Emirates Development Bank, the state-owned lender focused on financing companies in key industrial sectors, is teaming up with the Abu Dhabi Global Market to support companies looking to set up operations within the international financial centre, and help them expand.
As part of the partnership, EDB will simplify the process of opening bank accounts for ADGM-licensed entities, including small and medium enterprises and corporates, through its digital solutions.
The lender will also explore financing requirements for ADGM entities and large multinational corporations on the basis of “due diligence and feasibility studies performed”, it said on Wednesday
“As a well-established financial centre, ADGM is home to companies of all sizes in the region, attracting both foreign and local investors,” said EDB chief executive Ahmed Al Naqbi.
“We look forward to providing financing solutions, our tailored digital banking platform and our mentoring and educational services to support the sustainable development of businesses of strategic importance to the UAE within ADGM.”
EDB, founded in 2011 after a merger between Emirates Industrial Bank and Real Estate Bank, plays a key role in supporting the national economic development agenda and is at the forefront of the government’s efforts to develop its non-oil economic and industrial base.
The lender provides direct and indirect financing to start-ups, SMEs and large corporates.
It sponsors industrial projects across five priority sectors — manufacturing, infrastructure, advanced technology, food security and health care.
It has set aside Dh30 billion ($8.16 billion) for direct and indirect lending to more than 13,500 companies in priority sectors by 2025.
EDB also introduced a digital lending feature in partnership with peer-to-peer (P2P) lending platform Beehive that allows SMEs to apply for loans of up to Dh5 million (directly through its business banking app) and receive approval or feedback within five days.
The lending service is available for UAE-based SMEs in EDB’s five priority sectors, the bank said.
“This agreement is an extension of our ongoing co-operation and commitment to develop, foster and expand Abu Dhabi and the UAE’s financial landscape,” said Dhaher Al Mheiri, chief executive of the ADGM Registration Authority.
There are more than 5,400 companies registered and licensed at the ADGM and the number will grow, Mr Al Mheiri told The National during Abu Dhabi Finance Week in November.
In the first six months of last year, more than 1,000 companies set up operations within the ADGM.
