Industrial financing boosts UAE economic diversification

Sharjah 24 – WAM: The UAE’s industrial sector has experienced significant growth in financing, a trend propelled by strong support from both government and private entities. This support is crucial in helping the nation achieve its ambitious goals outlined in the "Operation 300 Billion" initiative.

Financial support boosts industrial growth

The UAE's industrial sector has received robust financial backing, which is essential to building a diversified and resilient economy. A well-funded industrial sector is key to ensuring long-term economic prosperity, sustainability, and innovation.

Surge in bank funding for manufacturing sector

According to data from the Central Bank of the UAE (CBUAE), banks in the UAE provided AED5.537 billion in funding for the manufacturing sector during the first nine months of 2024. This brings the total loans to the sector to a historic peak of over AED94.85 billion. The financing portfolio grew by 6.2% during these nine months, reflecting a growth rate of over 37% compared to 2015.

Key institutions supporting industrial projects

Leading institutions like the Emirates Development Bank (EDB), Khalifa Fund for Enterprise Development (KFED), and the Mohammed Bin Rashid Establishment for SME Development are at the forefront of supporting industrial projects, particularly those focused on innovation and technology. These institutions provide essential financing solutions and training programs for small and medium-sized enterprises (SMEs).

EDB's role in stimulating local factories

The EDB offers a range of solutions to stimulate local factories, aligning with the UAE’s national strategy for advanced industry and technology. This vision aims to position the UAE as a global industrial hub by 2031 through the Operation 300 Billion Initiative.

KFED's contribution to industrial innovation

The KFED plays a critical role in supporting the industrial sector, particularly through financing and the development of SMEs. The fund focuses on fostering industrial innovation by providing diverse financing solutions and specialized training programs.

Mohammed Bin Rashid Establishment for SME Development

The Mohammed Bin Rashid Establishment for SME Development enhances the competitiveness of local projects by offering flexible financing and expert consulting services. This initiative plays a key role in promoting entrepreneurship in the UAE.

UAE Banks Federation supports industrial growth

Jamal Saleh, Director General of the UAE Banks Federation, emphasized the federation’s commitment to supporting the industrial sector and accelerating economic diversification. He stressed the importance of the sector in the UAE’s Industrial Strategy: Operation 300 Billion Initiative. With a contribution of over 11% to the UAE's GDP in 2023, the industrial sector continues to offer significant growth opportunities.