ABU DHABI – Emirates Development Bank (EDB) held its board meeting to review the results of the first half of 2022 and monitor the progress of its new strategy which was launched in April 2021 to support the UAE’s industrial development, accelerate the adoption of advanced technologies, and fostering 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, in the presence of Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technologies and Chairman of the EDB Board of Directors.
Among the key achievements of the Bank, which is one of the key financial drivers of 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 in the first half of the year. 2022. This represents a 418% increase from the AED 464 million approved since the launch of the Bank’s new strategy in 2021. The increase in industrial financing has increased the Bank’s contribution to the UAE’s national GDP to AED1.9 billion in the first half of 2022, an increase of 356% from AED425 million from fiscal year (FY) 2021.
In line with its commitment to financial inclusion and improving the bankability of SMEs, EDB was also able to raise AED351 million of capital in the first half of 2022 to support SMEs through its guarantee program credit, an increase of 109% from the AED168 million deployed in 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 to start their business by providing a business bank account and IBAN number within 48 hours, then offering a full range of fast, secure and 24-hour banking services, including requesting and receiving funding .
During the meeting, the Board also discussed its outlook and plan for H2 2022 with key initiatives to deploy assets in vital sectors, as well as to advance the digitization agenda across the Bank.
The initiatives deployed by EDB are part of its new strategy to support the UAE’s industrial growth, adoption of advanced technologies, strengthening the role of SMEs and promoting innovation and entrepreneurship through its range bespoke products and services. According to EDB’s proprietary Developmental Impact Scorecard, which was created to ensure that the Bank’s financing is focused on companies and projects that maximize economic impact for the UAE, 66% of transactions from EDB have received a development score of at least 4 on a scale of 0-6, reflecting their positive contribution to the overall economy of the UAE and their immense impact on development.
“These results demonstrate 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, technology and the 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% compared to the whole of 2021, highlighting both the potential of the UAE’s industrial sector and the ability of the bank to raise finance to support it,” Dr Al Jaber said.
Ahmed Mohamed Al Naqbi, CEO of EDB, said, “We have seen tremendous progress in the first half of 2022. We have approved loans of AED 2.4 billion to the UAE’s industrial sector, five times the amount we approved in 2021, underscoring our commitment to the growth of the sector and the potential it holds.”
“Over the past period, we have worked tirelessly to strengthen our capability partnerships, share our vision with industry leaders, and cement our role in driving the national economy to greater heights and consolidating its pioneering position. As we look forward to the rest of this year, we remain committed to providing a comprehensive business ecosystem for SMBs and startups, as well as to redouble our efforts to provide the best solutions to a growing customer base. wide,” he added.
The Board also welcomed news from S&P Global Ratings affirming an “AA-” credit rating with a “stable outlook”.