Leading UAE financial institutions have committed AED18 billion in new financing to support manufacturers and industrial businesses, reinforcing the country’s broader push to expand local production and strengthen supply chain resilience.
The commitments were announced during Make it in the Emirates 2026, bringing the total to AED40 billion in industrial financing pledged during last year’s edition of the forum.
Mashreq made the largest commitment, pledging AED10 billion in financing targeted toward manufacturers through green loans, sustainability-linked financing, trade finance, and supply chain programmes.
Emirates Development Bank committed AED6 billion, while Dubai Islamic Bank pledged AED2 billion to support industrial expansion and localization initiatives.
The financing push comes as the UAE accelerates efforts to strengthen domestic manufacturing capacity under its industrial strategy, which aims to increase the sector’s contribution to GDP to AED300 billion by 2031.
Mashreq said demand for industrial financing has grown significantly as the UAE’s industrial ecosystem matures and businesses increasingly seek capital for expansion, working capital, and trade finance needs.
The bank indicated that strategic sectors, including food security, pharmaceuticals, advanced manufacturing, and large-scale industrial production, are expected to receive a significant share of the financing support.
The renewed focus on industrial financing also reflects growing regional concerns around supply chain resilience and energy security following disruptions linked to tensions surrounding the Strait of Hormuz.
Banks are also increasing their emphasis on sustainability-linked financing, particularly as manufacturers exporting to Europe prepare for stricter carbon-related trade regulations, such as the European Union’s Carbon Border Adjustment Mechanism.
Industry executives say manufacturers are increasingly reassessing energy usage, sourcing strategies, and operational resilience as part of long-term industrial planning.
The latest commitments underscore the increasingly central role of financial institutions within the UAE’s industrial diversification strategy, where access to capital is being positioned as a key enabler of domestic production growth and export competitiveness.
The announcement also highlights the broader evolution of the UAE’s banking sector, with lenders increasingly expanding exposure to industrial, sustainability, and infrastructure financing as part of long-term economic development priorities.
