EDB’s contribution to Industrial GDP grows 80% in 2023

Emirates Development Bank (EDB), the key financial engine of economic development and industrial advancement in the UAE, has unveiled its 2023 results, showcasing an extraordinary year of achievements and strategic milestones.

The Bank revealed a significant 80 percent surge in its contribution to the UAE’s industrial GDP, which has grown from Dhs2.4 billion in 2022 to Dhs4.3 billion in 2023, as well as its contribution to the creation of 17,219 jobs, illustrating its commitment to fostering economic growth and development.

The annual results underscore EDB’s substantial impact on the nation’s priority economic sectors, reflecting its pivotal role in the UAE’s vision for industrial diversification and sustainable growth.

Dr Sultan Bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of Emirates Development Bank, commented, “In line with the UAE leadership’s vision for Emirates Development Bank to be a key financial enabler of the UAE’s Industrial Strategy, and play an effective role in supporting sustainable economic and social development, the Bank continues its significant achievements which reinforce the nation’s economic resilience and advancement.”

He added, “EDB’s dynamic strategy which offers innovative financing solutions has played a pivotal role in reshaping the UAE’s industrial sector which led to a remarkable increase in the industrial GDP impact in 2023, bringing the total of net financing approvals since the launch of EDB’s strategy in 2021 to Dhs8.7 billion.

“These unparalleled results showcase the Banks’ commitment to making progress towards its goals, building a diversified economy, and contributing to the resilience and competitiveness of the national economy.”

The Bank’s flexible financing solutions and patient debt approach have significantly bolstered industrial growth, SME support, and technological advancements, aligning with the UAE government’s strategic goals.

Ahmed Mohamed Al Naqbi, CEO of Emirates Development Bank, added, “The year 2023 has been a milestone for EDB in reinforcing its role as a key enabler of the UAE’s economic growth and industrial advancement. Our strategic emphasis on sectors crucial to the UAE’s future development has led to the deployment of innovative and sustainable financing solutions. This resulted in a significant 72 percent increase in SME financing approvals, totalling Dhs3.3 billion, which underlines our commitment to nurturing the backbone of our economy, as well as Dhs1.3 billion in financing approvals under the Credit Guarantee Scheme with partner banks, enhancing access to capital for SMEs.

“We have set a clear goal to elevate EDB’s contribution to the UAE’s GDP to Dhs10 billion by 2026, focusing on empowering the private sector to drive the nation’s economic growth. Our efforts and achievements have been instrumental in positioning EDB as a catalyst for the economic growth of the UAE.”

Moreover, EDB has approved a total of Dhs1.3 billion in financing under the Credit Guarantee Scheme with partner banks in the UAE, which marks a 64 percent increase compared to the previous year and reflects the Bank’s commitment to enhancing the financial inclusion of SMEs.

EDB launched five new programmes with a total value of more than Dhs500 million in financing, including two first-of-a-kind programmes dedicated to financing agritech and solar energy projects. This reaffirms the Bank’s alignment with the UAE’s climate goals and net-zero ambitions as well as its comprehensive approach to economic development.

The Bank has a mandate to approve Dhs30 billion in financing support to 13,500 companies within five sectors - manufacturing, food security, healthcare, technology, and renewables - by 2026.

Meanwhile, Khalifa Fund for Enterprise Development has announced the opening of registration for its first workshop in the ‘Business Opportunities in Priority Sectors’ Workshop Series. Scheduled to commence on 4th March, 2024, this workshop will focus on the Information and Communication Technology (ICT) sector and the Healthcare sector.

Providing deep insights on the unique challenges and opportunities within these industries, the workshop promises a transformative experience spanning four days and totalling 20 hours.

The workshop format combines real-life case studies with interactive sessions, equipping participants with the practical tools and insights necessary to transform their ideas into successful businesses. While the workshop will be conducted online for the first three days to ensure accessibility and convenience for aspiring entrepreneurs, the fourth day will require participants’ physical presence for idea presentations to a panel of experts and stakeholders. Participants will receive invaluable feedback and recommendations based on the evaluation of their ideas. Even after the workshop concludes, participants will benefit from continued comprehensive support and guidance from experts for two months.

In collaboration with Sia Partners, the ‘Business Opportunities in Priority Sectors workshop series’ offers participants a unique opportunity to refine their business models, pitch their ideas to industry-leading experts, and gain invaluable insights into market trends and regional insights. With a focus on fostering innovation and entrepreneurship, the workshop series aligns with Abu Dhabi’s strategic vision, tapping into the immense potential of SMEs within its priority sectors.

Khalifa Fund invites aspiring Emirati entrepreneurs with existing businesses in the ICT or healthcare sectors to apply for this transformative learning experience.

WAM