In the News
- The EDB has launched the Agritech Loans Programme with an allocation of Dh100 million ($27 million) for agricultural financing.
- The EDB’s initiative aligns with the UAE’s sustainability initiative, ensuring farmers adopt cutting-edge innovations and techniques such as precision agriculture, irrigation systems, and advanced crop monitoring tools.
- The bank will offer various financing options, including green- and brownfield project financing, CAPEX and working capital financing, and medium-term loans or working capital amounts of up to Dh5 million ($1 million), with competitive rates, long tenors, and grace periods.
The Story
Emirates Development Bank (EDB), the government-owned bank of the United Arab Emirates (UAE), has announced the Agritech Loans Programme. The programme will allocate Dh100 million ($27 million) for agricultural financing and is designed to ensure sustainability within the agricultural sector.
Agritech Loans Programme is a novelty initiative to empower individuals and groups involved in the agricultural support ecosystem such as farmers, local producers, technology providers, and equipment suppliers.
The UAE ranks top in the Global Food Security Index, with a shift from 31st place in 2018, to ranking 21st in 2019. The programme will support the country’s adaptation and modernisation efforts. As the first of its kind, the EDB aims to ensure national food security in the UAE, as the country positions itself for global takeover in agricultural innovation.
Speaking on the initiative, Ahmed Al Naqbi, CEO of Emirates Development Bank, said: “We understand UAE food security is fundamental to the long-term health and wellbeing of the population. As the UAE’s development bank, it is our top priority to transform the nation into a regional hub for local food production in line with the National Food Security Strategy 2051.
The Agritech Loans Programme will enhance local production and address the setbacks within the agricultural industry. Al Naqbi also revealed that the programme will see farmers adopt and implement precision agriculture techniques, state-of-the-art irrigation systems, and advanced crop monitoring tools, thereby optimising yield, and catapulting the agricultural sector towards sustainability and exponential growth.
The EDB Agritech Loans Programme offers green- and brownfield project financing, CAPEX and working capital financing, and medium-term loans or working capital amounts of up to Dh5 million ($1 million) with competitive rates and a long tenor of ten years. EDB’s Agritech financing programme also provides grace periods of up to 2.5 years. The program is offered with a Loan-to-Value (LTV) ratio of up to 90%. The bank will also provide increased financial flexibility and support to borrowers, as these rates will facilitate the rapid adoption of technologies.
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According to Al-Naqbi, the EDB’s initiative aligns with the UAE’s national agenda to ensure food self-sufficiency and reduce dependency on importation. The initiative will enhance supply chain resilience and contribute to the nation’s economic development.
