EDB Achieves Highest Credit Rating in MENA with S&P Global Upgrade to AA
S&P Global has updated the Emirates Development Bank’s (EDB) credit rating to an AA, positioning it as the highest-rated bank in the MENA region.
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S&P Global has upgraded the long-term issuer credit rating of the UAE’s Emirates Development Bank (EDB) to AA from AA-, maintaining a stable outlook. This upgrade positions EDB as the highest-rated bank in the MENA region.
This upgrade reflects the bank’s clearer strategic direction to foster economic development and industrial growth in the UAE. It also acknowledges EDB’s substantial progress and achievements since its mandate was renewed three years ago.
The rating agency commended EDB’s robust financial risk profile, the UAE’s favorable economic and credit conditions, and the bank’s strategic emphasis on financing SMEs and major corporations in five critical sectors to the UAE’s economic transformation.
Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of EDB, commented on this saying: “The upgraded rating for EDB marks a historic moment for the UAE’s banking industry and is a testament to the rapid strides the UAE has made in strengthening its global competitiveness.
“Through the support and guidance of the UAE’s leadership, EDB is successfully delivering its mandate, ensuring it maintains its position as a catalyst for economic growth and a key financial enabler of the UAE’s Industrial Development Strategy.
“The upgraded rating by S&P with a stable outlook demonstrates continued confidence in EDB’s ability to deliver its mandate and the strength of its strategic approach to development financing.
“This reinforces the Bank’s pivotal role in redefining the national industrial landscape while contributing significantly to the diversification and resilience of the national economy; driving the UAE’s global competitiveness.”
Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB, said: “Our focus on prioritizing economic impact across key development sectors and raising our contribution to the nation’s industrial GDP are setting EDB up for long-lasting success and rapid lending growth.
“This AA credit rating by S&P Global is a testament to the Bank’s successful delivery of its mandate and patient debt approach to financing projects. It is also affirmation of EDB’s strategic role as a provider of innovative financing solutions and banking services that drive the trust and confidence of clients to grow their business with us while enabling economic growth.
“With the upgraded credit rating, we are emphasizing EDB’s successful track record to become the reference development bank in the region.
“This contributes to the expansion of national industrial capabilities across the emirates in line with the UAE’s sustainable development vision”.
Since April 2021, EDB has concentrated on specialized financing to boost the growth of five priority sectors essential to the United Arab Emirates’ national development strategy: manufacturing, advanced technology, food security, healthcare, and renewables.
This strategic focus has significantly increased the bank’s total financing, reaching a record AED11.3 billion ($3.1 billion) since the strategy’s inception.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
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Employment grew for the 16th consecutive month as companies expanded.
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According to a recent PMI report, Qatar experienced its fastest non-energy sector growth in almost two years in June, driven by surges in both existing and new business activities.
The Purchasing Managers’ Index (PMI) headline figure for Qatar reached 55.9 in June, up from 53.6 in May, with anything above 50.0 indicating growth in business activity. Employment also grew for the 16th month in a row, and the country’s 12-month outlook remained robust.
The inflationary pressures were muted, with input prices rising only slightly since May, while prices charged for goods and services fell, according to the Qatar Financial Centre (QFC) report.
This headline figure marked the strongest improvement in business conditions in the non-energy private sector since July 2022 and was above the long-term trend.
The report noted that new incoming work expanded at the fastest rate in 13 months, with significant growth in manufacturing and construction and sharp growth in other sectors. Despite the rising demand for goods and services, companies managed to further reduce the volume of outstanding work in June.
Companies attributed positive forecasts to new branch openings, acquiring new customers, and marketing campaigns. Prices for goods and services fell for the sixth time in the past eight months as firms offered discounts to boost competitiveness and attract new customers.
Qatari financial services companies also recorded further strengthening in growth, with the Financial Services Business Activity and New Business Indexes reaching 13- and nine-month highs of 61.1 and 59.2, respectively. These levels were above the long-term trend since 2017.
Yousuf Mohamed Al-Jaida, QFC CEO, said the June PMI index was higher than in all pre-pandemic months except for October 2017, which was 56.3. “Growth has now accelerated five times in the first half of 2024 as the non-energy economy has rebounded from a moderation in the second half of 2023,” he said.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
