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Emirates Development Bank Board of Directors held its 7th meeting for the year 2017, chaired by HE Obaid Humaid Al Tayer, Minister of State for Financial Affairs, on Wednesday 13/12/2017 at the bank headquarters in Dubai.
During the meeting, the minutes and resolutions of the 6th board meeting for the year 2016 – held on 15/11/2017 – were reviewed and approved. The board also discussed and decided on several important items on the agenda and reviewed the procedures taken by executive management regarding the implementation of the board resolutions and recommendations.
The board then approved the estimated budget of the year 2018; allocating AED 1 billion to achieve growth in the bank loan portfolio based on these main strategic points:
Adopting SME Finance Strategy: As the focus of the country’s economy, small and medium-sized enterprises (SMEs) are considered the main driving force in creating jobs and job opportunities, as well as presenting new, creative work models. This supports the growth of the country’s sustainable economy, reinforces regional and global competitiveness and accelerates the country’s transition into a creative, innovation-based economy. The strategy is in line with the national agenda, which aims to fulfil the UAE Vision 2021 through this national index: “That the contribution of the SME sector to the nation's non-oil GDP must reach 70 percent by 2021.”
To this end, the board allocated AED 450 Million to small and medium-sized enterprise finance in 2018.
Establishing the Emirates Movable Collateral Registry Corporation: The establishment of the Emirates Movable Collateral Registry Corporation is in line with Federal Law No. 20 of 2016 concerning mortgaging of movable properties as security for debts, which was issued in December of last year. The law states that a security registry is to be established to regulate the registration process of movable assets, publicize and prioritize lenders’ rights and cover the processes of terminating or transferring the possession of moveable assets as well as their penalties and compensations. This gives companies a greater finance opportunity at a lower cost, which leads to better evaluations with regards to ease of doing business, global competitiveness, innovation, entrepreneurship and development.
Esteemed members of the UAE Cabinet recently approved the executive regulations of Federal Law No. 20 of 2016, concerning mortgaging of movable properties as security for debts and issued a directive regarding the establishment of an electronic registry to publicize lenders’ rights. It is expected that the Emirates Movable Collateral Registry Corporation will start operation in the second half of January 2018.
Adopting the Mohammed bin Rashid Innovation Fund Business Strategy: The Mohammed bin Rashid Innovation Fund business strategy aims to achieve a quality transition in the field of supporting innovation in the country through bridging the financial gap that creative projects might face. It also supports national and economic objectives, contributes to building a creative, diverse and knowledge-based national economy. As a result, sustainable progress can be achieved in the country in line with the national strategy for creativity; making the UAE government one of the most creative governments in the world.
The bank seeks to finance creative entrepreneurs with AED 100 Million in 2018, where banks and national banks participating in the Mohammed bin Rashid Innovation Fund issue bank guarantees to contribute to the finance of creative entrepreneurs.
Updating the Home Finance Strategy for UAE Nationals: In commitment to their goal of enabling UAE nationals to purchase or build their own private home, provide them with a dignified life, support social and family stability and achieve the highest levels of happiness and contentment between them; Emirates Development Bank announced the launch of Home Finance loans for UAE nationals last September. The Home Finance loans cover a loan of up to AED 5 Million for UAE nationals to purchase a house, a loan of up to AED 3 Million for UAE nationals to build a house and a complementary loan of up AED 3 Million. Emirates Development Bank Home Finance loan products are characterized by their flexible repayment period that can reach 25 years, competitive rates that lessen the financial burden of UAE nationals, transparency in dealing, fast approvals and convenient interest rates.
With these Home Finance products, Emirates Development Bank is targeting all UAE Nationals, those of them who have obtained loans from federal and local housing authorities, those looking to apply for a loan to build or purchase their own private home and those seeking to reserve a spot at the federal and local housing complexes, which are currently under way. To this end, the board allocated AED 550 Million to home finance for the year 2018.
In addition, Emirates Development Bank recently issued more than 632 housing approvals, estimated at AED 614 Million, for UAE Nationals. Accordingly, the Home Finance loan portfolio is expected to reach AED 1 Billion by the end of 2018.
On the occasion of Emirates Development bank’s 7th board meeting for the year 2017, HE Obaid Humaid Al Tayer, Minister of State for Financial Affairs and Chairman of Board of Directors, said: “Through the launch of these SME finance products, we seek to support the continuous growth of local economy by helping Emirati entrepreneurs establish their businesses and reach for more successful horizons. These products are in line with the national agenda and the UAE Vision 2021, which aim to increase the contribution of the private sector in economic development.”
He also pointed out: “Emirates Development Bank plays a major role in achieving the national strategic ambitions for creativity and accelerating the country’s transition to a sustainable, knowledge-based economy by integrating creativity in the bank’s infrastructure and providing SMEs with financial solutions.” He added: “Emirates Development Bank seeks to support sustainable development, empower UAE nationals to unleash their true potential and skills in entrepreneurship,” confirming the keenness of Emirates Development Bank to support different sectors by adopting an open finance policy to develop the business sector and provide financial facilities and benefits to national companies. In conclusion, he stated: “At Emirates Development Bank, we believe that success is a journey, not a destination. That’s why we work tirelessly and dedicate all our expertise to providing advice and counseling to entrepreneurs; helping them achieve their potential, affirm their commitment to creating a brighter future for the UAE and support its efforts to transition to a creativity-led economy.”
It is worth mentioning that Emirates Development Bank was established under the Federal Law by Decree No. 7 of 2011 and assigned AED 10 Billion in capital to bolster the economic prosperity of United Arab Emirates nationals by supporting the development of creative small and medium-sized enterprises, offering financial and saving solutions for UAE nationals and helping them obtain affordable, high-quality housing. The bank also offers support, finance and creative financial solutions to achieve sustainable growth in the field of small and medium-sized enterprises; the beating heart of national economy.
Emirates Development Bank offers a set of specialized products for UAE nationals. For more information on these products, please visit their official website on: www.edb.ae
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