News

Apr 06, 2023

Make it in the Emirates Forum: EDB facilitates Dhs424m in funding

The deals come as part of the bank’s mandate to approve Dhs30bn in funding

The deals come as part of the bank's mandate to approve Dhs30bn in funding support to companies in the UAE within five key focus sectors

UAE's Emirates Development Bank (EDB) has unveiled a comprehensive set of approvals for financing deals totalling Dhs424m as part of a broader strategy to further diversify the economy and cement the country's position as a global manufacturing hub.

The financing targets different industries and includes establishing a new steel complex in KEZAD – Abu Dhabi for manufacturing rolled steel, a factory to produce recycled kraft paper, which aims to meet the demand for sustainable paper packaging converters in the UAE.

The funding deals also include setting up herbal medicines and supplement manufacturing facilities in Dubai.

"With our goal to increase the industrial sector's contribution to GDP to more than AED 300 billion by 2031, the Make it in the Emirates Forum is timely and relevant to showcase our progress in boosting national production in line with national industrial objectives," said Ahmed Mohamed Al Naqbi, CEO of Emirates Development Bank.

EDB said financing deals were approved for the establishment of a plant for the production of sustainable bunker fuel in Fujairah, as well as the expansion of an aluminium extrusion factory to support electric vehicles, heating, ventilation, and air conditioning sectors.

"The financing seeks to drive economic diversification, further enhance the UAE's position as a global manufacturing hub and drive the adoption of advanced technologies in line with sustainable growth," EDB said in a statement.

Al Naqbi said the funding comes as part of the bank's mandate to approve Dhs30bn in financing support to companies in the UAE within five key focus sectors – renewables, manufacturing, technology, healthcare and food security – by 2026.

Financing has been approved for Himalaya Wellness, a multinational company that specialises in the manufacturing of herbal personal care, baby care, medicines and dietary supplement products.

EDB's support of Himalaya Wellness will assist the brand in setting up herbal medicines and supplements manufacturing facility in Dubai Industrial City, which is Himalaya's first plant outside India. The proposed plant will support local manufacturing, result in import substitution and support job creation in the UAE.

The bank's approved facilities for Dana Group will benefit its division Dana Steel to establish a new steel complex in KEZAD – Abu Dhabi to start manufacturing raw materials utilised in the company's existing metal coating complex in Dubai Industrial City – Dana Steel Industry.

The new factory will have 500,000 metric tonnes rolling capacity, supplying products such as cold rolled full hard coils.

The financing approved by EDB will also support the growth strategies of Star Paper Mill, Bluetec, OSE Industries, and Ipack, which encompass a range of industries, demonstrating EDB's commitment to supporting various sectors.

Star Paper Mill Industry is a ‘greenfield’ project focusing on manufacturing recycled kraft paper, utilizing locally produced wastepaper as well as imports. The project aims to meet the demand for sustainable paper packaging converters in the UAE.

Through an innovative oil recycling plant in Fujairah Free Zone, Bluetec aims to produce bunker fuels from various waste oils, contributing to environmental sustainability while positively impacting the market.

Specialising in aluminium extrusion, OSE Industries produces speciality products including extruded microchannel tubes. Financing provided by EDB supports an expansion project, which aims to increase production capacity by 50 per cent to reach 12,000 metric tons per year.

As the first privately-owned producer of aseptic packaging material in the UAE, Ipack manufactures packaging solutions for products including milk, juices, cheese and tomato paste. EDB's financing facility will support the company's expansion strategy and working capital requirements.