UAE banks forge partnership to facilitate international trade

Emirates Development Bank (EDB), the key financial engine of UAE economic development and industrial advancement, and Commercial Bank of Dubai (CBD), one of the leading banks in the UAE, have formally announced a strategic partnership aimed at enhancing international trade services.

This collaboration will combine EDB’s extensive client base and robust financial operational capabilities with CBD’s advanced trade finance expertise, unlocking new growth opportunities for businesses across the UAE.

The official signing ceremony took place at CBD’s Head Office in Dubai, attended by Ahmed Mohamed Al Naqbi, Chief Executive Officer of Emirates Development Bank, and Dr. Bernd van Linder, Chief Executive Officer of Commercial Bank of Dubai.

Under this strategic alliance, CBD will deliver a comprehensive suite of trade finance products and operational services to EDB’s clients. This initiative is designed to empower businesses to expand their portfolios and excel in the international trade arena. Key services will include handling Letters of Credit and Guarantees along with supporting foreign currency payments, ensuring a seamless and efficient trading experience.

His Excellency Ahmed Mohamed Al Naqbi, Chief Executive Officer of Emirates Development Bank, said, “We are pleased to partner with Commercial Bank of Dubai to offer innovative and comprehensive trade finance solutions. This partnership marks a significant milestone in enhancing our trade finance offering, supporting businesses across the UAE. By leveraging our combined expertise and resources, we are dedicated to forging strategic partnerships that will bolster the UAE’s economic development and strengthen its position as a global hub for trade and investment.”

Dr. Bernd van Linder, Chief Executive Officer of Commercial Bank of Dubai, said, “We are delighted to join hands with EDB to embark on this journey that will bring new opportunities and growth for both of the organizations. This partnership highlights our shared vision of empowering businesses in the global trade landscape. Together, we will redefine standards and set new benchmarks for success.”

This partnership signifies a critical advancement in the financial landscape of the UAE, positioning both EDB and CBD as leaders in facilitating international trade and economic competitiveness. The collaboration allows EDB to leverage CBD’s extensive network and processing capabilities, offering clients a broader range of benefits. Meanwhile, CBD stands to gain increased volumes of trade business, opening new revenue streams and enhancing fee income.

The strategic alliance between EDB and CBD strengthens their commitment to providing comprehensive support for UAE businesses engaged in international trade. By combining EDB’s expertise in trade finance and working capital solutions with CBD’s robust financial capabilities, the partnership offers clients optimal support in mitigating risks and streamlining cross-border transactions. This collaboration demonstrates both organizations’ dedication to driving innovation in transaction banking, ultimately facilitating secure, efficient, and seamless global trade for UAE companies.

Separately, Emirates Development Bank announced recently that it aims to provide financing worth Dhs30 billion by 2026.

This financing targets the support of approximately 13,500 companies operating in five priority sectors: renewable energy, industry, advanced technology, healthcare, and food security, according to Shaker Zainal, Business Finance Director at Emirates Development Bank.

On the sidelines of the ‘Make it in the Emirates Forum’, he pointed out the bank allocated Dhs5 billion in financing for industrial projects in 2024 as part of its commitment to empowering the capabilities of advanced industries and enhancing local value addition.

Meanwhile the Ministry of Industry and Advanced Technology (MoIAT) has announced a partnership with Emirates Development Bank (EDB), the key financial engine of economic development an industrial advancement in the UAE, to provide a $100 million (Dhs370 million) financing solution for the new AI Innovation programme.

The AI Innovation programme aligns with the ministry’s efforts to boost innovation, accelerate the adoption of advanced technologies in industry and create new industries underpinned by cutting-edge technologies under the umbrella of the technology transformation programme. It also aligns with EDB’s development mandate focused on advancing economic growth and industrial innovation across its five priority sectors of manufacturing, advanced technology, food security, healthcare, and renewables.

The programme aims to foster collaboration between prominent industry players and technology developers to harness cutting-edge AI technologies to help solve the most pressing industrial challenges within national industry.