Dubai: Whether you’re a start-up, or a large corporation, if you need support navigating through challenging times or developing your business, look no further than the Emirates Development Bank (EDB).

What is the Emirates Development Bank?

The EDB is a government-owned financial institution in the UAE that focuses on promoting economic development and supporting strategic sectors in the country. Its primary aim is to provide both financial and non-financial support to businesses in five key sectors:

Advanced technology: Businesses looking to adopt or upgrade their technology infrastructure can access financing from EDB to cover costs. They can also expand their digital platforms, such as e-commerce websites and mobile apps, and utilise financing to support research efforts. For start-ups in this sector, there are a range of options available at different stages, such as product development, market research, and product launches.
Food security: From improving irrigation systems to developing storage facilities and processing centres, EDB offers help at every level of food production. It provides financing for infrastructure projects, farmers, and agricultural organisations, in order to improve productivity and enhance efficiency.
Healthcare: EDB supports healthcare companies by providing tailored financing solutions and access to capital to fuel their growth, expand their operations and invest in cutting-edge healthcare technologies.
Manufacturing: When manufacturers need specialised equipment, machinery or technology to facilitate their production processes, EDB offers financing options. It also helps with expanding production capacity, supporting export activities, and day-to-day operational costs.
Renewables: EDB offers CAPEX finance (learn more below) for solar panels, enabling small businesses to generate their own energy. For businesses looking for larger-scale clean energy initiatives, its Greenfield and Brownfield structured project financing is available for many renewable energy sources.

How is EDB different from a bank?

Unlike commercial banks, the EDB’s drive is not based on profit. It focuses on building sustainable growth in businesses of all sizes across the UAE, and it has a variety of products to serve businesses at every stage of their life cycle.

Here are some ways in which, the EDB differs from banks:

It makes financing decisions based on sustainable impact and self-reliance for the UAE economy, rather than profit.
If you need a longer-term horizon, it offers you ‘patient debt’ rather than the standard five years.
In addition to direct financing, it also offers indirect financing solutions to small- and medium-sized enterprises (SMEs) by guaranteeing commercial loans.
It offers business banking to start-ups that may not qualify for regular banking services.
Its business banking offers customised features for start-ups and SMEs that are based on their unique needs, and that they cannot get elsewhere.
It goes beyond finance by offering tailored education, mentoring programs and innovation labs, creating a thriving start-up ecosystem.

What solutions do they offer?

The EDB offers direct financing, indirect financing, and other solutions for businesses.

For each of the solutions provided below, the eligibility criteria varies, depending on the nature of the project or business. Generally, factors such as creditworthiness, business viability, and alignment with EDB's strategic objectives and focus areas are considered. Once you apply for the loan or support initiative, the EDB will inform you whether you have met their eligibility criteria, and how to proceed.

We outline every option below, so you can find the one you need:

Direct financing

1. Long-term financing (CAPEX): This type of financing is typically used by companies without the cash flow to pay for assets outright, or those not wanting to deplete existing cash reserves. CAPEX financing can be used to purchase long-term assets or capital expenditures, such as the machinery, equipment, property or technology necessary for a company's operations or growth strategy.

Maximum loan-to-value: 80%

Max tenor: The repayment terms of CAPEX financing are usually longer than short-term working capital financing, and can range up to 12 years.

Maximum grace period: 1.5 years

2. Greenfield and Brownfield Project Finance: EDB’s Greenfield project financing supports the development of a completely new project or venture from scratch. It includes acquiring land, building infrastructure and establishing operations. Think roads, bridges, airports, railways, renewable energy projects, new manufacturing facilities, real estate developments, and more.

Whereas, Brownfield project financing assists in the redevelopment or expansion of existing infrastructure, facilities, or properties, usually with a focus on revitalising or repurposing assets that are not being used properly, or have been abandoned.

