ABU DHABI – The Emirates Development Bank (EDB) held its board meeting to review the results for the first half of 2022 and monitor the progress of its new strategy which was launched in April 2021 to support the industrial development of the United Arab Emirates, accelerate the adoption of advanced technologies, and boost the growth of SMEs.
The Board meeting was held for the first time at the Bank’s new headquarters in Abu Dhabi, located in the Mubadala Tower, and was attended by Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, and Chairman of the Board of Directors of EDB.
Among the major achievements of the Bank, which serves as one of the key financial drivers for the UAE’s economic diversification and industrial growth agenda, is the mobilization of AED 2.4 billion in loans to the UAE’s industrial sector United in the first half of 2022. This represents 418 percent. increase compared to the AED 464 million approved since the launch of the Bank’s new strategy in 2021. Increased industrial financing has increased the Bank’s contribution to the UAE’s national GDP to AED 1.9 billion in from the first half of 2022, up 356% from AED 425. million starting in fiscal year (FY) 2021.
Delivering on its commitment to financial inclusion and improving the bankability of SMEs, EDB was also able to mobilize AED 351 million in capital in the first half of 2022 to support SMEs through its credit guarantee scheme, 109 percent more than the AED 168 million deployed during 2021. These efforts are supported by the delivery of EDB’s digital solutions, including its new digital banking application, which enables SMEs and start-ups get their business off the ground by providing a business bank account and IBAN within 48 hours and then offering a wide range of fast, secure and 24/7 banking services such as applying for and receiving funding.
During the meeting, the Board also discussed its outlook and plan for the second half of 2022 with key initiatives to deploy assets in vital sectors as well as drive the digitalization agenda across the Bank.
The initiatives rolled out by EDB are part of its new strategy to support the UAE’s industrial growth, adoption of advanced technology, enhancing the role of SMEs and promoting innovation and entrepreneurship through its customized set of products and services. According to EDB’s Developmental Impact Scorecard, which was created to ensure that the Bank’s funding is focused on companies and projects that maximize the UAE’s economic impact, 66% of EDB’s transactions received a development score of at least 4 on a scale of 0-6, reflecting their positive contribution to the UAE economy and immense impact on development.
“These results are a testament to the Bank’s progress in supporting the UAE’s economic diversification agenda and increasing its global competitiveness. By expanding access to capital, the Bank is helping to develop a global hub for industry, advanced technology and industries of the future. In the first half of 2022, we were able to accelerate this mission and increase our contribution to the national GDP by 356 percent compared to the whole of 2021, underscoring both the potential of the sector UAE industrial sector such as the bank’s ability to mobilize finance to support it,” said Dr Al Jaber.
Ahmed Mohamed Al Naqbi, CEO of EDB, noted: “We have witnessed great progress in the first half of 2022. We have approved loans of AED 2.4 billion to the industrial sector in the UAE, which is five times the amount that we approved during 2021, highlighting our commitment to the growth of the sector and its potential.”
“Over the past period, we have worked tirelessly to strengthen our capacity partnerships, share our vision with industry leaders and consolidate our role in driving the national economy to greater heights and consolidate its pioneering position. As we look forward to the rest of this year, we remain committed to providing a comprehensive business ecosystem for SMEs and startups, as well as redouble our efforts to deliver the best solutions to a wider customer base,” he added.
The Council has also received news from S&P Global Ratings affirming a credit rating of ‘AA-‘ with a ‘stable outlook’.