Tue 18-10-2022 18:51 PM
ABU DHABI, 18th October, 2022 (WAM) -- Emirates Development Bank (EDB) held its Board meeting to review its results for the period ending 30th September, 2022.
The Board discussed the progress being made in executing the Bank’s strategy, which aims to support and empower the implementation of the UAE’s industrial development strategy, facilitate the adoption of advanced technology, empower the growth of SMEs, and encourage start-ups and innovation.
Among the major achievements of the Bank over this period was the approval of AED 4.4 billion in loans during the first 9 months of 2022, representing a 59 percent increase over the previous quarter and a 588 percent increase compared to the same period last year.
EDB plays a pivotal role in supporting the national economic agenda by offering indirect and direct financing to start-ups, SMEs and large corporates sponsoring industrial projects across five priority sectors which include manufacturing, infrastructure, advanced technology, food security, and healthcare.
On aggregate this financing boosted the Bank’s contribution to UAE GDP to AED2.6 billion as of M9 2022, a 625 percent increase compared to the same period of 2021.
A total of AED 1,291 million in loans was approved to SMEs for M9 2022, representing an 86 percent increase over the same period of 2021. This comprised AED 806 million in direct financing and AED 485 million in indirect financing through EDB’s credit guarantee scheme with partner commercial banks.
A total of AED 3.1 billion in loans was approved for large corporates. EDB’s Large Corporate division has been supporting UAE’s national priority sectors with projects in key areas including data centres, water desalination, transportation, hospitals, manufacturers, specialised logistics, among others.
The UAE industrial strategy aims to boost the GDP contribution of the industrial sector from AED 133 billion to AED 300 billion by 2031. As the nation’s development bank, economic impact is what drives EDB’s financing activities, contributing to an estimated AED 2.6 billion in non-oil GDP in the UAE YTD 2022. As part of its commitment to fostering homegrown innovation, EDB provided a total of AED 3 billion in financing to Emirati-owned businesses.
The growth in the Bank’s lending programs was largely supported by the continuous enhancement of its digital capabilities. EDB digitally on-boarded 1,377 customers through its digital Business Banking platform YTD 2022. Through its mobile application, the account opening process is completed within 48hours. Moreover, EDB recently launched its digital lending programme in partnership with Beehive, which approves loans of up to AED 5 million within five days for SMEs. In conjunction with EDB’s non-financial support programmes, including its ‘Business Lab’ education and advisory services to help advance financial literacy and creditworthiness, EDB remains fully committed to supporting micro and SMEs in the UAE with innovative and unique solutions.
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of EDB, said, “In line with the wise leadership’s directives, EDB works under the umbrella of the comprehensive vision for the national economy that seeks to position the country as a global hub for industry, advanced technology and the industries of future, and guarantee our industrial, food, and technological security. The impressive results of the first 9 months of 2022 that EDB has yielded so far are a testament to the Bank’s efforts in supporting the UAE’s economic diversification agenda, contributing to the UAE GDP and ultimately, building a more sustainable economic future for the UAE.”
Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB, said, “Emirates Development Bank continues to execute its transformational agenda to foster a progressive and resilient economy in the UAE. Over the last 9 months we have approved over AED 4.4 billion in loans to start-ups, SMEs, and large cap businesses as part of our commitment to providing AED 30 billion in financing by 2026 to develop and diversify the UAE economy.
“Looking ahead, we remain focused on continuing to provide financial support at attractive financing rates to all our customers. Thanks to the prudent support of the UAE government, EDB is well positioned to further progress our developmental strategy, scale up the Bank’s financing activities across our five strategic sectors, and ultimately increase our economic impact across the nation.”