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Tuesday, April 23, 2024

Emirates Development Bank’s Impact on UAE Industrial GDP: A Catalyst for Economic Growth

Emirates Development Bank Empowers UAE’s Industrial Growth with Boost to GDP Contribution

Since the launch of its strategy in 2021, Emirates Development Bank (EDB) has made significant strides in bolstering the UAE’s industrial sector, as evidenced by the surge in its contribution to the country’s industrial GDP. In 2023 alone, EDB’s contribution skyrocketed by 80 percent, reaching Dh4.3 billion, up from Dh2.4 billion in 2022. This remarkable growth brings the total loans financed by the bank to Dh8.7 billion, underscoring its pivotal role in driving economic development and fostering sustainable employment opportunities within the nation.

Emirates Development Bank
Emirates Development Bank


Speaking at the third Investopia Summit in Abu Dhabi, Shaker Zainal, Chief Business Officer at Emirates Development Bank, emphasized the bank’s commitment to nurturing the industrial sector and promoting economic sustainability. He highlighted EDB’s focus on financing transactions and projects that align with the nation’s development objectives, emphasizing the importance of empowering businesses of all sizes to drive economic impact.

Central to EDB’s mission is its dedication to supporting Small and Medium-sized Enterprises (SMEs), which constitute a vital component of the UAE’s economic landscape. Over the past year, Emirates Development Bank recorded a remarkable 72 percent increase in net approvals of financing for SMEs, amounting to Dh3.3 billion. This substantial investment underscores Emirates Development Bank commitment to fostering innovation and growth within the SME sector, addressing key challenges faced by these businesses, and making financing more accessible and efficient through innovative solutions.

Zainal elucidated on Emirates Development Bank unique approach, which transcends mere financial viability assessments to evaluate projects based on their potential developmental impact and alignment with the UAE’s strategic objectives. This approach emphasizes growth through economic impact, rather than solely focusing on profit margins. Moreover, EDB’s strategic partnerships with commercial banks and fintechs have facilitated the launch of innovative programs such as the Credit Guarantee Scheme, digitization finance, trade and supply chain finance, and working capital solutions, enhancing SMEs’ financial inclusion and integration into the national economy.

Highlighting EDB’s commitment to technological advancement and financial inclusion, Zainal underscored the significance of the EDB Business Banking App, which offers seamless banking services with instant IBAN provision and transaction capabilities within 48 hours. Moreover, the app features a digital lending functionality enabling eligible SMEs to apply for loans of up to Dh5 million, thereby fostering innovation and digitization while enhancing financial accessibility for SMEs.

In alignment with the UAE’s sustainability agenda, Emirates Development Bank plays a pivotal role in driving the energy transition and promoting national food security through bespoke financing solutions. Zainal highlighted initiatives such as the Agritech Loans Program, providing finance of up to Dh5 million with a tenor of 10 years, and the Solar Energy Financing Program, aimed at supporting businesses, particularly mSMEs, in transitioning to cleaner energy sources.

Beyond financial services, EDB offers a comprehensive range of non-financial support to drive entrepreneurship and facilitate SMEs’ contribution to economic development. Initiatives such as the EDB Business Lab provide entrepreneurs with a platform for knowledge-sharing, expert guidance, and financial literacy training, thereby enhancing their capacity to access financing and contribute meaningfully to the nation’s economic landscape.

Emirates Development Bank’s unwavering commitment to driving economic growth, fostering innovation, and promoting sustainability underscores its pivotal role in advancing the UAE’s industrial sector. Through strategic financing initiatives, technological innovation, and non-financial support services, EDB continues to empower businesses, particularly SMEs, to thrive and contribute to the nation’s development objectives.Emirates Development Bank’s multifaceted approach to economic development encompasses not only financial support but also technological innovation, entrepreneurship promotion, and capacity-building initiatives.

As a pioneering institution dedicated to advancing the UAE’s industrial sector and fostering sustainable growth, EDB sets a precedent for excellence and innovation in the realm of development finance. With its unwavering commitment to driving positive change and empowering communities, EDB continues to make significant contributions to the nation’s economic prosperity and resilience, laying the foundation for a brighter and more inclusive future for generations to come.

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