Emirates Development Bank contributes Dhs1.91bn to UAE’s GDP

Emirates Development Bank (EDB) said that as part of a new strategy that it launched in March 2021, it has contributed Dhs1.91bn to the UAE’s GDP growth.

The strategy included direct and indirect financing of 1,350 SMEs across priority sectors, and the launch of a new Credit Guarantee platform, which mobilised more than Dhs332m of capital to SMEs, according to news agency WAM.

The figures were released during a recent EDB Board meeting. The new strategy focuses on the growth and development of large corporations and SMEs in five key sectors: manufacturing, advanced technology, infrastructure, healthcare and food security. EDB has said that it will facilitate direct and indirect lending totaling Dhs30bn by 2025, which is expected to support more than 13,500 companies.

EDB’s Chief Executive Officer, Ahmed Mohamed Al Naqbi, said at the board meeting that EDB had launched a large corporate banking division in less than a year and a digital banking app focused on SMEs and start-ups. In its first six months, over 1000 digital banking accounts were registered.

“The past 12 months were pivotal for EDB in its financial and strategic milestones. Just a few highlights include the financing of Dhs1.52bn to projects in priority sectors and establishing partnerships with nine commercial banks, resulting in credit guarantees worth Dhs332m. Our goal now is to continue to enhance our role in accelerating growth of the economy in our five key sectors” said Dr. Ahmad Belhoul Al Falasi, Minister of State for Entrepreneurship and SMEs and EDB deputy chairman.

Over the past 12 months, the bank said that it signed MoUs with 26 partners, including banks, public and private sector entities, chambers of commerce and free zones.

In order to ensure that its financing is focused towards businesses and projects that maximise economic impact for the UAE, EDB created a customised, proprietary Development impact Scorecard.

In July last year, EDB which is completely owned by the UAE government listed a $750m bond on Nasdaq Dubai. The five-year bond issuance reportedly witnessed strong demand from investors, with 34 per cent of that demand coming from MENA markets, 36 per cent from European markets, 28 per cent from Asian markets and 2 per cent from the US offshore market.

Read: Emirates Development Bank lists $750m bond on Nasdaq Dubai

In November last year, it revealed that it had allocated a Dhs700m financing package to the UAE’s industrial sector since the beginning of the year.

Read: Emirates Development Bank lends over Dhs700m to UAE’s industrial sector