Emirates Development Bank announces contribution of $520 million to UAE’s GDP

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Emirates Development Bank (EDB), based in Abu Dhabi, has contributed 1.91 billion dirhams ($520 million) to the gross domestic product of the United Arab Emirates over the past twelve months, while continuing to play a key role in supporting the Gulf country’s industrial strategy.

The announcement was made during the EDB’s first board meeting in 2022.

The lender also provided direct and indirect financing to 1,350 small and medium-sized enterprises (SMEs) in priority sectors and rolled out a new credit guarantee platform, which was able to mobilize more than 332 million dirhams of capital for SMEs, he announced in a statement on Sunday.

The bank’s new economic strategy and contribution, which was launched in March 2021, underlines “its importance not only for the UAE’s industrial sector, but also for the country’s economic diversification, global competitiveness and long-term sustainable economic growth. term,” Dr Sultan said. Al Jaber, Minister of Industry and Advanced Technology and Chairman of the Board of EDB.

“Over the years, the UAE has achieved significant growth and progress in various sectors which are now actively contributing to the country’s GDP growth,” Dr. Al Jaber said.

“Through the EDB and its new strategy, we aim to ensure that the industrial sector keeps pace with this growth and realizes the aspirations of the leaders of the UAE.”

EDB, founded in 2011 through the merger of Emirates Industrial Bank and Real Estate Bank, plays a key role in supporting the UAE’s industrial sector through financing programs.

The bank’s new strategy was launched in March 2021 to support industrial development in the UAE, accelerate the adoption of cutting-edge technologies and foster the growth of SMEs in the country.

It focuses on the growth and development of large companies and SMEs in five key sectors, including manufacturing, advanced technology, infrastructure, healthcare and food safety.

The lender has allocated 30 billion dirhams to facilitate direct and indirect loans to more than 13,500 companies in these priority sectors by 2025.

“Some highlights include the financing of Dh1.52 billion for projects in priority sectors and the establishment of partnerships with nine commercial banks, resulting in credit guarantees worth Dh332 million,” said said Ahmad Al Falasi, Minister of State for Entrepreneurship and SMEs and Vice President of EDB.

Over the years, the UAE has achieved significant growth and progress in various sectors. Through the EDB and its new strategy, we aim to ensure that the industrial sector keeps pace with this growth

Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology of the United Arab Emirates and Chairman of the Board of EDB

EDB also launched a large corporate banking division in less than a year and a digital banking application focused on SMEs and start-ups. In its first six months, more than 1,000 digital bank accounts were registered, according to the statement.

The lender has also signed memorandums of understanding with 26 partners, including banks, public and private sector entities, chambers of commerce and free zones, over the past 12 months to attract foreign direct investment (FDI). in the UAE. He has also hosted over 16 industry roadshows and events.

EDB has been active in creating local partnerships. Last October, it signed an agreement with the Abu Dhabi Investment Board to further stimulate FDI and attract more companies to the capital. A month earlier, it had partnered with Ajman Free Zone to support the development of Emirates-led SMEs.

“We will continue to advance our efforts to support priority sectors and increase our value-added financial support for projects in technology, healthcare, food security, manufacturing and infrastructure as we we look to the coming year,” EDB Managing Director Ahmed Al Naqbi said. noted.

Mr. Al Naqbi spearheaded the launch of two EDB initiatives worth a total of 10 billion dirhams as part of the UAE’s Projects of the 50 campaign. The initiative has allocated 5 billion dirhams to support Emirati entrepreneurship and innovation, and an additional 5 billion dirhams to accelerate industrial development and the adoption of advanced technologies in the United Arab Emirates.

Updated: April 03, 2022, 11:39 a.m.

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