Emirates Development Bank delivers record increase in industrial GDP impact - Middle East News 247
July 14, 2024
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Emirates Development Bank delivers record increase in industrial GDP impact

Emirates Development Bank (‘EDB’ or the ‘Bank), 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 AED 10.4 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 31 March 2024. The Board meeting was led by His Excellency Dr Sultan Ahmed Al Jaber, Chairman of the EDB Board and Minister of Industry and Advanced Technology.

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% increase in cumulative financing to SMEs reaching a total of AED 3.4 billion, as well as a surge of 2,942% in large corporate loans reaching AED 5.5 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 AED 1.4 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.

His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, and Chairman of Emirates Development Bank, 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.”

H.E 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 AED 10.4 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.”

His Excellency 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 channeling 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 AED 30 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% of the Bank’s cumulative financing since the launch of its strategy have 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% of EDB’s cumulative financing, a clear indicator of the Bank’s commitment to sustainable development.

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