Fitch affirms AA rating for Emirates Development Bank

Fitch has affirmed the credit rating of Emirates Development Bank after the lender’s contribution to the UAE’s economy rose by 80 percent to more than AED4 billion ($1.1 billion) last year.

The agency’s AA rating came with a stable outlook, indicating confidence in the bank’s long-term ability to maintain its financial stability.

In its report, Fitch highlighted the EDB’s “well-defined policy and development role in the UAE” and operating conditions that the agency expects to remain strong in 2024. 

The EDB reported a total GDP contribution of AED4.3 billion last year, along with a 72 percent increase in financing for small and medium-sized enterprises compared with 2022. This has risen to AED3.3 billion.

Since 2021, when the bank launched a five-year strategy to become a financial engine of the UAE government’s industrial and economic diversification agenda, total loans financed are close to AED9 billion and more than 17,200 jobs have been created.

Under the strategy, the EDB has allocated a total of AED30 billion to support 13,500 companies in sectors such as manufacturing, advanced technology, healthcare, renewables and food security by 2026.

CEO Ahmed Mohamed Al Naqbi described the Fitch rating as a “strong affirmation” of its efforts to prioritise sustainable economic development over profitability.

Source: Trade Finance