Banking & Finance UAE approves $1.2bn loans for industrial development By Pramod Kumar October 19, 2022 Unsplash.com New orders in the manufacturing sector have risen for the third month in a row and are 7.3% higher than in November 2022 The state-run Emirates Development Bank (EDB) approved AED 4.4 billion ($1.20 billion) in loans during the first nine months of 2022, up 600 percent year-on-year (YoY), state-owned news agency WAM reported. The bank plays a pivotal role in supporting the country’s economic agenda by providing indirect and direct financing to startups, small and medium-sized enterprises (SMEs) and large corporates in industrial projects across five sectors: manufacturing, infrastructure, advanced technology, food security, and healthcare. EDB’s contribution to UAE GDP reached AED 2.6 billion as of September 30, 2022, rising 625 percent year-on-year. A total of AED 1.29 billion in loans was approved to SMEs, an increase of 86 percent year-on-year. This comprised AED 806 million in direct financing and AED 485 million in indirect financing through EDB’s credit guarantee scheme with commercial banks. Nearly AED 3.1 billion in loans was approved for large corporates, the report said. EDB’s large corporate division has supported the UAE’s national priority sectors such as data centres, water desalination, transportation, hospitals, manufacturers, specialised logistics, etc. Moreover, the bank has provided a total of AED 3 billion in financing to Emirati-owned businesses. The UAE industrial strategy seeks to boost the GDP contribution of the industrial sector from AED 133 billion to AED 300 billion by 2031. The bank on-boarded 1,377 customers through its digital business banking platform year-to-date 2022. Ahmed Mohamed Al Naqbi, chief executive officer of EDB, said the bank approved over AED 4.4 billion in loans to startups, SMEs, and large-cap businesses as part of its commitment to providing AED 30 billion in financing by 2026 to develop and diversify the UAE economy.