Emirates Development Bank (EDB) has ramped up its support for the UAE’s business community, confirming it is now deploying an average of AED 20 million ($5.5 million) in financing every day. The initiative is designed to provide immediate liquidity to micro, small and medium enterprises (MSMEs) across the country’s most vital sectors.
Quick Facts
- Daily financing: AED 20 million ($5.5M)
- Focus: Five key priority sectors
- Target: UAE’s micro, small, and medium enterprises
A Direct Response to Market Agility Needs
The state-backed lender stated the daily financial support is intended to address urgent liquidity needs, ensuring businesses can continue operations without disruption. This move highlights a strategy focused on speed and direct impact.
“When global supply chains tighten, speed is everything. Deploying AED20 million a day is our direct answer to the market’s need for agility and certainty,” said Ahmed Mohamed Al Naqbi, CEO of Emirates Development Bank. He added that EDB is channeling essential working capital directly into the accounts of businesses that need it most.
Fueling UAE’s Strategic Sectors
The funding is not a broad-stroke approach but is specifically directed towards five priority sectors critical to the UAE’s long-term economic vision. These sectors include manufacturing, advanced technology, healthcare, renewables, and food security.
To facilitate this rapid deployment, EDB has liberalised its liquidity policy, significantly reduced its loan approval times, and updated its funding and capital frameworks to better align with the current economic environment.
Driving Billions in Non-Oil GDP Growth
This aggressive daily financing is part of a wider strategy that has already shown significant results. Since renewing its strategy in 2021, EDB has added more than AED 11 billion to the UAE’s non-oil GDP.
The bank has also been instrumental in facilitating AED 75 billion in industrial capital expenditure, underscoring its central role in the nation’s industrial development and economic diversification agenda.
Part of a Wider UAE Economic Support Push
EDB’s initiative is part of a larger pattern of economic support from UAE institutions. Last week, Dubai International Financial Centre (DIFC) introduced a package of temporary measures to help businesses navigate the economic consequences of the Iran war.
These moves follow the UAE central bank’s decision in March to loosen liquidity rules and expand funding access for lenders, as well as Dubai’s launch of an AED 1 billion support package that included deferrals of government fees.
About Emirates Development Bank
Emirates Development Bank (EDB) is a UAE federal financial entity established to support the country’s economic diversification and industrial transformation agenda. It provides financial solutions to businesses in key priority sectors, contributing to sustainable economic development and driving the growth of the national economy.
Source: AGBI
