Abu Dhabi [UAE], January 13 (ANI/WAM): The UAE's industrial sector has witnessed a significant surge in financing, driven by robust support from both government and private entities. This collaborative effort plays a crucial role in propelling industrial growth and achieving the ambitious targets outlined in the "Operation 300 Billion" initiative.
This robust financial backing is paramount, as a well-funded industrial sector is fundamental to building a diversified and resilient national economy, characterised by sustainability, innovation, and long-term economic prosperity.
Banks operating in the UAE injected AED5.537 billion in funding for the manufacturing sector during the first nine months of 2024, bringing the total loans to the sector to a historic peak of over AED94.85 billion, according to data from the Central Bank of the UAE (CBUAE).
The financing portfolio for the sector increased by about 6.2 per cent during these nine months, from AED 89.315 billion at the end of 2023, with a growth rate of over 37 per cent over the past decade, compared to the end of 2015.
Leading 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 key supporters of industrial projects, especially those focused on innovation and technology.
These institutions provide a range of accessible financing solutions and training programmes that empower entrepreneurs and enhance the competitiveness of small and medium-sized enterprises (SMEs), enabling them to become an integral part of the growing industrial landscape in the UAE.
The EDB follows a comprehensive approach to stimulate and develop local factories by offering a wide range of solutions and products to this sector, which is one of the five priority sectors funded by the bank.
The bank's vision is aligned with the national strategy for advanced industry and technology, which aims to position the UAE as a global industrial hub by 2031 through the implementation of the Operation 300 billion Initiative.
In the meantime, the KFED plays a significant role in supporting the industrial sector in the UAE, contributing effectively to the financing and development of SMEs. The fund focuses on supporting local entrepreneurs and fostering industrial innovation through diverse financing solutions and specialised training programmes.
The Mohammed Bin Rashid Establishment for SME Development serves as a key platform for promoting entrepreneurship in the UAE, providing flexible financing programmes and expert consulting services to enhance the competitiveness of projects.
In statements to the Emirates News Agency (WAM), Jamal Saleh, Director General of the UAE Banks Federation emphasised the UBF's commitment to continuing efforts to support the industrial sector to accelerate economic growth and diversification, in line with the UAE's Industrial Strategy: Operation 300 billion Initiative.
He added that under the supervision and guidance of the CBUAE, the banking sector plays a vital role in financing the industrial sector, focusing on innovating suitable solutions to keep pace with developments in the sector and meet the requirements for the transition to the Fourth Industrial Revolution (4IR), sustainability, and the circular economy.
He highlighted the importance of focusing on supporting the industrial sector, being a fundamental pillar of the economic diversification strategy.
"The sector contributed more than 11 per cent to the UAE's gross domestic product in 2023 and offers ample opportunities for growth under the favourable frameworks set by the Ministry of Industry and Advanced Technology," he explained. (ANI/WAM)
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