UAE’s Industrial Sector Witnesses Surge in Financing, Driving Growth and Innovation

Title: UAE’s Industrial Sector Witnesses Surge in Financing, Driving Economic Growth

In Abu Dhabi, the UAE’s industrial sector is experiencing a significant increase in financing, thanks to strong support from both government and private entities. This collaborative effort is crucial in driving industrial growth and achieving the ambitious targets set forth in the “Operation 300 Billion” initiative.

Banks in the UAE have injected AED5.537 billion in funding for the manufacturing sector in the first nine months of 2024, bringing total loans to a historic peak of over AED94.85 billion, according to data from the Central Bank of the UAE (CBUAE). This represents a 6.2% increase in the financing portfolio for the sector, with a growth rate of over 37% over the past decade.

Key institutions such as the Emirates Development Bank (EDB), the Khalifa Fund for Enterprise Development (KFED), and the Mohammed Bin Rashid Establishment for SME Development are playing a crucial role in supporting industrial projects, particularly those focused on innovation and technology. These institutions offer accessible financing solutions and training programs to empower entrepreneurs and enhance the competitiveness of small and medium-sized enterprises (SMEs).

The EDB, in particular, is focused on stimulating and developing local factories by offering a wide range of solutions and products to the sector. Their vision aligns with the national strategy for advanced industry and technology, aiming to position the UAE as a global industrial hub by 2031 through the Operation 300 Billion Initiative.

Jamal Saleh, Director General of the UAE Banks Federation, emphasized the UBF’s commitment to supporting the industrial sector to accelerate economic growth and diversification. He highlighted the importance of focusing on the industrial sector, which contributed more than 11% to the UAE’s GDP in 2023 and offers ample opportunities for growth under the favorable frameworks set by the Ministry of Industry and Advanced Technology.

Overall, the surge in financing for the UAE’s industrial sector is driving economic growth and positioning the country as a key player in the global industrial landscape.
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