The Ministry of Industry and Advanced Technology (MoIAT) has signed a Memorandum of Understanding (MoU) with Mashreq, a leading financial institution in the UAE. The purpose of the MoU is to collaborate and stimulate the growth of the manufacturing industry in the country.
This partnership is a key component of the Ministry of Industry and Advanced Technology’s (MoIAT) “Make it in the Emirates” initiative. The initiative aims to attract industrialists, investors, innovators, and entrepreneurs to establish their operations in the UAE. It serves as a platform for promoting and supporting the growth of the manufacturing sector in the country.
The agreement aligns with the broader objective of “Operation 300 Bn,” an initiative to establish the UAE as a global industrial hub and increase the manufacturing sector’s contribution to the country’s GDP.
Mashreq will contribute to sustainable growth in critical industrial sectors. They will do so by offering competitive financing solutions, advisory services, and banking facilities to both local and international stakeholders. These initiatives will support the development and expansion of businesses in key industries, fostering innovation, job creation, and economic diversification.
Allocation for the Industrial Sector
Additionally, Mashreq has committed to allocating AED 1B specifically for the country’s industrial sector.
During the ongoing forum at Abu Dhabi Energy Centre, Osama Amir Fadhel from MoIAT and Joel Van Dusen from Mashreq signed the MoU. The signing was witnessed by MoIAT’s Under-Secretary, Omar Al Suwaidi.
The two-day forum was organized by MoIAT in collaboration with ADDED and ADNOC. The primary objective of the forum was to facilitate discussions between major industrial companies and enablers in the UAE. The focus of these discussions was on procurement plans and their potential for local manufacturing investments. The forum provided a platform for fruitful exchanges of ideas and opportunities for collaboration between key stakeholders in the industrial sector.
Al Suwaidi said, “This partnership will enable manufacturing companies and help them to play an enhanced role in Operation 300 Billion, as well as the UAE Net Zero by 2050 strategic initiative. The ministry is committed to working with national financial institutions to empower members of the UAE’s industrial community and drive their digital transformation in line with national objectives.”
For his part, Joel Van Dusen commented, “It gives us great pleasure to partner with the Ministry of Industry and Advanced Technology and be part of its industrial transformation agenda, especially that we are among the first banks in the UAE to partner with MoIAT for supporting the manufacturing sector and the Make in Emirates agenda. In line with its environmental, social, and governance (ESG) strategy, Mashreq is at the forefront of supporting corporates with sustainability-oriented financing solutions that enable them to adopt climate-friendly practices. We are keen to leverage our wide range of offerings to promote sustainable and green manufacturing as one of the main enablers of economic diversification in the UAE.”
Mashreq’s Contribution to Sustainable Growth in Critical Industrial Sectors
To promote the use of advanced technology in the industrial sector, Mashreq will offer various financing solutions. These solutions are designed to reduce the environmental impact of industrial activities. Additionally, Mashreq will provide Shari’ah-compliant products as part of its financing offerings.
These solutions encompass a wide range of financial products and services. They include green loans, which support environmentally-friendly projects and initiatives. Additionally, Mashreq offers sustainability-linked loans and bonds, designed to incentivize borrowers to achieve specific sustainability targets. Transitional loans and bonds are also available, assisting businesses in their transition towards more sustainable practices.
Furthermore, Mashreq provides social loans, aiming to address social challenges and promote positive social impact. Trade finance services are offered to facilitate international trade transactions, while structured finance solutions cater to the specific needs of complex projects.
Benefits for Companies
Furthermore, Mashreq has plans to provide manufacturing companies with its advanced digital banking services. These services will include a customized application interface designed specifically for the manufacturing sector. The interface will offer tailored money management solutions and advice to meet the unique needs of manufacturing businesses. This initiative aims to enhance the financial management capabilities of manufacturing companies and support their growth and operational efficiency. The details were reported by WAM.
The bank will also support the ESG supply chain financing program, finance business expansion initiatives, and facilitate the growth of UAE companies’ exports through the Mashreq Global Network.
The partnership between MoIAT and Mashreq aims to benefit a wide range of companies, from small and medium-sized enterprises (SMEs) to large corporations.
Among the specific target clients are food manufacturing companies associated with the UAE Food and Beverage Business Group.
