UAE to create 25,000 jobs in vital sectors over next five years
Under the bank's strategy, more than 13,500 SMEs will be financed.
As many as 25,000 jobs are being created to support priority industrial sectors over the next five years.
It comes as His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, announced a Dh30 billion initiative to boost the national economy on Monday.
Launched to support Operation 300bn, the Emirates Development Bank 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.
Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Chairman of EDB, presented the bank’s strategy pillars and objectives, under which more than 13,500 SMEs will be financed.
He noted that the launch of the strategy is in line with the Industrial Strategy 2021-2031 objectives.
“Operation 300bn is a comprehensive national programme aimed at enhancing the contribution of the industrial sector to the UAE’s sustainable economic growth," he said.
The ministry and bank will collaborate closely to extend support to large corporations, SMEs and entrepreneurs across various industries including healthcare, infrastructure, food security and technology, he added.
Al Jaber noted that EDB will act as a critical financial engine for Operation 300bn, alongside its continued mandate to provide Emiratis with housing finance.
In addition to providing flexible housing solutions, EDB will complement its offering to companies and entrepreneurs with training, counselling and guidance for UAE citizens and residents.
“EDB will provide other tools including supply chain support, project financing, long-term financing, business accelerators, equity capital financing, and a business growth support fund,” Al Jaber explained.
He added that maintaining and furthering sustainable economic development in the post-Covid-19 era is a priority for the UAE’s leadership.
“Operation 300bn is the result of a tremendous collaborative effort with our stakeholders, which has in turn enabled and allowed us to develop practical, integrated solutions that we can begin implementing right away,” he said.
The way forward
Al Jaber stressed that in the next phase, EDB will step up the financial support provided to the industrial sector.
Its priorities include establishing partnerships with UAE banks to extend financial services to small and medium industrial companies and increasing its direct financing by 73 per cent in 2021 to support priority sectors, while also focusing on underserved sectors with extensive financial solutions.
The bank will also launch a Dh1 billion investment fund for start-ups and SMEs in 2022 and target industrial companies in priority sectors that need financing and investment.
Since its inception, the bank has supported 550 companies, allocating Dh1.8 billion in business loans to SMEs.
The bank also provided housing loans worth Dh2.4 billion, besides its $750 million five-year Senior Bond under a $5 billion programme.