UAE Announces $8.2bn Stimulus Targeted at Industrials

UAE is planning to provide a stimulus of $8.2bn to its industrial sector. According to Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates (UAE), and ruler of the Emirate of Dubai, the Emirates Development Bank (EDB) will play a key role in the national economic development strategy and assign AED 30bn (~$8.17bn) to the industrial sector which will benefit ~13,500 companies and lead to a job creation of 25,000 jobs. The initiative is a part of UAEs 10Y strategy to increase the industrial output of the country under “Operation 300bn” which could result in the sector contributing AED 300bn to the country’s GDP by 2031. To execute the strategy, EDB will increase direct financing by 73% for the priority sector in 2021 and partner with other banks of the emirate to provide financial support to small and medium-sized industrial companies. Start-ups and SMEs will be boosted through an AED 1bn investment fund in 2022. EDB has already helped 550 small and medium companies by providing loans worth AED 1.8bn since its inception. According to Sultan Al-Jaber, chairman of the EDB. “Operation 300bn is a comprehensive national programme aimed at enhancing the contribution of the industrial sector to the UAE’s sustainable economic growth”. He said that “The new EDB strategy will help accelerate industrial development and the adoption of advanced technology through dedicated financing programs and will also provide dedicated investment funds that will support entrepreneurs, start-ups and SMEs,”.