Emirates Development Bank UAE: Loans, business support and how to apply

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