Emirates Development Bank unveils AED424m in financing deals at Make It in the Emirates Forum
Abu Dhabi, United
Arab Emirates, May 31, 2023: In a strong show
of support for local companies in the manufacturing sector, Emirates Development
Bank ("EDB" or "the Bank"), the
financial engine for UAE economic development and industrial advancement, today
unveiled a comprehensive set of approvals for financing deals totaling AED424
million. The announcement was made at the 'Make it in the Emirates' Forum, held
at the Abu Dhabi Energy Centre.
The financing targets different industries and includes establishing a new steel complex in KEZAD – Abu Dhabi for manufacturing rolled steel, a factory to produce recycled kraft paper, which aims to meet the demand for sustainable paper packaging converters in the UAE, and a world-class herbal medicines and supplements manufacturing facility in Dubai. Financing deals were also approved for the establishment of a plant for the production of sustainable bunker fuel in Fujairah, as well as the expansion of an aluminum extrusion factory to support electric vehicles, heating, ventilation, and air conditioning sectors.
The financing seeks to drive economic diversification, further enhance the UAE’s position as a global manufacturing hub and drive the adoption of advanced technologies in line with sustainable growth.
Through the financing, EDB will support the expansion of Himalaya Wellness, a large multinational corporation, support the establishment of Dana Group's fifth factory in the UAE, in addition to empowering four SMEs - Star Paper Mill, Bluetec, OSE Industries, and Ipack - which are actively contributing to the vibrant manufacturing landscape in the UAE.
Ahmed Mohamed Al Naqbi, Chief Executive Officer of Emirates Development Bank, said: “Under the support of our wise leadership, the UAE has leveraged its resources and strengthened its national industrial capabilities, becoming a regional leader in manufacturing. With our goal to increase the industrial sector's contribution to GDP to more than AED 300 billion by 2031, the Make it in the Emirates Forum is timely and relevant to showcase our progress in boosting national production in line with national industrial objectives.”
The financing comes as part of the Bank’s mandate to approve AED30 billion in financing support to companies in the UAE within five key focus sectors – renewables, manufacturing, advanced technology, healthcare and food security – by 2026.
Al Naqbi added: “As part of our mandate to support economic growth in the UAE, we are proud to announce the approvals on financing a large number of projects today, which will play a pivotal role in supporting the expansion plans of prominent companies in the UAE. These companies have all shown a commitment to manufacturing in the UAE, and to expand – and in doing so, will support the development of sustainable national industries and drive important socio-economic impact.”
Financing has been approved for Himalaya Wellness LLC, a multinational company that specializes in the manufacturing of herbal personal care, baby care, medicines, and dietary supplement products. EDB’s support of Himalaya Wellness will assist the brand in setting up a state-of-the-art herbal medicines and supplements manufacturing facility in Dubai Industrial City (DIC), which is Himalaya’s first plant outside India. The Himalaya Group has a long and successful history of more than 90 years in India and has been operating in the UAE for more than 20 years. The proposed plant will support local manufacturing, result in import substitution and support job creation in the UAE.
EDB's approved facilities for Dana Group will benefit its division Dana Steel to establish a new steel complex in KEZAD – Abu Dhabi to start manufacturing raw material utilized in the company's existing metal coating complex in Dubai Industrial City - Dana Steel Industry LLC. The new factory will have 500,000 Metric Tonnes Rolling Capacity, supplying products such as cold rolled full hard coils. This will increase Dana Group's manufacturing capacity in the region and substitute some of the imported raw material it uses with new 'Made in UAE' supply for factories across the GCC area.
The financing approved by EDB will also support the growth strategies of Star Paper Mill, Bluetec, OSE Industries, and Ipack, which encompass a range of industries, demonstrating EDB's commitment to supporting various sectors. The following companies have received approval for financing:
Star Paper Mill Industry is a ‘greenfield’ project focusing on manufacturing recycled kraft paper, utilizing locally produced wastepaper as well as imports. The project aims to meet demand for sustainable paper packaging converters in the UAE.
Through an innovative oil recycling plant in Fujairah Free Zone, Bluetec aims to produce bunker fuels from various waste oils, contributing to environmental sustainability while positively impacting the market.
Specializing in aluminum extrusion, OSE Industries produces specialty products including extruded microchannel tubes,. Financing provided by EDB supports an expansion project, which aims to increase production capacity by 50% to reach 12,000 metric tons per year.
As the first privately-owned producer of aseptic packaging material in the UAE, Ipack manufactures packaging solutions for products including milk, juices, cheese and tomato paste. With the high regional market demand for aseptic packaging, the company utilizes the latest technology in printing and high-tech machineries. EDB's financing supports their expansion projects and working capital requirements, further enhancing their capabilities.
EDB's latest tranche of financing deals exemplifies the bank's commitment to empowering both SMEs and large corporations, playing a vital role in the UAE's journey towards building a diverse, resilient, and sustainable economy.