EDB's AED 10.4 Billion Funding Milestone Bolsters UAE's Industrial GDP And Job Market

The Emirates Development Bank (EDB), a cornerstone of economic growth and industrial advancement in the United Arab Emirates, has announced a significant leap in its total financing, reaching AED10.4 billion since the initiation of its strategic plan in 2021. This surge has notably contributed AED4.9 billion to the nation's industrial GDP. These figures were highlighted during a Board meeting chaired by Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of the EDB Board, which took place this week to discuss the Bank's performance up until 31 March 2024.

Over the past three years, EDB has demonstrated substantial progress, particularly in supporting the UAE's key priority sectors. Noteworthy is a 665 percent increase in cumulative financing to Small and Medium Enterprises (SMEs), amounting to AED3.4 billion. Additionally, large corporate loans have seen a dramatic rise of 2,942 percent, totaling AED5.5 billion in cumulative financing during this period. The Bank's Credit Guarantee Scheme with partner commercial banks also saw significant growth, with financing reaching AED1.4 billion.

Another highlight from the Bank's achievements is its contribution to creating 18,606 industrial jobs within the UAE, underlining EDB's dedication to fostering job creation and business expansion. These accomplishments underscore EDB's critical role in enhancing the nation's priority economic sectors and its commitment to the UAE's vision for industrial diversification and sustainable growth.

Dr. Al Jaber remarked on the Bank's pivotal contributions to the non-oil GDP, aligning with the UAE leadership’s vision for future economic growth and diversification. He emphasized EDB's role in empowering businesses and enabling key development sectors that form the foundation of a resilient and thriving economy.

Ahmed Mohamed Al Naqbi, CEO of Emirates Development Bank, reflected on the Bank's continuous efforts to strengthen its role in the UAE’s economic landscape. He highlighted the focus on sectors crucial for the nation's future development and the drive towards innovative and sustainable financing solutions. Al Naqbi pointed out that EDB’s strategic initiatives have significantly advanced the national agenda, with an extraordinary increase in industrial GDP impact since April 2021.

EDB aims to provide AED30 billion in financing support to 13,500 companies across five sectors – manufacturing, food security, healthcare, technology, and renewables - by 2026. Currently, 46 percent of the Bank’s cumulative financing has been allocated to the manufacturing sector, underscoring its vital role in the UAE economy. The renewables sector has received 21 percent of EDB’s cumulative financing, highlighting the Bank’s commitment to sustainable development.

The achievements from 2021 to Q1 2024 reflect EDB’s dedication as a progressive force in channeling essential financing to support and accelerate the UAE's economic development and diversification mandate. As EDB moves forward, it continues to innovate and enhance its financing solutions to empower an increasing number of businesses across various sectors.

With inputs from WAM