The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
ABU DHABI / WAM
Emirates Development Bank (EDB), the key financial engine of economic development and industrial advancement in the UAE, has unveiled a record increase in total financing since the launch of EDB’s strategy in 2021 to AED10.4 billion, bringing its cumulative contribution to the nation’s industrial GDP impact to AED4.9 billion.
The milestone results were presented at a Board meeting held this week to review the bank’s results for the period ending on March 31 The Board meeting was led by Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, and Chairman of the EDB Board.
EDB’s three-year performance results showcase transformative progress driven through strategic focus and support for the key priority sectors crucial to the UAE’s national development agenda. This included 665 percent increase in cumulative financing to SMEs reaching a total of AED3.4 billion, as well as a surge of 2,942 percent in large corporate loans reaching AED5.5 billion in cumulative financing in the three-year period. Financing through the bank’s Credit Guarantee Scheme with partner commercial banks achieved a remarkable growth in financing, amounting to AED1.4 billion.
Results also revealed the bank’s contribution to the creation of 18,606 industrial jobs in the UAE, reflecting EDB’s commitment to propelling job creation and business growth.
These results underscore EDB’s substantial impact on the nation’s priority economic sectors, reflecting its pivotal role in the UAE’s vision for industrial diversification and sustainable growth.
Dr Al Jaber commented, “As the key financial engine of economic growth and industrial advancement in the UAE, Emirates Development Bank continues to drive impactful contributions to non-oil GDP in line with the UAE leadership’s vision for future economic growth and diversification. The bank’s outstanding results over the past three years reflect its pivotal role in empowering businesses and enabling key development sectors which reinforce the foundation of a resilient and thriving economy.”
He added, “EDB’s comprehensive financial and non-financial solutions support the full spectrum of businesses within the country, from growing SMEs to well-established corporations, across five priority sectors.”
“EDB’s strategic initiatives and robust financing support have significantly advanced our national agenda, resulting in an extraordinary increase in industrial GDP impact, with AED10.4 billion in financing since the launch of the bank’s ambitious strategy in April 2021. These efforts are pivotal in empowering over 13,500 companies by 2026, cementing our commitment to fostering a resilient, diversified, and competitive economy.”
Ahmed Mohamed Al Naqbi, CEO of Emirates Development Bank, added, “Building on our achievements in 2023, we continue to strengthen our role as a pivotal force in the country’s economic landscape. Our focus remains on sectors that are crucial for the nation’s future development, driving forward innovative and sustainable financing solutions. Our remarkable achievements in the past three years were driven by a laser focus on driving a robust and diversified economy while ensuring private sector penetration and enhancing our strategic offering from trade finance and working capital solutions to supply chain finance, cash management and FDI attraction.
He added, “The milestone achievements and efforts from 2021 to Q1 2024 reflect EDB’s role as a progressive force channelling essential financing to support and accelerate the UAE’s economic development and diversification mandate. As we move forward, we continue to innovate and elevate our financing solutions to empower more and more businesses.”
EDB has a mandate to provide AED30 billion in financing support to 13,500 companies within five sectors – manufacturing, food security, healthcare, technology, and renewables – by 2026. In line with this, 46 percent of the Bank’s cumulative financing since the launch of its strategy has empowered the manufacturing sector, reinforcing its crucial role in the UAE’s economy. The renewables sector, vital for the UAE’s sustainable future, has received 21 percent of EDB’s cumulative financing, a clear indicator of the Bank’s commitment to sustainable development.