S&P Global has raised the long-term issuer credit rating of Emirates Development Bank (EDB) from AA- to AA, with a stable outlook. This makes EDB the highest-rated financial institution in the UAE and the MENA region.
Factors behind the upgrade
The upgrade reflects several factors: improved clarity of EDB’s strategic mandate to enable economic development and industrial growth in the UAE, EDB’s remarkable growth and achievements since the launch of its renewed mandate three years ago, EDB’s strong financial risk profile, the strong economic factors and credit conditions in the UAE, and EDB’s strategic focus on financing SMEs and corporates within five priority sectors that support the UAE’s economic transformation.
The UAE’s Minister of Industry and Advanced Technology and Chairman of EDB, Dr. Sultan bin Ahmed Al Jaber, commented that the upgraded rating is a historic moment for the UAE’s banking industry and a testament to the country’s efforts in strengthening its global competitiveness. He emphasized that EDB is successfully delivering its mandate and maintaining its position as a catalyst for economic growth and a key financial enabler of the UAE’s Industrial Development Strategy.
Prioritizing economic impact across key development sectors
EDB’s CEO, Ahmed Mohamed Al Naqbi, stated that the bank‘s focus on prioritizing economic impact across key development sectors and increasing its contribution to the nation’s industrial GDP have set EDB up for long-lasting success and rapid lending growth. He also noted that the AA credit rating by S&P Global is a testament to the bank’s successful delivery of its mandate and its strategic role as a provider of innovative financing solutions and banking services.
Read more: EDB contributes AED1.91 billion to UAE’s GDP
EDB’s lending focus and growth
In April 2021, EDB’s strategy has placed emphasis on specializing its financing to propel the growth of five priority sectors crucial to the UAE’s national development agenda: manufacturing, advanced technology, food security, healthcare, and renewables. This has resulted in a significant increase in the bank’s total financing, which has reached an unprecedented volume of AED11.3 billion since the launch of its strategy in 2021.
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