The Emirates Development Bank (EDB), a key financial enabler of the country’s economic diversification and industrial transformation agenda, held its fifth Board meeting today to discuss the bank’s progress in its strategy roadmap for the first six months of 2021.
The EDB Board reviewed the Bank’s achievements in the past six months including the launch of its credit guarantee and co-lending program with five partner banks; partnership activation with the Ministry of Industry & Advanced Technology, the onboarding of anchors to the National Supply Chain Finance platform, and the successful issuance of its second bond of AED 750 million which was oversubscribed four times.
These initiatives are part of EDB’s strategy to support the UAE’s industrial growth, adoption of advanced technology, enhancement of the role of SMEs and promotion of innovation and entrepreneurship through its tailored suite of products and services.
His Excellency Dr Sultan Ahmed Al Jaber, Chairman of the EDB Board and Minister of Industry and Advanced Technology, said: “EDB has taken strong strides in its strategic roadmap to support the country’s economic diversification efforts in line with the vision of the country’s wise leadership. The steps taken in such a short span of time, since the launch of our new strategy, augurs well for our long-term plans as a key contributor to the achievement of our leadership’s objectives.”
The Board Meeting was attended by His Excellency Dr Ahmad Belhoul Al Falasi, EDB Deputy Chairman and Minister of State for Entrepreneurship and SMEs, H.E. Younis Haji Khoury, Undersecretary of the Ministry of Finance, H.E. Mohammed Saif Al Suwaidi, H.E. Abdul Wahed Mohammad Al Fahim, H.E. Mariam Saeed Ghobash, H.E. Khalfan Jumaa Belhoul, H.E. Najla Ahmed Al Midfa, and H.E. Ahmed AlKuttab.
At the meeting, the Board also discussed the plan for H2 2021 with key initiatives to deploy assets in the developmental space, as well as to further the digitization agenda across the Bank.
Ahmed Mohamed Al Naqbi, CEO of EDB, said: “We have made considerable progress in H1 of 2021. Our partnerships with government entities, partner banks and anchor buyers are significant milestones in our journey as they highlight our commitment to provide an all-encompassing business ecosystem to SMEs and unlock immense potential for them. As we progress through the rest of the year, our immediate priority is to ramp up efforts so that EDB delivers best-in-class solutions to a wider customer base.”
In the first half of 2021, EDB has signed credit guarantee and co-lending programs for SMEs in the UAE with five partner banks, including Commercial Bank of Dubai, RAKBANK, National Bank of Umm Al Qaiwain [NBQ], Mashreq Bank, and the First Abu Dhabi Bank [FAB]. As part of the MoUs, the partner banks can offer up to AED 10 million financing to a SME, and 50% of the facility amount will be either guaranteed or co-lent by EDB.
Moreover, EDB also joined forces with the Sharjah Chamber of Commerce and Industry to foster the development and growth of UAE-based manufacturers, exporters and SMEs through financial support. As part of the agreement, EDB will extend direct and indirect lending support, equity funding for SMEs and startups in the priority sectors as well as non-financial support in the form of mentorship and business guidance.