Sheikh Mohammed launches Dhs30bn strategic programme to stimulate vital sectors

Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, has approved the Emirates Development Bank (EDB) strategy, which will include a financing portfolio of Dhs30bn.

أطلقنا البرنامج الاستراتيجي الجديد لمصرف الإمارات للتنمية … محفظة تمويلية بقيمة ٣٠ مليار درهم لتحفيز مجموعة من القطاعات الحيوية ذات الأولويات الوطنية .. الهدف تمويل ١٣٥٠٠ شركة جديدة في هذه القطاعات خلال الأعوام القادمة .. pic.twitter.com/orNmcgT4yf

— HH Sheikh Mohammed (@HHShkMohd) April 5, 2021

Launched to support “Operation 300bn”, the EDB Strategy aims to leverage the bank’s role to provide the largest support network for the industrial sector. The strategy will support businesses and startups to drive the national economy.

Sheikh Mohammed bin Rashid had launched Operation 300bn last month as a 10-year comprehensive strategy to more than double the industrial sector’s contribution to the country’s GDP.

Read: Sheikh Mohammed launches ‘Operation 300bn’ strategy to foster UAE industrial sector

Supporting Operation 300bn Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology and chairman of EDB, presented the bank’s strategy pillars and objectives. The Bank allocated a portfolio of Dhs30bn to support priority industrial sectors over a period of five years, which will contribute to financing more than 13,500 SMEs and creating 25,000 jobs.

He said: “Operation 300bn is a comprehensive national programme aimed at enhancing the contribution of the industrial sector to the UAE’s sustainable economic growth. Through close collaboration, the Ministry of Industry and Advanced Technology and the Emirates Development Bank will extend support to large corporations, SMEs and entrepreneurs across various industries including healthcare, infrastructure, food security and technology.”

“The new EDB strategy will help accelerate industrial development and the adoption of advanced technology through dedicated financing programmes and will also provide dedicated investment funds that will support entrepreneurs, startups and SMEs.”

استعرض معالي الدكتور سلطان بن أحمد الجابر، وزير الصناعة والتكنولوجيا المتقدمة، رئيس مجلس إدارة مصرف الإمارات للتنمية، محاور الاستراتيجية وأهدافها، موضحاً بأنها تدعم دور مصرف الإمارات للتنمية كمحرك رئيسي لعملية تطوير الاقتصاد الوطني pic.twitter.com/9QApcQTfnu

— UAEGOV (@uaegov) April 5, 2021

In addition to providing flexible housing solutions, EDB will complement its offering to companies and entrepreneurs with training, counselling and guidance for UAE citizens and residents.

“EDB will provide other tools including supply chain support, project financing, long-term financing, business accelerators, equity capital financing, and a business growth support fund,” Al Jaber added.

In the next phase, EDB will step up the financial support provided to the industrial sector. Its priorities include establishing partnerships with UAE banks to extend financial services thso small and medium industrial companies and increasing its direct financing by 73 per cent in 2021 to support priority sectors, while also focusing on underserved sectors with extensive financial solutions.

The bank will also launch a Dhs1bn investment fund for startups and SMEs in 2022 and target industrial companies in priority sectors that need financing and investment, official news agency WAM reported.