Maximum loan-to-value: 80%

Max tenor: 12 years

Maximum grace period: 15 years

3. Advanced Technology Finance: EDB invests in emerging technologies through its Advanced Technology Adoption Finance option, with a focus on technologies such as artificial intelligence (AI), blockchain, Internet of Things (IoT), robotics and clean energy solutions. Businesses across sectors can use this solution to drive innovation, enhance operational efficiency, and maintain their competitive edge in the tech landscape.

Maximum loan-to-value: 80%

Max tenor: 12 years

Maximum grace period: 15 years

4. Renewables and Energy Finance: One of EDB’s missions is to work towards UAE’s Net Zero 2050 strategy. It’s why their Renewable and Energy Finance programme is designed to accelerate the development, deployment and adoption of renewable energy sources and energy-efficient technologies. Forward-thinking sustainable companies can apply for this loan, to steer the nation towards greener, more efficient and secure energy supplies. Projects on their roster include solar and wind farms, energy efficient buildings and sustainable transportation systems.

5. Digitisation Finance: This funding supports businesses making the switch to smarter digital solutions. It helps companies invest in technologies such as cloud computing, data analytics, AI and IoT, which eventually leads to enhanced operational efficiency, improved customer experiences, and innovation across industries.

6. Trade Finance: EDB offers a range of trade and working capital solutions for UAE companies that engage in international trade. From reducing payment and credit risks associated with global trade, to facilitating growth, this source of funding supports a smooth flow of goods and services for importers and exporters. Here are some solutions offered by EDB:

For importers:

Import letters of credit: Tailor-made to the importer’s specific needs, bridging gaps between the buyer and seller.
Inward documentary collections: EDB will manage financial and commercial documents, and make payments on the company’s behalf, based on agreed terms.
Loan against imports or trust receipts: EDB can bridge the time gap between paying for imports and selling them, by providing financing solutions.
Shipping guarantees: This enables importers to take possession of goods, even before the shipping documents arrive through banking channels.

For exporters:

Export letters of credit: This provides exporters protection from the buyer’s credit risk.
Export documentary collections: EDB can collect payments on the exporters’ behalf, through a secure, cost-efficient route.

Guarantees: EDB also facilitates various types of guarantee issuances, enabling businesses to be on favourable terms with their counterparts and protecting them from non-performance risk.

Invoice financing: As part of their working capital solutions, EDB offers financing for sales and purchase invoices, enabling companies to manage their cash flows efficiently.

7. Cash Management Solutions: The EDB operates as a key development bank, and can help streamline processes, optimise returns, and automate everyday tasks to ensure cost-effective management of all cash and working capital requirements. From opening a current account to making seamless international payments in various currencies, you can access a host of features, and choose from a range of account options and services.

8. Supply Chain Finance: If you need help with early payment to suppliers, EDB will do it on your behalf, thereby helping you optimise your working capital requirements and strengthening your relationships with suppliers. Take advantage of reduced financing costs – you only pay for what you use.

9. AgriTech Loans Programme: This is the UAE’s first-of-its-kind financing initiative designed to support the country’s food security sector. EDB has dedicated Dh100 million in support to empower farms, local growers and food suppliers, facilitating the adoption of advanced technology and cutting-edge solutions in the agricultural industry.

Maximum loan-to-value: 90%

Max tenor: 10 years

Maximum grace period: 2.5 years

Who can apply: The AgriTech Loans Programme is open to a variety of SMEs and large corporates, including farmers, local producers, technology providers and equipment suppliers, however there are additional eligibility requirements:

You must be located and operating in the UAE.
You must have a Al Etihad Credit Bureau report.
All nationalities of owners can apply.
You need 12 months account and VAT statements.
Audited financial statements for the last two years wherever applicable.
Minimum two-year duration for the business operation.
For a technical/feasibility study, external third-party experts acceptable to EDB must be involved.

10. Foreign Direct Investment: EDB provides long-term financing at competitive rates of interest to investors moving to the UAE, across the five priority sectors. From funding in Dirhams and US Dollars, to the ability to facilitate introductions with licensing authorities and provide guidance on Golden Visa regulations, the EDB is a one-stop destination for all related services.

