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Dubai approves EDB's AED 30bn strategy to support SMEs, businesses

Dubai approves EDB's AED 30bn strategy to support SMEs, businesses
The EDB will finance over 13,500 SMEs

UAE - Mubasher: Dubai has adopted the Emirates Development Bank's (EDB) strategy to provide businesses and startups across various industries with AED 30 billion financial support and boost the national economy. 

Approved by Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE and Ruler of Dubai, the EDB strategy aims to support "Operation 300bn" to foster the industrial sector over a five-year period, according to a press release on Monday.

As part of the strategy, the EDB will finance over 13,500 small and medium-sized enterprises (SMEs) and create 25,000 job opportunities.

In the next phase, the Bank will focus on partnering with the UAE banks to grant financial services to industrial SMEs across different sectors and raising its direct financing by 73% in 2021 for priority and underserved sectors.

In the meantime, the EDB will introduce an AED 1 billion investment fund for startups and SMEs in 2022.

Since its establishment in 2011, the Bank has supported 550 companies through AED 1.8 billion business loans to SMEs, besides the housing loans worth AED 2.4 billion and $750 million five-year Senior Bond.

The UAE Minister of Industry and Advanced Technology, Sultan Al Jaber, said: "The new EDB strategy will help accelerate industrial development and the adoption of advanced technology through dedicated financing programmes and will also provide dedicated investment funds that will support entrepreneurs, start-ups and SMEs."

Al Jaber added: "EDB will provide other tools including supply chain support, project financing, long-term financing, business accelerators, equity capital financing, and a business growth support fund."

It is noteworthy to mention that in March, Sheikh Mohammed bin Rashid launched 'Operation 300bn', a national industrial strategy, to increase the industrial sector’s contribution from AED 133 billion to AED 300 billion by 2031.