The UAE’s industrial sector has witnessed significant growth in financing, with strong backing from both government and private entities. This collaboration is crucial for driving industrial expansion and achieving the ambitious goals of the “Operation 300 Billion” initiative, as highlighted by the Central Bank of the UAE (CBUAE).
A well-funded industrial sector is vital for building a diversified, resilient economy driven by sustainability, innovation, and long-term prosperity. Data from the CBUAE reveals that banks operating in the UAE invested Dh5.537 billion in manufacturing in the first nine months of 2024, bringing total loans to Dh94.85 billion, a historic high. The sector’s financing portfolio grew by 6.2 per cent from the end of 2023, marking a growth rate of over 37 per cent compared to 2015.
Jamal Saleh, Director General of the UAE Banks Federation, reaffirmed the banking sector’s commitment to supporting the industrial sector, which plays a vital role in the UAE’s diversification strategy. He noted the sector’s 11 per cent contribution to the UAE’s GDP in 2023 and the significant opportunities for growth through frameworks established by the Ministry of Industry and Advanced Technology.
Experts predict significant growth in the UAE’s industrial sector in 2025, driven by strong financing and initiatives supporting innovation and sustainability. Key institutions like the Emirates Development Bank (EDB), Khalifa Fund for Enterprise Development (KFED), and the Mohammed Bin Rashid Establishment for SME Development offer crucial financing solutions and training to support innovation and technology-driven industrial projects. These institutions are instrumental in empowering entrepreneurs and enhancing the competitiveness of SMEs in the UAE’s growing industrial landscape.
