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EDB offers loans for housing, SMEs

The bank has an authorised capital of Dh10 billion and the source of Dh5 billion to help in financing developmental, residential and industrial projects for UAE nationals.

Abu Dhabi: Emirates Development Bank (EDB) has begun its lending activities by financing housing for UAE nationals, as well as funding SMEs and other sectors vital to growth.

The development bank, which has been launched after the merger of Emirates Industrial Bank and Real Estate Bank, was formally launched by Shaikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister for Presidential Affairs of the UAE, on Tuesday, in the presence of the nation’s top financial policy-makers, regulators and key bankers.

The bank has an authorised capital of Dh10 billion and the source of Dh5 billion to help in financing developmental, residential and industrial projects for UAE nationals. The bank will provide affordable housing finance to around 30,000 Emiratis six years from now.

A sum of Dh500 million will be allocated towards a credit guarantee scheme with other banks to be available for knowledge-based SMEs, in addition to Dh300 million for SMEs.

The development bank will build strategic partnerships with local and federal authorities to encourage UAE nationals to start businesses; one example being the support of Emirati innovators through the Takamul programme. Through this approach, the bank aims to create a diversified economy, which is sustainable and can deliver long-term prosperity for the UAE.

EDB will offer a number of products to UAE citizens, including supplementary loans, home purchase and construction loans. Products for local businesses will include the credit guarantee scheme, business account and strategic sector finance. Other areas where EDB will engage with UAE nationals include healthcare, manufacturing, ICT and construction.

Al Nahyan was pleased at the bank’s commencement of business activities. He hoped that EDB will be a key addition to the banking sector that will boost overall growth of the economy, and provide Emiratis with services that help them achieve key milestones in their lives, such as owning homes, in addition to supporting entrepreneurs and SMEs.

Khaled Mohammed Salem Balama, EDB chairman, said the bank has the “ability to help shape the nation’s future, empowering Emiratis who aspire to take possession of their own home, while also supporting key areas of the economy, particularly the innovative and entrepreneurial small and medium enterprise sector.”

Established in 2011 under a decree issued by The President, His Highness Shaikh Khalifa bin Zayed Al Nahyan, EDB’s vision is to help build a national economy and allow citizens access to suitable accommodation by providing finance at affordable economic cost.

Rashid Mahboob, acting CEO of EDB, said the success of launching EDB’s operations will provide an impetus to EDB as “we commence our journey, driving development in our nation, our economy and our community.”

haseeb@khaleejtimes.com