UAE’s EDB issues MAD 2.4 billion in loans to the industrial sector in the first half of 2022

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Emirates Development Bank (EDB) recently held its board meeting to review the results of the first half of 2022 and monitor the progress of its new strategy which was launched in April 2021 to support the industrial development of the UAE, accelerate the adoption of advanced technologies and fostering the growth of SMEs.

Key milestones for the bank, which is one of the key financial drivers of the UAE’s economic diversification and industrial growth agenda, included mobilizing MAD 2.4 billion in loans to the UAE’s industrial sector in the first half of 2022.

According to the state news agency, W.A.M.this represents an increase of 418% compared to the 464 million Dhs approved since the launch of the new strategy of the bank in 2021.

The increase in industrial financing increased the bank’s contribution to the UAE’s national GDP to Dhs 1.9 billion in the first half of 2022, an increase of 356% from the Dhs 425 million from fiscal year 2021 .

EDB also mobilized Dhs 351 million in capital in the first half of 2022 to support SMEs through its credit guarantee program, an increase of 109% compared to the Dhs 168 million deployed in 2021.

These efforts are supported by the delivery of EDB’s digital solutions, including its new digital banking application, which enables SMEs and startups to start their business by providing a business bank account and IBAN number within 48 hours, then by offering a full range of fast, secure and 24-hour banking services, including requesting and receiving funding.

The initiatives deployed by EDB are part of its new strategy to support the UAE’s industrial growth, adoption of advanced technologies, strengthening the role of SMEs and promoting innovation and entrepreneurship through its range bespoke products and services.

According to EDB’s proprietary Developmental Impact Scorecard, which was created to ensure the bank’s financing is focused on businesses and projects that maximize economic impact for the UAE, 66% of deals of EDB received a development score of at least 4 on a scale. from 0 to 6, reflecting their positive contribution to the overall economy of the UAE and their immense impact on development.

Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of the Board of the EDB, said: “These results demonstrate the bank’s progress in supporting the Emirates’ economic diversification agenda. Arab States and increase its global competitiveness. By expanding access to capital, the bank is helping to develop a global hub for industry, advanced technology and the industries of the future.

“In the first half of 2022, we were able to accelerate this mission and increase our contribution to the national GDP by 356% compared to the whole of 2021, underlining both the potential of the UAE’s industrial sector and the bank’s ability to mobilize funding to support it.”

Ahmed Mohamed Al Naqbi, CEO of EDB, said: “We have witnessed tremendous progress in the first half of 2022. We have approved loans of Dhs 2.4 billion to the UAE industrial sector, i.e. five times the amount we approved in 2021, underscoring our commitment to the growth of the sector and the potential it holds.

“Over the past period, we have worked tirelessly to strengthen our capability partnerships, share our vision with industry leaders, and cement our role as the engine of the national economy to reach greater heights and consolidate its pioneer position. As we look forward to the remainder of this year, we remain committed to delivering a comprehensive business ecosystem for SMBs and startups, as well as accelerating our efforts to deliver best-in-class solutions to a broader customer base.

The board also welcomed news from S&P Global Ratings affirming an “AA-” credit rating with a “stable outlook.”

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