Emirates Development Bank (EDB) Launches AgriTech Loan Scheme with $27M Support for Food Security Sector. Emirates Development Bank, a government-owned financial institution dedicated to financing vital sectors in the UAE, has introduced a loan program focused on agriculture technology. With a planned allocation of AED 100M ($27.2M), the initiative aims to provide financial support to the country’s food security sector.
The program aligns with the UAE’s ambitions of becoming a global leader in agricultural innovation, as stated by EDB. It will cater to farmers, local producers, technology providers, equipment suppliers, and other stakeholders within the agriculture support ecosystem.
The scheme offers financing options for green and brownfield projects, capital expenditures, working capital, and medium-term loans. Borrowers can access amounts of up to Dh5 million with competitive interest rates and a lengthy tenor of 10 years.
This effort is in line with the National Food Security Strategy 2051, which aims to position the UAE as the leader in the Global Food Security Index by 2051. The strategy outlines a comprehensive approach to sustainable food production through the utilization of modern technologies while strengthening domestic production.
“We understand UAE food security is fundamental to the long-term health and wellbeing of the population. As the UAE’s development bank, it is our top priority to transform the nation into a regional hub for local food production in line with the National Food Security Strategy 2051,” said Ahmed Al Naqbi, chief executive of Emirates Development Bank.
EDB’s Loan Program Fuels UAE’s Ambitions to Lead in Agricultural Innovation
The National Food Security Strategy 2051 has a goal of positioning the UAE as the leading country on the Global Food Security Index by 2051. The strategy outlines a comprehensive plan to establish a national system that enables sustainable food production through the utilization of modern technologies.
It emphasizes the enhancement of local production as a key component of achieving food security objectives. By implementing these measures, the UAE aims to ensure a robust and self-sufficient food supply for its population in the long term.
“EDB’s commitment to empowering the agricultural community aligns with the UAE’s national agenda, which places utmost importance on achieving food self-sufficiency and reducing dependence on imports,” Mr Al Naqbi said.
“By fostering collaboration between financial institutions and the agriculture sector, EDB aims to catalyse the growth of domestic food production, enhance supply chain resilience and contribute to the nation’s economic development.”
Emirates Development Bank (EDB) is actively providing direct and indirect financing to companies and projects in its five priority sectors, namely manufacturing, renewables, advanced technology, food security, and healthcare, according to The National News.
In its current five-year plan that concludes in May 2025, EDB has allocated Dh30 billion for lending to over 13,500 companies operating in these sectors. EDB aims to approve loans worth Dh6 billion or more this year, matching the financing figure of Dh6.1 billion approved last year.
The bank witnessed a significant increase in approved financing, nearly eight times higher on an annual basis, during the previous year. While small and medium enterprises received Dh1.8 billion in loans, the funding approved for large corporates rose to AED 4.3B.
EDB’s Loan Program Fuels Growth in UAE’s Agricultural Support Ecosystem
EDB extended loans to approximately 180 companies, primarily comprising small enterprises, including 50 to 70 falling under the “micro” businesses category. Through its micro-lending platform powered by Beehive, EDB disbursed loans amounting to over AED 100M.
This year, EDB aims to develop customized financing solutions for the AgriTech sector, recognizing its unique requirements and longer breakeven points. The bank plans to launch a specialized product tailored for the agricultural technology sector.
The newly introduced AgriTech loans program by EDB aims to foster innovation and optimize yields within the agricultural sector. It offers a loan-to-value (LTV) ratio of up to 90%, providing borrowers in the AgriTech sector with increased financial flexibility. The program features repayment periods of up to 2.5 years.
The financing support provided through the AgriTech loans program is intended to facilitate the implementation of precision agriculture techniques, advanced irrigation systems, and state-of-the-art crop monitoring tools. These initiatives aim to promote sustainable practices and enhance productivity within the agricultural sector.