This collaborative effort is vital for driving industrial growth and achieving the ambitious objectives outlined in the "Operation 300 Billion" initiative, according to the Central bank of the UAE (CBUAE).
Robust financial backing is essential, as a well-funded industrial sector forms the backbone of a diversified and resilient national economy, characterized by sustainability, innovation, and long-term economic prosperity.
Data from the CBUAE shows that banks operating in the UAE injected Dh5.537 billion into the manufacturing sector during the first nine months of 2024. This brings the total loans to the sector to an unprecedented Dh94.85 billion, marking a historic peak. The financing portfolio for the sector increased by 6.2 per cent during this period, up from Dh89.315 billion at the end of 2023. Over the last decade, the sector has seen a growth rate exceeding 37 per cent compared to the end of 2015.
Jamal Saleh, director general of the UAE Banks Federation, reaffirmed the UBF's commitment to bolstering the industrial sector to accelerate economic growth and diversification in alignment with the UAE's Industrial Strategy: Operation 300 Billion initiative. He highlighted the banking sector's essential role in financing industrial activities under the supervision and guidance of the CBUAE, emphasizing the need for innovative solutions to meet the evolving demands of the sector, particularly in relation to the Fourth Industrial Revolution (4IR), sustainability, and the circular economy.
Saleh underscored the importance of supporting the industrial sector as a fundamental pillar of the economic diversification strategy. "The sector contributed over 11 per cent to the UAE's gross domestic product in 2023, presenting abundant opportunities for growth under the favorable frameworks established by the Ministry of Industry and Advanced Technology," he explained.
Analysts said the UAE's industrial sector is poised for significant growth in 2025, supported by a robust financing environment and strategic initiatives aimed at fostering innovation and sustainability. With continued collaboration among governmental bodies, financial institutions, and private enterprises, the UAE is on track to solidify its position as a global industrial leader.
Key institutions such as the Emirates Development Bank (EDB), the Khalifa Fund for Enterprise Development (KFED), and the Mohammed Bin Rashid Establishment for SME Development are pivotal in supporting industrial projects, particularly those that emphasize innovation and technology.
These institutions offer a diverse array of accessible financing solutions and training programs that empower entrepreneurs and bolster the competitiveness of small and medium-sized enterprises (SMEs), enabling them to play a significant role in the expanding industrial landscape of the UAE.
The Mohammed Bin Rashid Establishment for SME Development acts as a central platform for promoting entrepreneurship in the UAE, providing flexible financing options and expert consulting services to enhance project competitiveness.
The EDB adopts a comprehensive strategy to stimulate and develop local manufacturing facilities by providing various solutions and products to this sector, which is one of the five priority sectors funded by the bank. The bank's vision aligns with the national strategy for advanced industry and technology, aiming to position the UAE as a global industrial hub by 2031 through the implementation of the Operation 300 Billion initiative.
The KFED plays a crucial role in supporting the UAE's industrial sector, effectively contributing to the financing and development of SMEs. The fund emphasizes supporting local entrepreneurs and fostering industrial innovation through a wide range of financing solutions and specialized training programs.