EDB and RAKBANK Launch AED 1B Fund for UAE Industrial Growth

In a significant move to empower micro, small, and medium-sized enterprises (mSMEs) in the UAE, Emirates Development Bank (EDB) and RAKBANK have launched a new co-financing initiative worth AED 1 billion. The announcement was made during the "Make it in the Emirates Forum," hosted under the Ministry of Industry and Advanced Technology (MoIAT) at Abu Dhabi’s ADNEC Centre and running until 22 May.

Targeting Strategic Sectors Vital to UAE’s Growth

This collaboration introduces one of the largest co-lending programmes tailored specifically for mSMEs in the region. The initiative is aimed at expanding access to funding for businesses operating in key sectors such as manufacturing, advanced technology, food security, clean energy, and healthcare, all central to the UAE’s economic vision.

Equal Funding Commitment from Both Institutions

The AED 1 billion will be equally funded, with AED 500 million each from EDB and RAKBANK. RAKBANK will serve as the lending partner, offering customised financial products to mSMEs across the country. Special emphasis will be placed on supporting enterprises in the Northern Emirates as well as greenfield (new) ventures.

H.E. Ahmed Mohamed Al Naqbi, CEO of Emirates Development Bank, said: “This partnership with RAKBANK is a powerful example of what Make it in the Emirates was designed to achieve — coordinated national action that turns industrial ambition into reality. At EDB, we’ve committed more than AED 18.8 billion in financing since 2021 to accelerate economic transformation, and we know from experience that unlocking mSME growth is one of the most effective ways to strengthen our industrial base. This AED 1 billion co-financing platform is a signal that we are serious about empowering the entrepreneurs and manufacturers who will lead our economy into its next chapter.”

Raheel Ahmed, Group CEO of RAKBANK, added: "At RAKBANK, we have always believed that mSMEs are the backbone of the UAE economy. This AED 1 billion partnership fund is a bold step forward in our commitment to serve them better. By joining forces with Emirates Development Bank, we’re not just unlocking capital — we’re creating real opportunities for entrepreneurs to grow, scale, and contribute to a more dynamic and sustainable national economy."

Accessible Financing with Defined Impact Goals

The funding model ensures that businesses can secure capital at competitive rates while also meeting defined impact criteria. These include specific allocations for enterprises based in Ras Al Khaimah, Umm Al Quwain, and Fujairah, as well as a focus on UAE national-owned companies, manufacturing firms, and startups in early development stages.

Aligning with National Development and Industrial Goals

This agreement is part of a wider commitment by EDB and RAKBANK to strengthen the mSME ecosystem, support the UAE’s diversification strategy, and contribute to national development objectives. The full deployment of the fund is expected within a 12-month timeframe. RAKBANK will lead on risk assessment and manage the lending portfolio, reporting monthly to EDB on progress and performance.

Setting a New Standard for Public-Private Collaboration

By launching this initiative, EDB and RAKBANK are establishing a model for impactful public-private cooperation. The partnership aims to drive innovation, support employment, and build long-term economic resilience for mSMEs, cementing their role as key contributors to the UAE’s sustainable growth story.