EDB contributes Dhs1.91 billion to UAE’s GDP growth last year

Emirates Development Bank (EDB) has announced record growth over the past 12 months. The bank has made a Dhs1.91 billion contribution to the UAE’s GDP growth in 2021 through direct and indirect financing of 1,350 SMEs across priority sectors, this was revealed during the first EDB Board meeting of 2022.

The bank also launched last year a new Credit Guarantee platform, which was able to mobilise more than Dhs332 million of capital to SMEs.

The results underline the success of the bank’s new strategy, which was launched in March 2021 to support UAE’s industrial development, accelerate the adoption of advanced technologies, and empower the growth of SMEs in the UAE.

This will be achieved through the growth and development of large corporations and SMEs in five key sectors: manufacturing, advanced technology, infrastructure, healthcare and food security. As part of its strategy, EDB will also facilitate direct and indirect lending totaling Dhs30 billion by 2025, which is expected to support more than 13,500 companies.

The Board meeting was attended by Dr Sultan Bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of the EDB Board; Dr Ahmad Belhoul Al Falasi, Minister of State for Entrepreneurship and SMEs and EDB Deputy Chairman; Younis Haji Khoury, Under-Secretary of the Ministry of Finance; Mohammed Saif Al Suwaidi, Director-General of the Abu Dhabi Fund for Development (ADFD) and Chairman of the Exports Executive Committee of the Abu Dhabi Exports Office (ADEX); Abdul Wahed, Mohammad Al Fahim, Chairman of NASDAQ Dubai; Mariam Saeed Ghobash, board member of EDB; Khalfan Jumaa Belhoul, CEO of Dubai Future Foundation; Najla Ahmed Al Midfa, CEO of Sharjah Entrepreneurship Centre; and Ahmed Al Kuttab, Director, The Executive Office Directorate at ADNOC Group; and Yousef Yaqoob Almansoori, Principal Legal Researcher at Dubai Police.

EDB’s Chief Executive Officer, Ahmed Mohamed Al Naqbi, presented the EDB’s year-one performance and key achievements to the Board.

Other key achievements of the Emirates Development Bank include the launch of a large corporate banking division in less than a year and a digital banking application focused on SMEs and start-ups. In its first 6 months, over 1000 digital banking accounts have been registered.

Dr Al Jaber said, “Over the years, the UAE has achieved significant growth and progress across various sectors that are now actively contributing to the nation’s GDP growth. Through the Emirates Development Bank and its new strategy, we aim to ensure that the industrial sector keeps pace with that growth and achieves the aspirations of the UAE leadership. The Emirates Development Bank plays a critical role in realising these aspirations by providing the necessary financial and non-financial support to SMEs and large corporations in key industrial sectors.”

He added, “In the first year under its new strategy, EDB was able to make a Dhs1.91 billion contribution to the UAE GDP, underlining its importance not just to the UAE’s industrial sector, but to the nation’s economic diversification, global competitiveness and long-term, sustainable economic growth.”

Dr Al Falasi said, “The past 12 months were pivotal for EDB in its financial and strategic milestones. Just a few highlights include the financing of Dhs1.52 billion to projects in priority sectors and establishing partnerships with nine commercial banks, resulting in credit guarantees worth Dhs332 million. EDB has also implemented a number of new strategies and projects that will maintain its momentum. Our goal now is to continue to enhance our role in accelerating growth of the economy in our five key sectors - manufacturing, technology, healthcare, food security and infrastructure.”

Over the past 12 months, to help accelerate its strategy and attract FDI into the UAE, EDB has signed Memorandums of Understanding with 26 partners, including banks, public and private sector entities, chambers of commerce and free zones. In an effort to ensure proactive stakeholder outreach, EDB has also conducted more than 16 roadshows and industry events.