UAE Ministry of Industry and Advanced Technology (MoIAT) has signed a Memorandum of Understanding (MoU) with Mashreq, one of the leading financial institutions in the UAE, to initiate a partnership to drive the growth of the manufacturing industry in the country.
The move is part of the ministry’s “Make it in the Emirates” initiative that seeks to attract industrialists, investors, innovators, and entrepreneurs to leverage the UAE’s unique value proposition and set up a base in the country.
It also supports “Operation 300bn” to position the UAE as a global industrial hub and boost the manufacturing sector’s contribution to the country’s GDP.
Under the terms of the agreement, Mashreq will promote sustainable growth in vital industrial sectors by providing its comprehensive suite of competitive financing solutions as well as advisory and banking services to local and foreign stakeholders in this field. In addition, Mashreq will allocate a fund of $272 million (AED 1 billion) for the industrial sector in the country.
Mashreq will provide its financing solutions, including Shari’ah-compliant products, to encourage the application of advanced technology in the industrial sector to reduce its carbon footprint. The solutions include green loans and bonds, sustainability-linked loans and bonds, transitional loans and bonds, social loans, trade finance, structured finance, and capital investments.
Further, Mashreq will make its advanced digital banking proposition available to manufacturing companies and build a custom application interface to offer tailored money management solutions and advice. In addition, the bank will support the ESG supply chain financing program, finance business expansion plans, and promote growth in the exports of UAE companies through the Mashreq Global Network.
The partnership will benefit companies of all sizes, from SMEs to large corporates. Among the target clients are food manufacturing companies affiliated with the UAE Food and Beverage Business Group, as per the statement.
Mr. Joel Van Dusen, Senior Executive Vice President, Head of the Corporate and Investment Banking Group at Mashreq, said that, “In line with its environmental, social, and governance (ESG) strategy, Mashreq is at the forefront of supporting corporates with sustainability-oriented financing solutions that enable them to adopt climate-friendly practices. We are keen to leverage our wide range of offerings to promote sustainable and green manufacturing as one of the main enablers of economic diversification in the UAE.”
