EDB Pledges AED 5 Billion To Propel UAE Manufacturing Sector Forward

Emirates Development Bank (EDB), a pivotal force in UAE's economic and industrial growth, has announced a substantial commitment of AED 5 billion in financing for 2024. This initiative aims to boost the manufacturing sector, aligning with the UAE Industrial Development Strategy. The funding will enhance technology adoption, economic resilience, and diversification.

EDB's mission aligns with government priorities, focusing on fostering a sustainable and self-reliant economy. The bank aims to provide AED 30 billion in financing support to 13,500 companies across five priority sectors—renewables, manufacturing, advanced technology, healthcare, and food security—by 2026.

This announcement was made at the Make it in the Emirates (MIITE) forum, organised by the Ministry of Industry and Advanced Technology (MoIAT). The forum highlighted the importance of strategic partnerships in achieving national economic goals. EDB’s targeted financing includes AED 1 billion allocated for co-lending with commercial banks through credit guarantee schemes and multilateral deals.

Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB, commented on the announcement: "By strategically allocating this significant amount in financing, including AED 1 billion in co-lending with our partners in commercial banks, we are facilitating the adoption of advanced technologies and fostering innovation that will enhance the UAE's manufacturing capabilities."

He added that this financing demonstrates confidence in the UAE's industrial sector and its potential to drive substantial economic growth. Through the Make it in the Emirates initiative and strategic partnership with MoIAT, EDB is committed to translating these financing deals into employment opportunities, enhanced industrial output, greater in-country value, and stronger economic resilience.

Impact of EDB’s Financing Strategy

Since launching its strategy in April 2021 up to Q1 2024, EDB has provided AED 4.7 billion in financing for the manufacturing sector. This constitutes 46% of EDB’s total AED 10.4 billion financing. The new AED 5 billion commitment reflects EDB’s focus on strengthening the UAE’s industrial sector as a cornerstone of the national economy.

The financing aims to support various manufacturing projects incorporating advanced technologies that align with UAE’s economic diversification plans. EDB's strategy not only focuses on financial support but also on fostering an ecosystem conducive to industrial innovation and growth.

Make it in the Emirates Initiative

The Make it in the Emirates initiative, spearheaded by MoIAT, has been instrumental in promoting increased local production and self-reliance. EDB continues to support this initiative, expecting the AED 5 billion financing commitment to significantly impact UAE’s vision for a sustainable and diversified economic future.

This strategic move by EDB underscores its role in driving forward UAE’s industrial capabilities and contributing significantly to national GDP. The bank remains dedicated to supporting projects that align with the country's ambitious economic goals.

With inputs from WAM