UAE's Industrial Growth Boosted by AED 94.85 Billion in Financing under "Operation 300 Billion"

Robust government and private sector support drives UAE's manufacturing sector toward diversification, sustainability, and innovation.

Abu Dhabi [UAE], January 13: The United Arab Emirates' industrial sector has reached new heights, with financing surpassing AED 94.85 billion, according to the Central Bank of the UAE (CBUAE). This significant funding milestone has been achieved through strategic collaboration between government entities and private financial institutions, supporting the ambitious goals of the "Operation 300 Billion" initiative aimed at positioning the UAE as a global industrial hub by 2031.

In the first nine months of 2024 alone, banks injected AED 5.537 billion into the manufacturing sector, reflecting a 6.2% growth in funding compared to the end of 2023. Over the past decade, the sector's financing portfolio has surged by 37%, underscoring its critical role in economic diversification.

Support from Leading Institutions

Key organizations like the Emirates Development Bank (EDB), Khalifa Fund for Enterprise Development (KFED), and the Mohammed Bin Rashid Establishment for SME Development have been instrumental in fostering industrial innovation. These entities provide accessible financing solutions, training programs, and expert consulting to empower entrepreneurs and small and medium-sized enterprises (SMEs).

• EDB's Vision: Focused on funding priority sectors, EDB offers comprehensive solutions aligned with the UAE’s advanced industry strategy to drive sustainability and innovation in manufacturing.
• KFED's Contribution: The fund emphasizes industrial innovation by supporting SMEs and local entrepreneurs with diverse financing solutions and specialized training programs.
• SME Development: The Mohammed Bin Rashid Establishment enhances project competitiveness through flexible financing programs and expert advice.

Strategic Importance of the Sector

Jamal Saleh, Director General of the UAE Banks Federation, reiterated the pivotal role of the industrial sector in achieving economic diversification. "The sector contributed over 11% to the UAE's GDP in 2023 and holds immense potential for further growth," he stated. He also highlighted the banking sector’s role in addressing the needs of the Fourth Industrial Revolution (4IR) and advancing sustainability and circular economy initiatives.

The Ministry of Industry and Advanced Technology has created a favorable framework to maximize the sector’s contribution, with industrial financing forming the backbone of this transformative journey.

With such robust support and targeted initiatives, the UAE’s industrial sector is set to thrive as a cornerstone of the nation's vision for sustainable and diversified economic growth.