Gulf Today, Tuesday, Jul 16, 2024 | Muharram 10, 1445

EDB reports Dhs11.14b in H1 cumulative financing

United Arab Emirates:

Emirates Development Bank (EDB) has reported outstanding H1 2024 results, marking a significant impact on the UAE’s economy. The Bank’s cumulative total financing since launching its new strategy in April 2021, has reached Dhs11.14 billion, underscoring its commitment to vital sectors integral to the national development and diversification agenda. This financing milestone has notably boosted EDB’s contribution to the UAE’s industrial GDP impact to Dhs5.5 billion since 2021.
The Bank has supported CAPEX financing of industrial projects valued at Dhs48 billion, greenfield projects worth Dhs14 billion and Foreign Direct Investment projects worth Dhs6.8 billion, further solidifying the UAE’s status as a global hub for advanced industries and technology. In addition, the cumulative results revealed the Bank’s contribution to the creation of 22,000 industrial jobs in the UAE through EDB-backed projects, reflecting EDB’s commitment to propelling job creation and business growth.

Dr Sultan Bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of Emirates Development Bank, commented, “In line with the vision of our wise leadership, EDB remains dedicated to supporting industrial and economic growth in the UAE. The H1 2024 performance results demonstrate its unwavering commitment to enabling key industrial sectors and supporting the UAE’s vision for economic diversification and resilience. The substantial impact on industrial GDP highlights EDB’s strategic focus on delivering innovative financial solutions, including CAPEX financing for major industrial and FDI projects. By enabling the adoption of AI and advanced technologies, we are propelling EDB’s role to unlock sustainable industrial growth in the UAE.”

Dr Al Jaber emphasised the Bank’s alignment with the UAE’s broader economic development roadmap. “The successful delivery of EDB’s mandate, which has been validated by the recent S&P Global rating of AA, further solidifies our position as a key driver of economic development in the region. EDB’s commitment to these principles keeps it at the forefront of fostering a sustainable and diversified economy for the UAE.” Ahmed Mohamed Al Naqbi, CEO of Emirates Development Bank, stated, “Our total year-to-date financing in H1 2024 reached Dhs3.6 billion across our 5 key sectors: manufacturing, advanced technology, food security, healthcare, and renewables. These outstanding results highlight our dedication to fulfilling our strategic mandate of fostering economic growth and advancing the national industrial landscape. By focusing on key sectors vital to the UAE’s future, we help build a robust and resilient economy capable of weathering global challenges. With our nimble execution of our strategic priorities, we are in an excellent position to continue supporting the five key sectors and bolster our national GDP contribution with the aim of supporting the UAE’s vision for a diversified and sustainable economy.” S&P Global’s upgrade of EDB’s long-term issuer credit rating from AA- to AA, the highest for any UAE and Mena bank, reaffirms EDB’s strong financial risk profile and the favourable economic conditions within the UAE.

EDB’s total financing for the manufacturing sector in H1 2024 reached Dhs2 billion, accounting for 54 per cent of the Bank’s total financing in H1. This significant share underscores EDB’s strategic focus on strengthening the UAE’s industrial base and enhancing national advanced manufacturing capabilities.

In the advanced technology sector, financing totalled Dhs532 million, aligning with EDB’s objective to accelerate the adoption of cutting-edge technologies, positioning the UAE as a leader in innovation and technological advancements. The renewables sector secured Dhs833 million in financing, reflecting EDB’s commitment to supporting sustainable energy projects and contributing to the UAE’s green economy. Furthermore, the food security sector received Dhs148 million in financing, supporting the nation’s drive towards self-sufficiency and sustainability in food production.

H1 financing for mSMEs (micro, small, and medium enterprises) totalled Dhs980 million, highlighting EDB’s role in fostering entrepreneurship and supporting the growth of small businesses across the UAE. The Credit Guarantee Scheme, in collaboration with partner commercial banks, achieved remarkable growth, with financing amounting to Dhs343 million. This initiative has significantly enhanced financial inclusion for mSMEs across several economic sectors. Additionally, EDB’s whole institutional banking, primarily financing large corporates, reached Dhs2.4 billion, underscoring EDB’s capability to support major industrial and economic projects. The Bank’s financing in H1 has also contributed to the creation of 6,200 industrial jobs in the UAE through EDB-backed projects, underscoring the Bank’s pivotal role in job creation and economic resilience.

EDB’s H1 2024 financing results underline its critical role and unwavering commitment to driving industrial growth and economic diversification in the UAE. By fostering innovation, advancing technology adoption, and promoting sustainable growth, EDB is strengthening the UAE’s industrial base also in addition to playing a pivotal role in driving economic resilience, job creation, and in-country value.