Institutional Mandate and Legal Basis
Emirates Development Bank (EDB) was originally established in 2011 and was relaunched with an expanded mandate and enhanced capitalization in 2021. The bank operates under federal law as the UAE’s national development bank, tasked with financing and supporting the growth of key sectors identified as priorities for economic diversification. EDB’s statutory mandate covers five strategic sectors: manufacturing, technology, healthcare, food security, and infrastructure. The bank is capitalized by the federal government and authorized to raise additional funding through capital markets to fulfill its development mission.
Role Within UAE Governance Structure
EDB serves as a federal policy instrument for channeling development finance into sectors that commercial banks may underserve. The bank operates under the oversight of a board of directors that includes senior government officials, ensuring alignment between its financing activities and national economic policy. EDB coordinates with the Ministry of Industry and Advanced Technology, the Ministry of Economy, and emirate-level economic development agencies to identify financing gaps and design products that address the specific needs of enterprises in priority sectors.
Key Functions and Activities
EDB provides a range of financial products including project finance, working capital loans, trade finance, credit guarantees, and export credit facilities. The bank targets small and medium enterprises, mid-cap companies, and large industrial projects within its priority sectors. EDB administers co-lending programs with commercial banks to leverage private sector capital and offers credit guarantee schemes that reduce risk for commercial lenders serving strategic sectors. The bank also provides advisory services and financial structuring support to enterprises seeking to scale operations, enter new markets, or adopt advanced technology.
Relationship to We the UAE 2031 Vision
Emirates Development Bank is a direct implementation mechanism for the We the UAE 2031 vision’s economic diversification and industrial development objectives. The bank’s financing activities support the growth of manufacturing, technology, and healthcare enterprises that form the foundation of a post-hydrocarbon economy. EDB’s mandate to support small and medium enterprises advances the vision’s goals for private sector development and national entrepreneurship. The bank’s credit guarantee programs address financing constraints that limit industrial expansion, directly contributing to the targets set under the national industrial strategy.
Recent Developments and Strategic Initiatives
Since its relaunch, EDB has significantly expanded its lending portfolio and introduced new financial products tailored to the needs of UAE manufacturers and technology companies. The bank has established partnerships with commercial banks, international development finance institutions, and fintech platforms to broaden its reach and leverage additional capital. EDB has launched dedicated financing programs for the Make It in the Emirates industrial campaign and has introduced green financing products to support sustainable manufacturing. The bank has also invested in digital lending platforms to streamline application processes and improve access for smaller enterprises.
Leadership and Governance
Emirates Development Bank is governed by a Board of Directors chaired by a senior government official, with members drawn from federal ministries and the private sector. The bank’s chief executive officer leads day-to-day operations and reports to the board on strategy execution and portfolio performance. EDB’s governance framework balances developmental impact with financial sustainability, requiring the bank to maintain prudent credit standards while fulfilling its mandate to support strategic sectors. The bank maintains dedicated teams for sector analysis, credit assessment, and portfolio management.