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18 April 2024

Emirates Development Bank reveals commitment to financing UAE renewables sector

Published
By E247
New priority focus sector revealed on sidelines of Climate Tech conference in Abu Dhabi
Bank can offer finance up to 100 percent of the project value with a maximum tenor of 15 years and a two-year grace period.
                                                                                                                                
Emirates Development Bank ("EDB" or "the Bank"), a key financial engine of the UAE’s economic development and industrial advancement, underlined its commitment to the UAE’s sustainable development agenda and to support the UAE’s Strategic Net Zero by 2050 Initiative after adding ‘Renewables’ to its priority sectors for financing. 
 
The new strategic area of focus was announced on the sidelines of UAE CLIMATE TECH, the nation’s first-ever decarbonization technology conference, hosted by The UAE Ministry of Industry and Advanced Technology and UAE energy and technology powerhouses, ADNOC and Masdar, which runs today, May 10 and tomorrow, May 11, 2023, at Abu Dhabi Energy Center. 
 
EDB is now two years into an ambitious five-year strategy aimed at empowering SMEs and large corporates in five priority sectors: Renewables, manufacturing, technology, healthcare and food security. The Bank has a mandate to deploy AED30 billion in financing support to 13,500 companies within these sectors by 2026.
 
The addition of ‘renewables’ to its list of key sectors to support is a strong reflection of the government-owned, not-for-profit banks’ desire to ensure it aligns with national development goals - which now have a strong focus on sustainability, carbon emission reduction and renewable energies. 
 
Ahmed Mohamed Al Naqbi, CEO of EDB, said: “As the UAE gears up for COP28, EDB is redoubling its efforts to support companies operating in the renewables sector, maximizing support for sustainable development and advanced low-carbon industries in line with the UAE's Net Zero ambitions. It is timely to announce our shift in priorities during this ground-breaking inaugural Climate Tech event, which we hope will help steer major industries based here in the UAE towards vital decarbonization programs.” 
 
When it comes to renewables and energy efficiency financing, EDB is very bullish. For renewable energy projects in the UAE, the Bank can offer finance up to 100 percent of the project value with a maximum tenor of 15 years and a two-year grace period. 
“As the UAE’s development bank, we have a clear role in supporting national ambitions for a just and equitable energy transition. Our support to the businesses and projects addressing the challenges and opportunities in the renewables sector has two goals: firstly, to support the UAE’s goal to achieve net-zero emissions by 2050. Secondly, to solidify the UAE’s position as a pioneering global hub for renewable energy technology and manufacturing, by cultivating a favourable environment for businesses of all sizes to operate in,” added Al Naqbi. 
The Bank is also working towards the goals and ambitions laid out in the UAE Centennial 2071 vision, which include helping develop a future-focused government and a diversified knowledge economy. 
 
The strategic adjustment towards more focused support on renewable projects and companies in the UAE comes as EDB continues to deliver on its mission of fostering a healthy, sustainable, and self-reliant economy in alignment with the UAE government’s visions and priorities. 
EDB offers a patient debt approach with an emphasis on developmental impact. The Bank’s direct and indirect financing is offered with long tenors, higher loan-to-value ratios, lower rates and interest grace periods.