The Emirates Development Bank (EDB) Board of Directors held its fourth meeting of 2018 on July 18th at the bank's headquarters in Dubai, chaired by His Excellency Obaid Humaid Al Tayer, Minister of State for Financial Affairs and Chairman of the EDB Board of Directors. During the meeting, the Board discussed various items on the agenda,made numerous decisions and approved both the financial statements and the 2017 annual report. Emirates Development Bank hasachieved many operational and regulatory achievements during 2017, which will contribute to improving the financial performance and growth of the bank's loan portfolio in the coming years.

His Excellency Obaid Humaid Al Tayer, Minister of State for Financial Affairs and Chairman of the EDB Board of Directors, re-emphasized the bank’s significant achievements to date, such as the portfolio of Home Finance for UAE nationals reaching AED938 million for 1,012 Emiratis, which isexpected to reach AED1.25 billion by the end of 2018. This compares to AED150 million at the end of 2016 and is seen as a result of the bank’s approved UAE Nationals Home Finance strategy which contributes to achieving the National Agenda in terms of the housing sector. The bank offers Home Finance for UAE nationals with competitive advantages and credit flexibility, which reduces the financial burden on Emiratis. Emirates Development Bank facilitates real estate credit for family housing, in accordance with the terms of Federal Law by Decree No. 07 of 2011 on the establishment ofEmirates Development Bank. The bank also offers top-up loans for Emiratis to cover the cost of construction and residential assistance granted by the federal and local housing authorities, to enable local families to build their own homes. The objective is to contribute to enhancing social stability and family security in line with the UAE Vision 2021.

H.E. highlighted that the UAE Nationals Home Finance strategy has established significant success in enabling Emiratis to purchase or construct their own homes granting a host of tangible benefits including: improving the standard of living, easing the financial burden, and enabling them to attain social stability. This ensures higher levels of satisfaction and happinessin line with the vision of H.H Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, the UAE National Home Finance strategyand the objectives of the UAE Vision 2021.

H.E. Minister Al Tayerunderlined that the bank has provided 841 additional Home Finance solutions for UAE nationalswho received government housing assistance from federal and local housing authorities, including 761 clients ofthe Sheikh Zayed Housing Programme. This will contribute to enabling federal and local housing authorities to implement their own development programmes, thus strengtheningcooperation with local and federal authorities operating in the public housing sector.

H.E. noted thatthe SME Financing products have achieved the anticipated success in terms of the number of companies that have received funding, with a total value of AED357 million during the first half of 2018 which is expected to reach AED500 million in 2018. SMEs are the main economic pillar in the UAE and are considered the engine for creating job opportunities, which promotes sustainable economic development in the country and strengthens its competitiveness both regionally and globally, accelerating the country’s transformation towards a knowledge-based economy, driven by creativity and innovation, in line with the National Agenda.

H.E. the Chairman of the Board of Directors reiterated the bank’s SME Financing strategy, which is based on the following:

1. Small and medium-sized enterprises financing (SMEs):

Emirates Development Bank aims to offer banking solutions to achieve sustainable financial development for enterprises. The bank offers financing to small and medium-sized enterprises up to AED30 million on favorable and deliberate risk-free terms, creating more job opportunities for Emiratis, moving towards a knowledge-based economy and supporting innovations, research and development.

2. Financing Programme for start-ups from AED2 million up to AED5 million:

The bank is planning to launch a financing programme for start-ups offering financing loans from AED2 million up to AED5 million for start-ups owned by UAE nationals (more than 51% ownership) in accordance with the bank’s terms and conditions. This programme will contribute to supporting Emiratis by providing them with the necessary credit to establish their companies and develop their businesses. The start-ups financing programme has competitive interest rates and a flexible repayment period

3. Issuing partial bank guarantees to finance SMEs owned by Emiratis (with more than 51% ownership):

EDB offers financing support to customers who wish to obtain funding through partial guarantees for commercial banks. The bank has launched a Credit Guarantee Scheme to finance SMEs. The programme provides financing of up to AED2 million for start-ups where the bank guarantees 85% of the value of the financing, and AED5 million for existing companies where the bank guarantees 70% of the financing value.

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