UAE Federal Government fully-owned financial entity, Emirates Development Bank (EDB), has signed a Memorandum of Understanding (MoU) with the country’s foreign aid agency, Abu Dhabi Fund for Development (ADFD), to offer novel financing and banking solutions for companies.
The agreement was signed by Mr. Ahmed Mohammed Al Naqbi, CEO of EDB, and Mr. Mohammed Saif Al Suwaidi, Director General of ADFD.
Under the MoU, EDB will provide innovative financing and banking solutions, credit guarantees and joint lending for the beneficiaries of ADFD’s programs and thus support the economic diversification in the UAE and promote overall sustainable growth and exports.
The MoU is aligned with the common objectives of both EDB and ADFD that are aimed at achieving sustainable development for large companies as well as the small and medium enterprises (SMEs) to support the overall national economic goals.
“Abu Dhabi Fund for Development has a long list of beneficiaries operating in various priority sectors, which are part of the EDB’s strategy, particularly those in infrastructure, manufacturing and advanced technology. The agreement will help us gain mutual access to these entities to support their goals and help them achieve growth through financing programs, as well as through training and development plans and the exchange of industrial knowledge. As the financial driver of the “Operation 300bn” strategy, under the supervision of the Ministry of Industry and Advanced Technology, EDB aims to reach the widest possible base of small and medium enterprises and we look forward to joint achievements in the coming period.”
As part of the agreement, EDB and ADFD will collaborate in areas including the exchange of data between the two parties, developing a plan to find financing opportunities for the beneficiaries of ADFD through joint and large projects financing, cooperation through the ADFD credit guarantee and joint lending programs and EDB’s receivables’ financing applications.
Further, the two parties will cooperate in areas of common interests such as supporting local entrepreneurship, economic development and community cooperation, and collaborate in facilitating financing for entities in the UAE’s industrial sector, which fall under the list of beneficiaries of ADFD, implementing joint programs in the fields of entrepreneurship development, awareness and industry knowledge-sharing through cross-promotion of products and services across their marketing and social media channels.
Commenting on the MoU, Mr. Al Suwaidi said, “We will join forces to achieve national interests and support large companies and SMEs benefiting from the Fund’s financing, in a way that contributes to the national economy and achieve sustainable economic development, in line with future plans aimed at strengthening the position of UAE companies and expanding their business to reach global markets.”
As part of EDB’s strategy, which was unveiled earlier this year, the bank has allocated $8.1 billion as a direct and indirect financial bundle to finance SMEs, startups, and corporates in priority industrial sectors. Within the ambit of this strategy, EDB seeks to contribute $2.7 billion to the country’s GDP, support more than 13,500 companies, and create 25,000 jobs over the next five years.