Monday 5 April 2021
The Emirates Development Bank (EDB) Strategy to provide AED 30 billion in financial support to businesses and startups has been approved as a major step to drive the national economy.
Launched to support 'Operation 300bn', the EDB Strategy aims to leverage the bank’s role as a key driver of the national economy to provide the largest support network for the industrial sector.
Operation 300bn was launched in March 2021 as a 10-year strategy to more than double the industrial sector's contribution to the country's GDP, positioning the UAE as a global industrial hub by 2031.
Under the EDB Strategy, the bank has allocated a portfolio of AED 30 billion to support priority industrial sectors over a period of five years, which will contribute to financing more than 13,500 SMEs and creating 25,000 jobs.
Operation 300bn is a comprehensive national program aimed at enhancing the contribution of the industrial sector to the UAE’s sustainable economic growth. The Ministry of Industry and Advanced Technology and the Emirates Development Bank will extend support to large corporations, SMEs, and entrepreneurs across various industries including healthcare, infrastructure, food security, and technology.
The EDB will act as a financial engine for the national industrial strategy alongside its continued mandate to provide Emiratis with housing finance. The EDB Strategy will help accelerate industrial development and the adoption of advanced technology through dedicated financing programs and will also provide dedicated investment funds that will support entrepreneurs, startups, and SMEs.
EDB will also provide other tools including supply chain support, project financing, long-term financing, business accelerators, equity capital financing, and a business growth support fund.
EDB's priorities include establishing partnerships with UAE banks to extend financial services to SMEs and increasing its direct financing by 73% in 2021 to support priority sectors, while also focusing on underserved sectors with extensive financial solutions.
The bank will launch an AED 1 billion investment fund for startups and SMEs in 2022 targeting industrial companies in priority sectors that need financing and investment.