Emirates Development Bank maintains ‘AA-‘ credit rating with stable outlook, Fitch says
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Fitch Ratings has affirmed the credit rating of Emirates Development Bank (EDB) at “AA-”, demonstrating the bank’s strong solvency due to its strategic importance to the UAE’s national agenda.
The rating also comes with a “stable” outlook, indicating confidence in EDB long-term ability to maintain financial stability.
In his report, Fitch Ratings highlighted that EDB has a “well-defined policy and development role in the UAE” and operating conditions that the rating agency “expects to remain strong” in 2024. Also highlighted was the Bank’s focus on economic development over profitability, as well as the fact that EDB has always made annual profits.
Ahmed Mohamed Al Naqbi, CEO of the Emirates Development Banksaying,
“Fitch’s rating affirmation reflects EDB’s strong financial position to support the UAE’s domestic diversification agenda. This rating, together with a stable outlook, underlines our long-term ability to finance the right transactions within our sectors. priorities as we strive to drive economic development, in “In line with the visions and priorities of the UAE government. “It is a strong affirmation of the viability of our approach of prioritizing sustainable economic development over profitability.”
In April 2021, EDB llaunched a five-year strategy to become a key financial driver for the UAE government’s economic diversification agenda. The strategy focuses on supporting manufacturing, advanced technology, healthcare, renewable energy and food security businesses with AED 30 billion allocated to support 13,500 businesses by 2026.
At the end of 2023, EDB Total funding reached AED 8.7 billion, contributing AED 4.3 billion to the country’s industrial GDP. EDB’s impact underlines its critical role in the economic diversification and sustainable growth of the UAE, supported by its own Development Impact Scorecard, which assesses qualitative and quantitative economic impacts for funding eligibility.
News source: Emirates News Agency
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