UAE’s EDB allocates Dhs5bn to boost manufacturing sector

UAE’s Emirates Development Bank (EDB) said on Tuesday that it plans to commit $1.4bn (Dhs5bn) in financing this year to accelerate the growth of the manufacturing sector.

The funding aims to drive technological advancements, economic resilience, and diversification, particularly in projects incorporating advanced technologies aligned with the country’s economic diversification strategy.

The development bank seeks to provide Dhs30bn in financing to support 13,500 companies within five priority sectors by 2026. This includes Dhs1bn for co-lending with commercial banks through credit guarantee schemes and multilateral deals, extending the impact and reach of the financing initiative.

“By strategically allocating this significant amount in financing, including Dhs1bn in co-lending with our partners in commercial banks, we are facilitating the adoption of cutting-edge technologies and fostering innovation that will enhance the UAE’s manufacturing capabilities,” said Ahmed Mohamed Al Naqbi, the CEO of EDB.

“This financing demonstrates our confidence in the UAE’s industrial sector and its potential to drive substantial economic growth.”

Since the launch of its strategy in 2021, the bank’s support for the manufacturing sector reached Dhs4.7bn in Q1 2024, constituting 46 per cent of EDB’s Dhs10.4bn total financing.

Meanwhile, the development bank partnered with the UAE Ministry of Industry and Advanced Technology (MoIAT) to provide a $100m financing solution for a new artificial intelligence (AI) innovation programme.

The AI Innovation Program 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.

Read: UAE industrial exports value rises Dhs70bn in 3 years: MoIAT