Fitch Ratings has affirmed Emirates Development Bank’s (EDB) at “AA-” credit rating, demonstrating the Bank’s strong creditworthiness due to its strategic importance to the UAE’s national agenda.
The rating also comes with a “stable” outlook, indicating confidence in EDB’s long-term ability to maintain its financial stability.
In its report, Fitch Ratings highlighted that EDB has a “well-defined policy and development role in the UAE” and operating conditions that the ratings agency “expects to remain strong” in 2024. The Bank’s focus on economic development over profitability was also noted, as well as the fact that EDB has always posted a yearly profit.
Ahmed Mohamed Al Naqbi, CEO of Emirates Development Bank, said,
"Fitch’s rating affirmation reflects EDB’s solid financial position to support the UAE's national diversification agenda. This rating, coupled with a stable outlook, underlines our long-term ability to finance the right transactions within our priority sectors as we strive to drive economic development, in line with the UAE government’s visions and priorities. It is a strong affirmation of the viability of our approach in prioritizing sustainable economic development over profitability."
In April 2021, EDB launched a five-year strategy to become a key financial engine for the UAE government's economic diversification agenda. The strategy focuses on supporting companies in manufacturing, advanced technology, healthcare, renewables, and food security with AED30 billion allocated to aid 13,500 companies by 2026.
By the end of 2023, EDB's total financing reached AED8.7 billion, contributing AED4.3 billion to the nation's industrial GDP. EDB's impact underscores its pivotal role in the UAE's economic diversification and sustainable growth, supported by its Proprietary Developmental Impact Scorecard, evaluating qualitative and quantitative economic impacts for financing eligibility.
News Source: Emirates News Agency
