UAE: Noticeable growth in financing the industrial sector enhances economic diversification

2025/01/12 3:10:18 PM

3 minutes read

Abu Dhabi, January 12 / WAM / Financing for the industrial sector in the UAE is witnessing a significant increase, through government and private financing institutions that play a prominent role in accelerating industrial growth and implementing the strategic objectives of the “300 Billion Project”, especially since financing this sector is one of the factors that contribute to… Supporting the process of building a diversified and strong national economy characterized by sustainability and innovation.
Banks operating in the local market pumped 5.537 billion dirhams during the first nine months of last year 2024, as financing for the manufacturing sector, bringing the combined loans for this sector to its historical peak above 94.85 billion dirhams, according to data from the Central Bank of the United Arab Emirates.
The portfolio of financing for this sector increased by about 6.2% within 9 months from its level of 89.315 billion dirhams at the end of 2023, while the portfolio’s increase in 10 years exceeded 37% compared to the end of 2015.
Leading institutions, such as the Emirates Development Bank, the Khalifa Fund for Enterprise Development, and the Mohammed bin Rashid Establishment for Small and Medium Enterprises Development, stand out as a major supporter of industrial projects, especially those that focus on innovation and technology. It provides a set of easy financing solutions and training programmes, which contribute to empowering entrepreneurs and enhancing the competitiveness of small and medium enterprises, so that they become part of the growing industrial landscape in the country.
The Emirates Development Bank follows a comprehensive approach to stimulate and develop local factories, by providing a wide range of solutions and products for this sector, which constitutes one of the five priority sectors that the bank finances.
According to the bank’s vision, it seeks to achieve the national strategy for industry and advanced technology by supporting and implementing the “300 Billion Project,” which will make the UAE a leading global industrial center by 2031.
The Khalifa Fund for Enterprise Development is considered one of the most prominent bodies supporting the industrial sector in the UAE. It contributes effectively to financing and developing small and medium-sized industrial projects, and focuses on supporting local entrepreneurs and promoting industrial innovation by providing various financing solutions and specialized training programs.
The Mohammed bin Rashid Establishment for Small and Medium Enterprises Development is a major platform for supporting entrepreneurship in the Emirates. The Establishment provides flexible financing programs and specialized advisory services to enhance the competitiveness of projects.
Jamal Saleh, Director General of the Emirates Banks Federation, the representative and unified voice of the Emirati banks, stressed the Federation’s keenness to continue its efforts to support the industrial sector in order to accelerate growth and economic diversification and achieve the goals of the Emirates Industrial Strategy “300 Billion Project.”
He told the Emirates News Agency, WAM, that the banking sector, under the supervision and guidance of the Central Bank of the United Arab Emirates, plays a vital role in financing the industrial sector, while being keen to innovate appropriate solutions to keep pace with developments in the sector and the requirements of the shift towards the approaches and methods of the Fourth Industrial Revolution, sustainability and the circular economy.
He pointed out the importance of focusing on supporting the industrial sector as it represents a fundamental pillar in the economic diversification strategy. The sector contributed more than 11% of the UAE’s total gross domestic product in 2023, and also provides broad opportunities for growth in light of the appropriate frameworks set by the Ministry of Industry and Advanced Technology.
Saleh pointed out the UAE Banks Federation’s focus on coordination with the authorities concerned with supporting and financing industry and small and medium-sized companies operating in the industrial sector in order to ensure the provision of an appropriate system for financing industrial companies that enhances the journey of digital transformation, supports supply chains and increases industrial exports.
For his part, Engineer Khaled Al Kaabi, CEO of Eco Polymers and Eco Patch Plastics, stressed that the UAE is a fertile environment to support the industrial sector through innovative financing initiatives and programs that help empower emerging, small, and large companies alike.
Al Kaabi pointed to the role of supporting bodies such as the Khalifa Fund for Enterprise Development and the Mohammed bin Rashid Establishment for Small and Medium Enterprises Development, which are among the most prominent institutions supporting emerging projects in the industrial sector that enhance the presence and contribution of Emirati youth in the sector.
He stressed the importance of careful planning and studying the market and competitors, pointing out that the industry requires patience and commitment, and there is no room for unaccounted experimentation.
He explained that financing is not an obstacle for large companies; Today, banks seek to finance major industrial projects, which constitute an opportunity in the eyes of financial institutions.