Development Bank to offer new funding

Emirates Development Bank (EDB) will open a fresh avenue of funding for the industrial sector and will also empower small and medium-size businesses of UAE nationals, according to top officials from the bank .

The bank also intends to partner with local funds providers within each emirate to achieve its objectives, he added.

Younis Haji Alkhoori, Undersecretary of the Ministry of Finance, said: "The establishment of Emirates Development Bank is a significant move aimed at building strong and sustainable businesses in the UAE. The initiative will open a fresh avenue of funding for the industrial sector. The bank will also empower small and medium-size businesses of UAE nationals, enabling them to capitalise on the growth opportunities of the region."

EDB, which will be fully capitalised by the federal government, is scheduled to be operational by 2010. The bank intends to partner with local funds providers within each emirate to achieve its objectives, he said.

Alkhoori said: "The bank also proposes to lend support to the government's housing schemes, social and developmental projects. As part of this mandate EDB will assist in providing funding for 40,000 houses, under the Sheikh Zayed Housing Programme, to be built for UAE nationals."

The special committee set up to oversee the establishment of the EDB, met last week to discuss its operational framework.

The committee, under the Ministry of Finance, meets every week to evaluate and finalise matters concerning the creation of the bank.

In its meeting last week, the committee deliberated on the modalities of funding developmental projects, which included responding to the needs of small and medium-size enterprises.

The committee also discussed the creation of an operational team and appointment of senior management. Expertise in setting up development banks was considered as one of the important criteria for recruiting the team. Other topics on the agenda included the setting up of a sophisticated IT infrastructure for the bank.

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