The Emirates Development Bank (EDB) recently held a board meeting to review the results of the first half of 2022 and announce a new strategy to support the UAE’s industrial development and progressive accelerate rollout, launched in April 2021 and monitored the progress to facilitate the growth of small businesses.
The key milestones of the bank, which serves as one of the key financial engines for the UAE’s economic diversification and industrial growth agenda, included the mobilization of Dhs2.4bn in loans to the UAE’s industrial sector in H1 2022.
According to the state news agency, WAM, this represents a 418 percent increase compared to the Dhs464m approved from the launch of the bank’s new strategy in 2021.
The rise in industrial financing has increased the bank’s contribution to the UAE national GDP to Dhs1.9bn as of H1 2022, a 356 percent increase on the Dhs425m as of Fiscal Year (FY) 2021.
EDB also mobilised Dhs351m in the capital in H1 2022 to support SMEs via its credit guarantee scheme, a 109 percent increase from the Dhs168m deployed across 2021.
These efforts are supported by the delivery of the EDB’s digital solutions, including its new digital banking app, which enables SMEs and startups to kick-start their business by providing a business banking account and an IBAN number within 48 hours and then offering a comprehensive range of fast, secure, and round-the-clock banking services, including applying for and receiving finance.
The initiatives deployed by EDB are part of its new strategy to support the UAE’s industrial growth, adoption of advanced technology, enhancement of the role of SMEs, and promotion of innovation and entrepreneurship through its tailored suite of products and services.
According to EDB’s proprietary ‘Developmental Impact Scorecard’, which was created to ensure that the bank’s financing is focused on businesses and projects that maximize economic impact for the UAE, 66 percent of EDB’s transactions received a developmental score of at least 4 on a scale of 0-6, reflecting their positive contribution to the wider UAE economy and immense developmental impact.
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, and chairman of the EDB Board of Directors, said: “These results are a testament to the bank’s progress towards supporting the UAE’s economic diversification agenda and increasing its global competitiveness. By expanding access to capital, the bank is helping develop a global hub for industry, advanced technology, and the industries of the future.
“In the first half of 2022, we have been able to accelerate this mission and increase our contribution to national GDP by 356 percent compared to the entirety of 2021, underlining both the potential of the UAE industrial sector and the bank’s ability to mobilize finance to support it.”
Ahmed Mohamed Al Naqbi, CEO of EDB, noted, “We have witnessed tremendous progress during the first half of 2022. We have approved Dhs2.4bn loans to the UAE’s industrial sector, which is five times the amount we approved in 2021, highlighting our commitment to the growth of the sector and the potential that it holds.
“Over the past period, we worked tirelessly to strengthen our capabilities partnerships, share our vision with industry leaders, and cement our role in driving the national economy to reach greater heights and consolidate its pioneering position. As we look forward to the remainder of this year, we remain committed to providing an all-encompassing business ecosystem for SMEs and startups, as well as redouble our efforts to deliver best-in-class solutions to a wider customer base.”
The Board also welcomed news from S&P Global Ratings, which confirmed its ‘AA-‘ credit rating with a ‘stable outlook’.
