The UAE’s industrial sector saw substantial growth in financing during the first nine months of 2024, supported by government-backed institutions and private banks. The collaborative financing approach aligns with the national “Operation 300 Billion” strategy, which aims to expand the UAE’s industrial capabilities and enhance economic diversification.
Data from the Central Bank of the UAE (CBUAE) indicates that Dh5.53 billion was injected into the manufacturing sector during this period, pushing total loans to a record Dh94.85 billion. This represents a 6.2% increase from Dh89.315 billion at the end of 2023 and a 37% increase over the past decade since 2015.
Key institutions such as the Emirates Development Bank (EDB), Khalifa Fund for Enterprise Development (KFED), and Mohammed Bin Rashid Establishment for SME Development have played pivotal roles in financing industrial projects, particularly in innovation and technology.
“Under the supervision and guidance of the CBUAE, the banking sector plays a vital role in financing the industrial sector, focusing on innovating suitable solutions to keep pace with developments in the sector and meet the requirements for the transition to the Fourth Industrial Revolution (4IR), sustainability, and the circular economy,” said Jamal Saleh, Director General of the UAE Banks Federation.
He emphasised the sector’s critical role in economic diversification, noting its contribution of over 11% to the UAE’s GDP in 2023. “The sector offers ample opportunities for growth under the favourable frameworks set by the Ministry of Industry and Advanced Technology,” Saleh added.
The UAE’s industrial growth trajectory is being reinforced through strategic partnerships, with a sustained focus on achieving the objectives outlined in the “Operation 300 Billion” initiative.
