Emirates Development Bank, the state-owned lender focused on financing the UAE's priority sectors, has launched a Dh100 million ($27.2 million) solar energy finance programme as part of the country’s 2050 net-zero targets.
The financing for micro, small, and medium enterprises (MSMEs) across a range of sectors in the UAE’s economy will help bolster the adoption of green energy solutions, the lender said in a statement on Thursday.
The new green energy financing programme aims to accelerate the shift toward cleaner energy sources and address cost barriers that could hinder its progress.
The financing schemes offers medium and long-term loans and working capital of up to Dh5 million to MSMEs, particularly directed at solar energy projects.
Financing packages include support for technology providers and equipment suppliers as well as options for related sectors including hydrogen production and its use, waste management and water plants, EDB said.
“It is timely that we have chosen the year we are proudly hosting the crucial Cop28 climate talks to launch our solar energy financing package,” Ahmed Al Naqbi, EDB's chief executive, said.
EDB will offer companies a “competitive source of financing” to help the UAE transition towards clean and sustainable energy solutions.
“This will reduce dependence on non-renewable sources and address climate change,” he said.
“By partnering with key government authorities and approved renewable energy consultants and contractors, we also aim to provide comprehensive support throughout the process.
“In the race to net zero, no one can be left behind.”
EDB offers direct and indirect financing with long tenors and higher loan-to-value (LTV) ratios as well as lower rates and interest payment grace periods.
The lender’s newest scheme comes with up to eight-years tenor for structured finance projects and solar panels, with grace periods for borrowers of up to six months.
It is offering a 100 per cent (LTV) ratio and will be providing finance for the full appraised value or purchase price of the asset.
The lender is at the heart of the UAE’s efforts to the boost growth of SMEs and start-ups in the Arab world’s second-largest economy.
EDB contributed more than Dh3.5 billion to the country’s economy last year and supported the creation of more than 12,000 industrial jobs.
It aims to provide Dh30 billion in support to 13,500 companies, which, in turn, will contribute Dh10 billion to the country's economic output, EDB said in its 2022 annual report last month.
Last year, EDB approved Dh6.1 billion in loans, of which Dh1.8 billion was approved for SMEs.
The bank is targeting the approval of loans worth Dh6 billion or more this year, to match the size of funding last year, Mr Al Naqbi told The National in March.
In August, EDB signed a preliminary agreement to launch supply-chain financing and working capital solutions for small and medium-size enterprises in the country.
The initiative is being carried out in collaboration with Abu Dhabi-based Trade Capital Partners, a technology platform that delivers working capital finance solutions to SMEs, and is part of EDB’s efforts to support start-ups through its network of government and corporate partners, the lender said at the time.
How to get there
Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
More from Neighbourhood Watch
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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The biog
Year of birth: 1988
Place of birth: Baghdad
Education: PhD student and co-researcher at Greifswald University, Germany
Hobbies: Ping Pong, swimming, reading
