Emirates Development Bank deploying $5.5m a day to support UAE businesses

Emirates Development Bank (EDB) said it is deploying on average AED20 million ($5.5 million) in financing each day to ensure micro, small and medium enterprises (MSMEs) in the UAE continue to operate without disruption.

The daily financial support is intended to address immediate liquidity needs for the MSMEs, the state-backed lender said in a statement. 

“When global supply chains tighten, speed is everything. Deploying AED20 million a day is our direct answer to the market’s need for agility and certainty,” said chief executive Ahmed Mohamed Al Naqbi.

EDB is putting essential working capital into the accounts of the businesses that need it right now, he said.

The funding is directed to five priority sectors – manufacturing, advanced technology, healthcare, renewables and food security.

EDB has liberalised its liquidity policy, reduced loan approval time and updated its funding and capital frameworks to better support businesses in the current economic environment.  

Since the launch of its renewed strategy in 2021, the state-backed development bank has added more than AED11 billion to the UAE’s non-oil GDP and facilitated AED75 billion in industrial capital expenditure.

Last week, Dubai International Financial Centre (DIFC) rolled out a package of temporary support measures to help businesses weather the economic fallout from the Iran war, as companies across the emirate grapple with rising costs and weaker demand.
In March, the UAE central bankloosened liquidity rules and expanded access to funding for lenders. Dubai launched an AED1 billion support package for businesses, including a three-month deferral of government fees.

Further reading:

• Dubai offers $272m support package for businesses
• Fee relief for Dubai businesses feeling strain of Iran war
• Dubai restaurants warn of closure as Iran war hits tourism