- EDB approved AED3.15 bn in financing for the manufacturing sector to support industrial transition since the launch of the UAE Industrial Strategy ‘Operation 300bn.’
Abu Dhabi, United Arab Emirates, 2 October 2023: Emirates Development Bank (“EDB” or “the Bank”), the key financial engine of UAE economic development and industrial advancement, is presenting its developmental financing solutions to more than 160,000 delegates from 160 countries at ADIPEC 2023.
Under the patronage of His Highness Sheikh Mohamed Bin Zayed Al Nahyan, President of the United Arab Emirates, ADIPEC 2023 the world’s largest energy industry gathering, is hosted by ADNOC in Abu Dhabi from 2 to 5 October under the theme of ‘Decarbonizing. Faster. Together.’
ADIPEC is bringing together the best minds in energy and industrial manufacturing with the greatest technological advancements to accelerate the decarbonization of the energy sector and the industries it serves.
With energy transition, net zero and industrial decarbonization taking center stage at the event’s discussions, EDB is using the show to present its financing solutions to drive support for the UAE’s energy transition, industrial growth and economic diversification. The Bank allocated AED30 billion to support 13,500 SMEs in five priority sectors: Manufacturing, Renewables, Technology, Healthcare, and Food Security. Direct support of the manufacturing sector is a key element of that mission. Since the launch of the UAE Industrial Strategy ‘Operation 300bn’, EDB approved a total of AED3.15 billion in financing for the nation’s manufacturing industry.
Ahmed Mohamed Al Naqbi, Chief Executive Officer of Emirates Development Bank, said: “ADIPEC 2023 stands at the heart of global dialogue and collective sector action to decarbonize faster and future-proof the world’s energy system. We are joining world energy and industry leaders to highlight the need for greater investment and reliable financing solutions to enable the transition to renewables and support the decarbonization of hard-to-abate industries. Renewables has become a key focal area this year, the UAE Year of Sustainability, and the year the nation hosts the crucial COP28 climate talks. Our support for businesses and projects addressing the challenges and opportunities in the renewables sector solidifies the nation’s position as a pioneering global hub for clean energy technology and manufacturing. We are also cultivating a favorable business environment through bespoke financing solutions for businesses working in the renewables sector and those willing to shift to solar energy to drive further efficiencies in their operations.”
EDB has played a pivotal role as the Initial Mandated Lead Arranger (IMLA) and Senior Hedging Bank, collaborating with other prominent financial institutions, in the financing of the substantial AED8.8 billion sustainable water project between ADNOC and TAQA, in partnership with the consortium of Orascom and Metito. The project’s aim is to provide a significant 110 MIGD nano-filtered seawater source, along with an extensive network of distribution pipelines, dedicated to supporting ADNOC’s onshore operations.
“This transaction shows how the transformative power of finance is an indispensable force steering the nation towards a greener, more resilient energy paradigm. EDB remains committed to supporting the nation’s sustainability drive through supporting such immense projects,” added Al Naqbi.
EDB offers flexible financing, a patient debt approach and tailored financing solutions that can extend up to 100% loan-to-value (LTV) ratios, offer longer tenors of up to 15 years, and include grace periods of up to two years. For renewable energy projects in the UAE, the Bank can offer finance up to 100 percent of the project value with a maximum tenor of 15 years and a two-year grace period. EDB has recently launched a new first of its kind Solar Energy Finance Program which will allocate AED100 million to bolster the adoption of green energy solutions, focusing on solar energy initiatives.
Al Naqbi will participate in a key strategic panel: ‘Financing industries of the future: the role of SMEs in driving economic progress’ at ADIPEC on Tuesday, 3 October. He will be joined by H.E. Raja Al Mazrouei, CEO, Etihad Credit Insurance (ECI); Dr. Palat Menon, Founder and CEO, AstraGene; Fahmi Al Shawwa, CEO, IMMENSA; and Haitham Al Subaihi, Acting Executive Director of Business Development & Promotion, Abu Dhabi Investment Office (ADIO). Together they will spotlight the correlation between capital financing trends and advanced manufacturing in the UAE and globally, and how supporting SMEs can transform an industrial sector and deliver competitive economic growth.
In addition, the EDB’s Chief Executive Officer will participate in two CEO Roundtables organized by the Ministry of Industry and Advanced Technology (MoIAT) on the sidelines of ADIPEC. The MoIAT Germany Roundtable on 3 October and the MoIAT Russia Roundtable on 4 October will be chaired by H.E. Omar Al Suwaidi, Undersecretary of MoIAT and will convene representatives of UAE government entities and leading energy and manufacturing industry companies from the UAE and each of the two countries to discuss future investment opportunities and prospects of collaboration to drive energy transition and new technologies for industrial decarbonization.
From its booth M08 at Hall MI (Manufacturing & Industrialisation), EDB will showcase its portfolio of financing solutions and bespoke programs to enable the UAE’s economic development and national security strategies and support its commitment to achieve net-zero energy emissions by 2050.
