Image courtesy: WAM
UAE’s Emirates Development Bank (EDB) has unveiled a solar energy finance programme to support local micro, small, and medium enterprises (mSMEs) across diverse sectors.
The initiative will allocate Dhs100m to bolster the adoption of green energy solutions with a focus on solar energy initiatives.
The development bank said the programme seeks to support the shift toward cleaner energy sources by addressing cost barriers that may have hindered the adoption of sustainable practices.
With convenient application processes, the programme offers medium- and long-term loans and working capital of up to Dhs5m particularly directed at solar energy projects.
EDB said this includes support for technology providers, equipment suppliers, energy consumers across various sectors and other related energy endeavours such as hydrogen production and waste management.
“EDB is now offering a competitive source of financing to help UAE companies transition towards clean and sustainable energy solutions. This will reduce dependence on non-renewable sources and address climate change,” said Ahmed Mohamed Al Naqbi, CEO of Emirates Development Bank.
“By partnering with key government authorities and approved renewable energy consultants and contractors, we also aim to provide comprehensive support throughout the process.”
Solar energy financing offers up to eight years-long tenor loans for structured finance projects and solar panels, with grace periods of up to six months.
Under the new scheme, EDB is offering a 100 per cent loan-to-value ratio and will be providing finance for the full appraised value or purchase price of the asset.
The bank is offering capital expenditures finance for solar panels as well as greenfield and brownfield structured project financing available for other renewable energy sources, enabling the development of larger-scale clean energy initiatives.
“This helps contractors manage cash flow, invest in new projects, or cover their operating expenses while awaiting customer payments,” said EDB.
EDB supports SME ecosystem
Meanwhile, EDB continues to deliver on its mission to foster a healthy, sustainable, and self-reliant economy, with a mandate to approve Dhs30bn in financing support to 13,500 companies within its five priority sectors – renewables, food security, manufacturing, technology and healthcare – by 2026.
The bank added ‘renewables’ to its priority sectors for financing in May, as part of its commitment to support the UAE’s net zero initiatives and sustainable development agenda.
By offering renewable energy financing, EDB aims to play a pivotal role in accelerating the country’s transition towards a cleaner and greener future.
The development lender unveiled a Dhs100m agritech loan programme in June to empower farms, local growers and food suppliers by supporting their adaptation and modernisation efforts through the programme.
The programme is targeted at farmers, local producers, technology providers, equipment suppliers, and those involved in the agriculture support ecosystem.
EDB signed an MoU with Trade Capital Partners in August to create supply chain finance and working capital solutions for SMEs in the UAE. The partnership between the two entities was facilitated by Abu Dhabi’s Hub71 as part of a broader strategy to support startups with commercial opportunities.