FAB to provide $1.36bn in financing solutions to investors
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UAE’s FAB to provide $1.36bn in financing solutions to investors

UAE’s FAB to provide $1.36bn in financing solutions to investors

The bank will offer competitive financing solutions to support the adoption of advanced technology in the industrial sector

FAB allots $1.3bn in financing

First Abu Dhabi Bank (FAB) has partnered with the Ministry of Industry and Advanced Technology (MoIAT) to provide financing solutions to the tune of $1.36bn (Dhs5bn) to local and foreign investors in the industrial and advanced technology sector.

The deal, which is supporting the Make it in the Emirates initiative, aims to support small and medium-sized enterprises (SMEs) by offering industry-related advice, data sharing, and collaboration expertise.

FAB will offer competitive financing solutions to support the adoption of advanced technology in the industrial sector. The financing solutions include structured financing, capital investments, business expansion financing, green financing and support for startups and SMEs.

The Abu Dhabi-based lender will also provide industry-specific financial advisory services to cater to the unique needs of these sectors.

Through the ‘Make it in the Emirates’ initiative, MoIAT ensures competitive financing solutions with favourable profit rates and flexible repayment periods to promote investments in the country’s industrial sector.

“In offering flexible financing solutions to companies in the industrial and advanced technology sectors, including startups, emerging companies and SMEs, we aim to provide key enablers and incentives that drive the growth and competitiveness of the industrial sector,” said Omar Al Suwaidi, Under-Secretary of the MoIAT.

Al Suwaidi underscored the importance of competitive financing solutions, noting that they not only facilitate the development of industrial projects but also encourage entrepreneurs and companies to utilise innovative financing mechanisms.

Meanwhile, FAB’s involvement in the initiative will facilitate the introduction of customers to the partnership and encourage the provision of industrial projects and financing solutions for partnership projects.

“By working with our partners MoIAT, FAB will deploy financial strength, innovative solutions, and trusted expertise to help unleash the UAE’s manufacturing potential and reinforce the country’s status as a global manufacturing hub,” said Hana Al Rostamani, group CEO of FAB.

FAB champions sustainable growth

Meanwhile, in February Al Rostamani said FAB facilitated more than $9bn worth of sustainable projects in 2022 as part of its target to disburse $75bn by 2030.

The bank revealed that more than half of its bond issuances in 2022 were in a ‘green’ format. It has also grown its range of sustainable accounts, loans and finance offerings to support customers to achieve their sustainability goals.

The banking group reported a 70 per cent year-on-year (YoY) increase in first-quarter net profit driven by sustained momentum across all business segments and the bank’s ability to navigate evolving market conditions.

Its net profit in the first quarter was $1.06bn (Dhs3.9bn), excluding the Dhs2.8bn from the sale of a stake in its payments business Magnati in the first quarter of 2022, translating to an annualised return on tangible equity (RoTE) of 18.5 per cent.

FAB’s operating income jumped 51 per cent YoY to reach Dhs6.7bn compared to Dhs4.5bn in the first quarter of 2022, driven by strong growth in both net interest and non-interest income.

Impairment charges in Q1 2023 were at Dhs798m, up 74 per cent from a year earlier implying an annualised cost of risk of 62 basis points (bps).

FAB said its international operations remain a key contributor to the group’s liquidity with customer deposits soaring by 27 per cent or Dhs41bn in a single quarter. Similarly, revenues from international operations represent 23 per cent of FAB’s Q1 2023 group revenues.

Read: UAE’s FAB launches supply chain finance in Saudi Arabia

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