of 2024, significantly impacting the UAE's economy. Since launching its new strategy in April 2021, EDB's cumulative total financing has reached AED11.14 billion. This milestone highlights the Bank’s dedication to sectors crucial for national development and diversification.

In H1 2024, EDB's total financing amounted to AED3.6 billion across five key sectors: manufacturing, advanced technology, food security, healthcare, and renewables. His Excellency Ahmed Mohamed Al Naqbi, CEO of Emirates Development Bank, stated, "These outstanding results highlight our dedication to fulfilling our strategic mandate of fostering economic growth and advancing the national industrial landscape."

The manufacturing sector received AED2 billion in financing, representing 54 percent of EDB’s total financing for H1. This substantial share underscores the Bank’s focus on strengthening the UAE’s industrial base and enhancing advanced manufacturing capabilities.

Financing for the advanced technology sector totalled AED532 million. This aligns with EDB’s goal to accelerate the adoption of cutting-edge technologies, positioning the UAE as a leader in innovation. The renewables sector secured AED833 million in financing, reflecting EDB’s commitment to supporting sustainable energy projects and contributing to the UAE’s green economy.

The food security sector received AED148 million in financing. This supports the nation’s drive towards self-sufficiency and sustainability in food production. Additionally, H1 financing for micro, small, and medium enterprises (mSMEs) totalled AED980 million.

Job Creation and Economic Resilience

EDB has played a significant role in job creation through its projects. The cumulative results revealed that EDB-backed projects have contributed to creating 22,000 industrial jobs in the UAE since 2021. In H1 alone, these projects created 6,200 industrial jobs.

The Credit Guarantee Scheme achieved remarkable growth with financing amounting to AED343 million. This initiative has significantly enhanced financial inclusion for mSMEs across various economic sectors.

Strategic Focus and Economic Impact

Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of Emirates Development Bank, commented on EDB's performance: "The H1 2024 performance results demonstrate its unwavering commitment to enabling key industrial sectors and supporting the UAE's vision for economic diversification and resilience." He emphasized that EDB remains dedicated to supporting industrial growth aligned with the UAE’s broader economic development roadmap.

S&P Global upgraded EDB’s long-term issuer credit rating from AA- to AA. This is the highest rating for any bank in the UAE and MENA region. The upgrade reaffirms EDB’s strong financial risk profile and favourable economic conditions within the UAE.

Institutional Banking Contributions

EDB's institutional banking primarily finances large corporates. In H1 2024, this segment reached AED2.4 billion in financing. This underscores EDB’s capability to support major industrial and economic projects.

The Bank also supported CAPEX financing of industrial projects valued at AED48 billion, greenfield projects worth AED14 billion, and Foreign Direct Investment (FDI) projects worth AED6.8 billion.

"By enabling the adoption of AI and advanced technologies," Dr. Sultan bin Ahmed Al Jaber added, "we are propelling EDB’s role to unlock sustainable industrial growth in the UAE."

The substantial impact on industrial GDP highlights EDB’s strategic focus on delivering innovative financial solutions including CAPEX financing for major industrial and FDI projects.

EDB's H1 2024 results underline its critical role in driving industrial growth and economic diversification in the UAE. By fostering innovation, advancing technology adoption, and promoting sustainable growth, EDB strengthens the UAE's industrial base while playing a pivotal role in job creation and economic resilience.

With inputs from WAM