Emirates Development Bank announces AED1.91 billion contribution to GDP at 1st Board Meeting of 2022
ABU DHABI, 3rd April, 2022 – Emirates Development Bank (EDB) has announced record growth over the past 12 months.
The results, which were presented at the first EDB Board meeting of 2022, underline the success of the bank’s new strategy, which was launched in March 2021 to support UAE’s industrial development, accelerate the adoption of advanced technologies, and empower the growth of SMEs in the UAE.
As part of its strategy, EDB will also facilitate direct and indirect lending totaling AED30 billion by 2025, which is expected to support more than 13,500 companies.
The Board meeting was attended by Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of the EDB Board; Dr. Ahmad Belhoul Al Falasi, Minister of State for Entrepreneurship and SMEs and EDB Deputy Chairman; Younis Haji Khoury, Under-Secretary of the Ministry of Finance; Mohammed Saif Al Suwaidi, Director-General of the Abu Dhabi Fund for Development (ADFD) and Chairman of the Exports Executive Committee of the Abu Dhabi Exports Office (ADEX); Abdul Wahed, Mohammad Al Fahim, Chairman of NASDAQ Dubai; Mariam Saeed Ghobash, board member of EDB; Khalfan Jumaa Belhoul, CEO of Dubai Future Foundation; Najla Ahmed Al Midfa, CEO of Sharjah Entrepreneurship Centre; and Ahmed Al Kuttab, Director, The Executive Office Directorate at ADNOC Group; and Yousef Yaqoob Almansoori, Principal Legal Researcher at Dubai Police.
EDB’s Chief Executive Officer, Ahmed Mohamed Al Naqbi, presented the EDB’s year-one performance and key achievements to the Board. This included an AED1.91 billion contribution to the UAE’s GDP growth, direct and indirect financing of 1,350 SMEs across priority sectors, and the launch of a new Credit Guarantee platform, which was able to mobilise more than AED332 million of capital to SMEs.
Other key achievements of the Emirates Development Bank include the launch of a large corporate banking division in less than a year and a digital banking application focused on SMEs and start-ups. In its first 6 months, over 1000 digital banking accounts have been registered.
Dr. Al Jaber said, “Over the years, the UAE has achieved significant growth and progress across various sectors that are now actively contributing to the nation’s GDP growth. Through the Emirates Development Bank and its new strategy, we aim to ensure that the industrial sector keeps pace with that growth and achieves the aspirations of the UAE leadership. The Emirates Development Bank plays a critical role in realizing these aspirations by providing the necessary financial and non-financial support to SMEs and large corporations in key industrial sectors.”
He added, “In the first year under its new strategy, EDB was able to make a AED1.91 billion contribution to the UAE GDP, underlining its importance not just to the UAE’s industrial sector, but to the nation’s economic diversification, global competitiveness and long-term, sustainable economic growth.”
Dr. Al Falasi said, “The past 12 months were pivotal for EDB in its financial and strategic milestones. Just a few highlights include the financing of AED1.52 billion to projects in priority sectors and establishing partnerships with nine commercial banks, resulting in credit guarantees worth AED332 million. EDB has also implemented a number of new strategies and projects that will maintain its momentum. Our goal now is to continue to enhance our role in accelerating growth of the economy in our five key sectors – manufacturing, technology, healthcare, food security and infrastructure.”
Over the past 12 months, to help accelerate its strategy and attract FDI into the UAE, EDB has signed Memorandums of Understanding with 26 partners, including banks, public and private sector entities, chambers of commerce and free zones. In an effort to ensure proactive stakeholder outreach, EDB has also conducted more than 16 roadshows and industry events.
In order to ensure that its financing is focused towards businesses and projects that maximise economic impact for the UAE, EDB has created a customised, proprietary ‘Development impact Scorecard’, which has helped maximise the industrial development impact of the bank’s portfolio.
Commenting on EDB’s record 12-month performance, Ahmed Al Naqbi said, “EDB is committed to creating a supportive environment for businesses to help build a more prosperous future for the UAE and cement the nation’s position as a destination where businesses can thrive. The growth achieved by EDB in the past year is a result of the unwavering support of the EDB Board and testament to the strategy that was approved 12 months ago.”
Al Naqbi added, “We will continue to drive forward our efforts to support priority sectors and increase our value-added financing support for projects in technology, healthcare, food security, manufacturing and infrastructure as we look to the year ahead.”