EDB seeks to boost GDP contribution to Dh10b by 2026

Emirates Development Bank (EDB) reported on Tuesday a significant 80 per cent surge in its contribution to the UAE’s industrial economy in 2023, and said it aims to boost its contribution to the nation’s GDP to Dh10 billion by 2026.

The bank, a key financial engine of economic development and industrial advancement in the UAE, said its contribution to the UAE’s industrial economy grew from Dh2.4 billion in 2022 to Dh4.3 billion in 2023. In its annual performance report, the bank noted that it had contributed to the creation of 17,219 jobs, illustrating its commitment to fostering economic growth and development. The 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, bank said.

“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,” said Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, and Chairman of Emirates Development Bank.

He said 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 Dh8.7 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,” Al Jaber said.

Ahmed Mohamed Al Naqbi, CEO of Emirates Development Bank, said 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 per cent increase in SME financing approvals, totaling Dh3.3 billion, which underlines our commitment to nurturing the backbone of our economy, as well as a Dh1.3 billion in financing approvals under the Credit Guarantee Scheme with partner banks, enhancing access to capital for SMEs.”

Al Naqbi said EDB has set a clear goal to elevate its contribution to the UAE’s GDP to Dh 10 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 Dh1.3 billion in financing under the Credit Guarantee Scheme with partner banks in the UAE, which marks a 64 per cent 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 Dh500 million in financing, including two first-of-a-kind programs 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 Dh30 billion in financing support to 13,500 companies within five sectors – manufacturing, food security, healthcare, technology, and renewables — by 2026.

• Business