Emirates Development Bank (EDB) Company Profile

Background

Established in 2015 under the patronage of Sheikh Mansour bin Zayed Al Nahyan, Emirates Development Bank (EDB) is a state-owned financial institution headquartered in Abu Dhabi, United Arab Emirates. EDB's mission is to support the UAE's economic diversification by providing financial and non-financial solutions to businesses across five strategic sectors: advanced technology, food security, healthcare, manufacturing, and renewables. The bank aims to foster a sustainable and self-reliant economy by enabling individuals, SMEs, and corporates to achieve their full potential.

Key Strategic Focus

EDB's strategic focus centers on:

Financial Support: Allocating AED 30 billion from 2021 to 2025 to finance over 13,500 SMEs and create 25,000 jobs.

Sectoral Emphasis: Concentrating on five priority sectors: manufacturing, food security, healthcare, advanced technology, and renewables.

Economic Contribution: Aiming to increase the bank's contribution to the national GDP by AED 10 billion by 2026.

Innovation and Technology: Facilitating the adoption of advanced technologies and promoting a knowledge-based economy.

Financials and Funding

As of 2023, EDB reported:

Net Profit: AED 329 million.

Total Assets: AED 17.1 billion.

Total Equity: AED 6 billion.

Total Financing: AED 8.9 billion.

The bank's funding strategy includes a significant allocation of AED 30 billion over five years to support priority industrial sectors, aiming to finance more than 13,500 SMEs and create 25,000 jobs.

Pipeline Development

EDB's pipeline development focuses on:

Manufacturing: Providing financial solutions to support the growth of UAE manufacturers.

Healthcare: Supporting healthcare companies, hospitals, labs, and clinics to modernize and expand.

Renewables: Enabling the development and implementation of renewable energy solutions.

Food Security: Financing the food and agriculture sector to achieve self-sufficiency in food production.

Advanced Technology: Accelerating the adoption and integration of future technologies across various industries.

Technological Platform and Innovation

EDB differentiates itself through:

Digital Banking: Launching the EDB 360 digital platform, enabling entrepreneurs to open business accounts in minutes with zero fees and no minimum balance, and providing access to a suite of financial and non-financial services.

Development Impact Scorecard: Utilizing a proprietary tool that measures over 20 quantitative and qualitative factors to assess each loan's potential impact on economic development.

Leadership Team

Chairman: HE Dr. Sultan Ahmed Al Jaber.

Chief Executive Officer: HE Ahmed Mohamed Al Naqbi.

Both leaders have been instrumental in steering EDB's strategic initiatives and fostering partnerships to drive the UAE's economic diversification agenda.

Competitor Profile

Market Insights and Dynamics

The UAE's banking sector is characterized by a mix of commercial banks and development financial institutions, each playing distinct roles in the economy. Development banks like EDB focus on financing projects that align with national economic strategies, particularly in non-oil sectors.

Competitor Analysis

While EDB operates uniquely as a development bank, other financial institutions in the region include:

National Bank of Abu Dhabi (NBAD): A commercial bank that merged with First Gulf Bank to form First Abu Dhabi Bank, focusing on a broad range of banking services.

ECOWAS Bank for Investment and Development (EBID): A regional development bank owned by the fifteen ECOWAS member states, focusing on financing developmental projects in West Africa.

East African Development Bank (EADB): A regional development bank supporting projects in East Africa, with a focus on infrastructure and industrial development.

These institutions, while operating in different regions, share a common goal of supporting economic development through targeted financing.

Strategic Collaborations and Partnerships

EDB has established several strategic partnerships to enhance its impact:

Abu Dhabi Global Market (ADGM): Collaborated to support business establishment and expansion.

Commercial Bank of Dubai: Partnered through a credit guarantee scheme to support SME financing.

Yellow Door Energy: Launched a AED 100 million strategic collaboration to support the UAE's net-zero goals.

Operational Insights

EDB's operational strategy focuses on:

Tailored Financial Solutions: Offering patient capital and favorable financing terms to clients in strategic sectors.

Digital Transformation: Implementing digital platforms like EDB 360 to streamline banking services for entrepreneurs and SMEs.

Developmental Impact: Assessing loans based on their potential contribution to the UAE's economic development through the Development Impact Scorecard.