Who can apply:

Global companies planning to move or expanding to the UAE.
Minimum turnover equivalent to Dh100 million or higher.
Global companies with a track record of three years or more.

The company must provide a project feasibility study (technical and financial), their project should be part of the five priority sectors of the EDB, and the global parent group must support the business until the project stabilises in the UAE.

Indirect Financing

Credit Guarantee: The EDB’s Credit Guarantee scheme helps reduce the pressure on SMEs, by giving them access to credit with competitive rates, and helping them establish a healthy credit history. By providing assurance to loaners, SMEs don’t have to worry about their limited credit history or the need for a collateral. The EDB also provides credit guarantees to support international trade by assuring payment to exporters and reducing the risk associated with cross-border transactions.

Maximum loan-to-value: 50%

Max tenor: 10 years

Maximum grace period: 6 months

Other Services

Apart from financing programmes, the EDB offers innovative solutions for businesses at all stages of their life cycle.

1. EDB 360 digital banking app: Built for UAE businesses, the EDB 360 combines digital banking with fintech integration, allowing SMEs and corporations to streamline operations, manage finances and secure growth financing. They can manage payments, transfers, and cards, and even apply for financing of up to Dh5 million right through the app.

Eligibility criteria: Note the following criteria before applying for the app:

It must be a UAE-registered business (LLC, sole proprietorship, civil company, or free zone entity).
Business accounts only (not for personal use).
No minimum balance required.

Documents required: To avail of this service, you will require the following documents:

Valid trade licence.
Memorandum of Association (MoA) or shareholder agreement.
Emirates IDs and passports of shareholders/authorised signatories.
Proof of address (tenancy contract or utility bill).

How to apply:

Download EDB 360 from the Apple App Store or Google Play Store.
Register and apply for a bank account directly by uploading your documents on the app.
EDB will review within 48 hours and notify once approved.
Start banking! Your business account is active and ready to use.

2. Business Lab: The EDB Business Lab empowers UAE start-ups and SMEs, assisting them in becoming financially prepared for their ventures. The platform provides free essential resources and content to help entrepreneurs at various stages of their business development, such as topics related to strategy, innovation, sales, marketing, and accounting. Entrepreneurs also get practical professional tips on how to address common business challenges, and receive networking opportunities to collaborate and grow their business.

3. AgriX Programme: This accelerator programme, designed to empower UAE farmers, integrates technology with sustainable practices. The Programme offers training to enhance the capabilities of UAE farmers, integrates innovative technologies to boost productivity and efficiency, drives the scalability of agricultural operations, fosters strategic alliances to maximise impact and resources, and showcases measurable outcomes at every stage.

4. Make It In The Emirates (MIITE): A national programme by the EDB, the MIITE accelerator provides founders with the tools and connection they need to scale manufacturing ventures. The programme provides end-to-end support, from expert mentorship and cutting-edge facilities, to strategic connections and tailored guidance. The programme lasts approximately six months, culminating in a national showcase, and there is no fee to join.

Eligibility criteria:

UAE-based manufacturing start-up or SME (Emirati and non-Emirati founders).
Established local manufacturing operations with commercialised products.
Seeking to scale both production and business operations.

How to apply for EDB services

In order to apply for any of the services listed above, express your interest by filling up a detailed form on EDB’s website. Follow these steps to do so:

Visit: https://edb.gov.ae/sme-customer-application
Fill in your company’s details, including its name, years in business, sector, and entity type.
Fill in your contact details, including your address, mobile number, P.O.Box, city, telephone number, authorized manager, and email address.
Include facility request details by selecting which EDB solution you are applying for and the purpose of the finance.
Next, upload documents for verificiation. Documents include a copy of trade licences, audited financial statements for the past three years, bank account statement (one year), company profile, business plan, and other supporting documents.
Select Submit. The EDB will get in touch with you once they have reviewed all your information, and let you know how to proceed.

Dubai Explosion - IN PICTURES (6)