News DeskAbu Dhabi, UAE – Fitch Ratings has affirmed the credit rating of Emirates Development Bank (EDB) at ‘AA-‘, underscoring the bank’s robust creditworthiness and strategic significance to the UAE’s national agenda. The rating, accompanied by a ‘stable’ outlook, reflects confidence in EDB’s capacity to sustain its financial stability over the long term.
Fitch Ratings emphasized EDB’s well-defined policy and developmental role within the UAE, foreseeing continued strong operating conditions for the bank in 2024. Notably, EDB’s prioritization of economic development over profitability was highlighted, alongside its consistent annual profitability.
Ahmed Mohamed Al Naqbi, CEO of Emirates Development Bank, expressed satisfaction with Fitch’s rating affirmation, emphasizing EDB’s solid financial position in supporting the UAE’s national diversification agenda. Al Naqbi underscored the importance of the rating and stable outlook, aligning with EDB’s commitment to finance transactions within priority sectors, as per the UAE government’s visions and priorities.
In April 2021, EDB unveiled an ambitious five-year strategy aimed at becoming a key financial engine for the UAE government’s industrial and economic diversification agenda. This strategy centers on providing support to large corporates, SMEs, and startups operating within five priority sectors crucial to the UAE’s national development plans: manufacturing, advanced technology, healthcare, renewables, and food security. EDB pledged AED30 billion to support 13,500 companies within these sectors by 2026.
Since the launch of its strategy, EDB has significantly contributed to the nation’s industrial GDP, reaching AED4.3 billion, with total financing amounting to AED8.7 billion by the end of 2023. These annual results underscore EDB’s substantial impact on the nation’s priority economic sectors, reaffirming its pivotal role in the UAE’s vision for industrial diversification and sustainable growth.
Furthermore, EDB has developed its own Proprietary Developmental Impact Scorecard, a key tool in assessing a company or project’s eligibility for finance. This scorecard evaluates qualitative and quantitative economic impacts, including GDP growth, job creation, in-country value, advanced technology adoption, and greenfield or brownfield development, alongside traditional lending criteria.
With its steadfast focus on driving economic development and supporting the UAE’s strategic priorities, Emirates Development Bank remains a cornerstone of the nation’s financial landscape, poised to continue its impactful contributions to sustainable growth and diversification.
