The Board of Directors of Emirates Development Bank (EDB) concluded their third meeting of 2019, on Wednesday April 24, and chaired by His Excellency Obaid Humaid Al Tayer, Minister of State for Financial Affairs and Chairman of the Board of Directors of EDB. The Board discussed various topics on the agenda, initiating decisions on integral issues and approved the financial statements for 2018. Furthermore, members of the board reflected on the operational and regulatory achievements during the first quarter of 2019, which contributed to improving the overall financial performance and growth of the Bank’s finance portfolio.
The meeting highlighted the success of the first quarter of 2019, which included the approval of AED 1.45 billion worth of housing finance for UAE nationals. The Bank’s strategy aims to provide Emiratis with finance solutions to purchase or construct their homes – underpinning the Bank’s commitment to ease the financial burden on Emiratis and contribute to an improved quality of life. Moreover, the Bank’s financing solutions provide up to AED 5 million for home buyers and up to AED 3 million towards construction, enabling Emiratis to maintain a good standard of living.
EDB also approved AED 407 million worth of business financing to Emirati-owned and managed businesses. Earlier this year, the Bank launched its AED 100 million Credit Guarantee Scheme designed for SME’s. The scheme offers up to AED 2 million financing to start-ups where EDB guarantees their financed amount for up to 85 per cent, and up to AED 5 million financing to existing SMEs where EDB also guarantees up to 70 per cent of their financed amount. In addition, the Bank launched its AED 50 million “Start-Ups Finance” programme which provides Emirati entrepreneurs access to funding, thus enabling them to build and develop their business. The Bank provides SME financing to start-ups with at least 51% Emirati ownership (terms and conditions apply) by offering finance for up to AED 2 million, with competitive rates and flexible pay-back periods.
The Emirates Movable Collateral Registry (EMCR), a wholly-owned subsidiary of Emirates Development Bank, reported issuing 39,306 registry certificates for various movable and mortgaged assets. The registered certificates were attributed to 149 institutions and 817 users. By registering assets on EMCR, companies have better access to financing solutions from banks and reduced rates for financing. The national registry contributes to raising the UAE’s competitiveness, and improving its investment ecosystem position on the “Legal Rights Index” in the “Doing Business” report issued by World Bank.
The Board of Directors also reviewed the plans for establishing a digital platform, which will transform the delivery of services through digitized finance and process automation. The platform promotes the development of financing solutions to improve servicing and catering to customers’ needs. EDB is aligned with the UAE’s focus on fast-paced technological advancement, by developing the skills of its employees and processes, to ensure that its customers’ needs are met.
H.E. Obaid Humaid Al Tayer, UAE Minister of State for Finance, Chairman of the Board of Directors, reiterated the bank’s recent successes, which are a testament to the effectiveness of the plans and implementation of strategies, benefitting the advancement of the overall development across the UAE. Furthermore, H.E. Al Tayer reiterated EDB’s position as a key partner in helping UAE nationals own their homes, finance their businesses, to encourage entrepreneurship and to improve the UAE’s national business ecosystem. H.E. Al Tayer added that the bank is working relentlessly towards supporting the growth of the SME sector and contributing to increasing national competitiveness and boosting economic growth.
The members of the board also reviewed the success of the recently launched, debut $750 million five-year government bond. The inaugural transaction was issued under the bank’s newly established US $3 billion Euro Medium Term Note (EMTN) programme, to provide the bank accessibility to capital markets and further strengthen its funding capacity. The success of the transaction came on the back of an extensive marketing strategy aimed at introducing EDB to international and regional investors.
During the meeting, the members of the board welcomed EDB’s recently appointed Chief Executive Officer, Mr. Faisal Aqeel Al Bastaki. Mr. Al Bastaki is an industry veteran with 26 years of banking experience, and previously held leadership positions in various prestigious financial institutions.
Emirates Development Bank was established under Federal Law by Decree No. 07 of 2011 issued by His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE. It became operational in June 2015 under the patronage of His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs. The Bank launched its second branch in Dubai to provide comprehensive and easily accessible banking services to more UAE nationals, an important strategic step within the overall vision of the Bank and in pursuit of its objectives to reach all customers throughout the United Arab Emirates. For more details, visit www.edb.ae.