The Banking Executive Magazine - April 2024

Emirates Development Bank EMIRATES DEVELOPMENT BANK DELIVERS RECORD INCREASE IN INDUSTRIAL GDP IMPACT Emirates Development Bank has un- veiled a record increase in total fi- nancing since the launch of EDB’s strategy in 2021 to Dh10.4 billion, bringing its cumulative contribution to the nation’s industrial GDP impact to Dh4.9 billion. The results were presented at a board meeting held this week to review the bank’s results for the period ending March 31, 2024. The Board meeting was led by Dr Sultan Ahmed Al Jaber, Chairman of the EDB Board and Minister of Industry and Ad- vanced Technology. EDB’s three-year performance results showcase transformative progress driven through strategic focus and support for the key priority sectors crucial to the UAE’s national devel- opment agenda. This included 665 per cent increase in cumulative fi- nancing to SMEs reaching a total of Dh 3.4 billion, as well as a surge of 2,942 per cent in large corporate loans reaching Dh 5.5 billion in cu- mulative financing in the three-year period. Financing through the bank’s credit guarantee scheme with partner commercial banks achieved a re- markable growth in financing, amounting to Dh1.4 billion. Results also revealed the bank’s con- tribution to the creation of 18,606 in- dustrial jobs in the UAE, reflecting EDB’s commitment to propelling job creation and business growth. These results underscore EDB’s sub- stantial impact on the nation’s prior- ity economic sectors, reflecting its pivotal role in the UAE’s vision for in- dustrial diversification and sustain- able growth. Al Jaber said: “As the key financial engine of economic growth and in- dustrial advancement in the UAE, Emirates Development Bank contin- ues to drive impactful contributions to non-oil GDP in line with the UAE leadership’s vision for future eco- nomic growth and diversification. The bank’s outstanding results over the past three years reflect its pivotal role in empowering businesses and enabling key development sectors which reinforce the foundation of a resilient and thriving economy. “EDB’s comprehensive financial and non-financial solutions support the full spectrum of businesses within the country, from growing SMEs to well- established corporations, across five priority sectors. EDB’s strategic initia- tives and robust financing support have significantly advanced our na- tional agenda, resulting in an extraor- dinary increase in industrial GDP impact, with Dh 10.4 billion in fi- nancing since the launch of the bank’s ambitious strategy in April 2021. These efforts are pivotal in em- powering over 13,500 companies by 2026, cementing our commitment to fostering a resilient, diversified, and competitive economy.” Ahmed Mohamed Al Naqbi, CEO of Emirates Development Bank, added: “Building on our achievements in 2023, we continue to strengthen our role as a pivotal force in the country’s economic landscape. Our focus re- mains on sectors that are crucial for the nation’s future development, driving forward innovative and sustainable financing solutions. Our remarkable achievements in the past three years were driven by a laser focus on driving a robust and diversified economy while ensuring private sector penetration and en- hancing our strategic offering from trade finance and working capital solutions to supply chain finance, cash management and FDI attrac- tion. He added: “The milestone achieve- ments and efforts from 2021 to Q1 2024 reflect EDB’s role as a progres- sive force channeling essential fi- nancing to support and accelerate the UAE’s economic development and diversification mandate. As we move forward, we continue to inno- vate and elevate our financing solu- tions to empower more and more businesses. EDB has a mandate to provide Dh30 billion in financing support to 13,500 companies within five sectors – manufacturing, food security, healthcare, technology, and renew- ables - by 2026. In line with this, 46 per cent of the Bank’s cumulative financing since the launch of its strat- egy have empowered the manufac- turing sector, reinforcing its crucial role in the UAE’s economy. The re- newables sector, vital for the UAE’s sustainable future, has received 21 per cent of EDB’s cumulative financ- ing, an indicator of the bank’s com- mitment to sustainable development. ISSUE 184 APRIL 2024 the BANKING EXECUTIVE 33 Mr. Ahmed Mohamed Al Naqbi, CEO, Emirates Development Bank