Emirates Development Bank launches UAE’s first agritech loans programme

Image: Emirates Development Bank

Emirates Development Bank has unveiled the UAE’s first ‘AgriTech Loans Program’.

In line with this launch, the development bank will allocate Dhs100m in financing support for the country’s food security sector.

Emirates Development Bank aims to empower farms, local growers and food suppliers by supporting their adaptation and modernisation efforts through the programme.

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.

“Leveraging our competitive and accessible financing solutions, we aim to facilitate the adoption of advanced technology and cutting-edge solutions, contributing to the realisation of this strategic vision.”

Aligned with UAE’s National Food Security Strategy 2051

The UAE’s National Food Security Strategy 2051 aims to make the UAE the world’s best on the Global Food Security Index by 2051. The strategy outlines plans to develop a comprehensive national system based on enabling sustainable food production through using modern technologies, while enhancing local production.

Through this initiative, the bank aims to help deliver innovative solutions to agricultural operations and optimise yields. The financing support provided will facilitate the implementation of precision agriculture techniques, state-of-the-art irrigation systems and advanced crop monitoring tools, propelling the sector towards more sustainable practices and heightened productivity.

Emirates Development Bank to support farmers and agritech companies

The programme is targetted at farmers, local producers, technology providers, equipment suppliers, and those involved in the agriculture support ecosystem.

The programme offers green and brownfield project financing, CAPEX and working capital financing, and medium-term loans or working capital amounts of up to Dhs5m with competitive rates and a long tenor of ten years.

The bank’s agritech financing programme also provides grace periods of up to 2.5 years. It is offered with a loan-to-value (LTV) ratio of up to 90 per cent.

This feature aims to provide increased financial flexibility and support to borrowers in the agricultural technology sector, facilitating the swift adoption of transformative technologies.

Al Naqbi added: “Emirates Development Bank’s commitment to empowering the agricultural community aligns with the UAE’s national agenda, which places utmost importance on achieving food self-sufficiency and reducing dependence on imports. By fostering collaboration between financial institutions and the agriculture sector, Ethe bank aims to catalyse the growth of domestic food production, enhance supply chain resilience and contribute to the nation’s economic development.”

The bank has a mandate to approve Dhs30bn in financing support to 13,500 companies within its five priority sectors – food security, renewables, manufacturing, technology and healthcare – by 2026.

In recent news, in May, the bank added ‘renewables’ to its priority sectors for financing, as part of its commitment to support the UAE’s net zero initiatives and sustainable development agenda.

The development bank is now two years into an ambitious five-year strategy aimed at empowering SMEs and large corporates in five priority sectors such as renewables, manufacturing, technology, healthcare and food security.