Fitch Ratings has recently reaffirmed Emirates Development Bank’s (EDB) ‘AA-‘ credit rating, highlighting the bank’s strong creditworthiness and strategic importance in the UAE. The ‘stable’ outlook accompanying the rating reflects Fitch’s confidence in EDB’s ability to maintain its financial strength over the long term.
Fitch Ratings Assessment and Outlook
In its assessment, Fitch Ratings emphasized EDB’s well-defined policy and developmental role within the UAE, predicting favorable operating conditions for the bank in 2024. The rating agency acknowledged EDB’s focus on economic development over profitability and its consistent annual profitability record.
Emirates Development Bank’s Strategic Vision and Impact
Ahmed Mohamed Al Naqbi, CEO of Emirates Development Bank, expressed satisfaction with Fitch’s rating affirmation, highlighting it as a validation of EDB’s robust financial position in supporting the UAE’s national diversification agenda. Al Naqbi emphasized the bank’s commitment to financing transactions within priority sectors aligned with the government’s vision for sustainable economic development.
Since launching a five-year strategy in April 2021, EDB aims to become a key financial engine driving the UAE government’s industrial and economic diversification goals. The strategy focuses on supporting large corporations, SMEs, and startups in priority sectors such as manufacturing, advanced technology, healthcare, renewables, and food security, with AED 30 billion earmarked for 13,500 companies by 2026.
By the end of 2023, EDB had already provided AED 8.7 billion in financing, making significant contributions to the nation’s industrial GDP. The bank’s Proprietary Developmental Impact Scorecard evaluates qualitative and quantitative economic impacts to assess companies’ eligibility for finance, reflecting EDB’s holistic approach to driving sustainable development.
Fitch’s reaffirmation of Emirates Development Bank’s ‘AA-‘ credit rating underscores the bank’s strategic vision, financial stability, and significant contributions to the UAE’s economic development agenda. EDB’s commitment to supporting priority sectors and fostering sustainable growth positions it as a key player in driving economic diversification and prosperity in the UAE.
