DUBAI, 23rd November, 2021 (WAM) -- Emirates Development Bank [EDB], a key financial enabler of the country's economic diversification and industrial transformation agenda, has signed a Memorandum of Understanding (MoU) with the Abu Dhabi Fund for Development (ADFD).
As part of this MoU, EDB will provide innovative financing and banking solutions, credit guarantees and joint lending for the beneficiaries of ADFD's programmes and thus support the economic diversification in Abu Dhabi and the UAE and promote overall sustainable growth and exports.
The agreement was signed by Ahmed Mohammed Al Naqbi, CEO of Emirates Development Bank, and Mohammed Saif Al Suwaidi, Director General of Abu Dhabi Fund for Development.
The MoU is aligned with the common objectives of both EDB and ADFD, in particular the provision of innovative financing and banking solutions 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.
The areas of cooperation include 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 increasing EDB's receivables' financing applications.
EDB and ADFD will also 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 programmes 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.
In his remarks, Ahmed Mohamed Al Naqbi said: "Since its establishment in 1971 by the late Sheikh Zayed bin Sultan Al Nahyan, Abu Dhabi Fund for Development has undertaken a noble mission to empower societies and support development around the world, as well as strengthening the national economy. Emirates Development Bank is proud to collaborate with this leading institution to achieve the common goals in supporting the process of economic transformation and diversification in the country."
Al Naqbi added: "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."
Mohammed Saif Al Suwaidi said: "We are proud to sign the cooperation agreement with Emirates Development Bank and to enter into a strategic partnership with one of our leading national institutions that provide financing solutions and innovative banking programs. 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."
Al Suwaidi added: "Abu Dhabi Fund for Development is committed to forming effective partnerships with our national institutions to develop joint plans and ambitious future strategies that support the national economy and diversify its resources. We work together to open new horizons and areas of cooperation to enhance the interests of our national companies and provide opportunities and capabilities and necessary expertise to sustain their activities across vital sectors."
As the financial driver of "Operation 300bn" launched by the UAE government earlier this year, EDB focuses on contributing to the growth of the country's industrial sector, paving the way for economic diversification, sustainable economic development of local industries, GDP growth, driving private sector growth and increasing exports.
As part of EDB's strategy, which was unveiled earlier this year, EDB allocated AED 30 billion as 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 AED 10 billion to the country's GDP, support more than 13,500 companies, and create 25,000 jobs over the next five years.