The «Industry and Advanced Technology» signed a memorandum of understanding with the «Emirates Development» to launch a package of financing solutions
Emirates Development Bank ... the "financing engine" for vital projects
The Memorandum of Understanding between the Ministry and the Bank was signed with the aim of promoting sustainable growth in vital sectors.
From the source
The Ministry of Industry and Advanced Technology signed a memorandum of understanding with the Emirates Development Bank, with the aim of promoting sustainable growth in sectors vital to the national economy, by providing financing solutions and banking services, on terms that ensure sustainable growth for all concerned parties.
Under this partnership, the bank will become the "financing engine" for a number of vital initiatives and projects. A financial portfolio of 30 billion dirhams will be allocated to finance priority industrial sectors, with the aim of supporting and financing 13,500 companies and large, small and medium enterprises.
The bank will launch a package of financing solutions to support the industrial and advanced technology sector, and make these financing solutions available to borrowers in the priority sectors.
The memorandum of understanding was signed by the Undersecretary of the Ministry of Industry and Advanced Technology, Omar Suwaina Al Suwaidi, and the CEO of the Emirates Development Bank, Faisal Aqeel Al Bastaki.
A quantum leap
The Minister of Industry and Advanced Technology, Chairman of the Board of Directors of the Emirates Development Bank, Dr. Sultan bin Ahmed Al Jaber, said that the strategy of the Ministry of Industry and Advanced Technology, and the strategy of the bank, aims to make a qualitative leap in the country's industrial sector in various vital fields and sectors, with a focus on future industries based on applications And the solutions of the Fourth Industrial Revolution, which constitutes a fundamental lever for the knowledge economy, especially the industries related to the sectors of renewable energy, biotechnology, advanced technology, industries related to artificial intelligence, and the space industries sector.
He added, "Our goal is to unify, coordinate and integrate efforts between institutions related to the industrial sector, to make the UAE the nucleus of advanced industry in the region." NBK during the next 10 years, within a comprehensive system of work to develop the sector, in a manner that meets the requirements of the UAE's accelerated development journey over the next 50 years, within phased milestones that take into account national priorities and focus on future industries.
Al-Jaber stressed that the Ministry of Industry and Advanced Technology will undertake the process of developing and empowering the industrial sector, while the Emirates Development Bank will act as the engine of financing for a number of vital initiatives and projects.
Innovative industries
For his part, the Undersecretary of the Ministry of Industry and Advanced Technology, Omar Suwaina Al-Suwaidi, said that the "300 billion project" - the strategy to stimulate the national economy through the development of the industrial sector - aims to build on the achievements made in the past decades, and to consolidate the gains through targeted investment in the industrial sectors of concern. Sustainable returns, in addition to exploring the future of the industrial sector in the country, within a central vision that seeks to enhance the economic attractiveness of the UAE as a center for pioneering and innovative industries, and to establish a competitive environment incubator for future industries, in addition to doubling the industrial sector’s contribution to the gross domestic product, and doubling the numbers related to this. The sector, in terms of national added value, industrial performance competitiveness index, employment rates, productivity, and exports, by 2031.
An investment fund
In turn, the CEO of the Emirates Development Bank, Faisal Aqeel Al-Bastaki, said that the bank's priorities in the next phase include enhancing the levels of financial support available to the economic and industrial sectors, through partnerships with UAE banks, to enhance the financial services provided to large, medium and small industrial companies, and to increase the volume of facilities. The directive provided by the bank to support priority sectors, starting this year, targeting sectors of the economy looking for services and financing solutions, launching a fund to invest in the capital of emerging, small and medium-sized companies with a value of one billion dirhams in 2022, in addition to supporting industrial companies that need financing and investment in Priority sectors.
Financing solutions
The areas of cooperation between the ministry and the bank include launching financing solutions that meet the needs of the priority sectors in industry and advanced technology. They include providing financing to encourage the introduction and application of advanced technology in the industrial sector, providing "structured finance" and capital investments, in addition to financing business expansion plans, and providing solutions. Green Finance.
The agreement also includes launching initiatives to stimulate the entrepreneurship system in the country and support its growth, including providing financing solutions to emerging, small and medium-sized companies, and supporting them through the provision of advisory and mentoring services, support for the Mohammed bin Rashid Innovation Fund, the loan program to support advanced technology, communication and coordination with entities Other financing, including joint capital funds, investment funds, sharing data, experience and specialized knowledge in the areas of cooperation covered by the agreement, granting a set of incentives and preferential conditions for companies registered in the ICV promotion program, and including these conditions in the bank’s services and products.
Advanced technology
The financing solutions stipulated in the agreement include financing advanced technology and related equipment, providing financing to modernize existing machinery and equipment, by purchasing advanced or more efficient equipment, and adopting the techniques and solutions of the Fourth Industrial Revolution, noting that this type of financing is currently provided by the bank, and structured financing. And capital investments, and support for industrial companies, by providing capital investments, or finding alternative sources of financing with the aim of restructuring the budget of these companies or supporting their growth, noting that this type of financing will be provided by the bank through a new subsidiary company, which will be announced soon.
Green finance
The agreement stipulated the provision of financing solutions to entities in alternative energy sources, or renewable energy, and those seeking to shift towards clean energy sources, which would contribute to achieving economic development based on environmental sustainability standards in the country.
As for financing business expansion plans, they include supporting national industries to develop their current businesses, or diversify them by adding new businesses.
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launch a
fund to invest in the
capital of
small companies and medium -
sized billion dirhams next year 2022.
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