Emirates Development Bank (EDB) has launched an innovative lending initiative called the Agritech Funding Program, with a substantial budget of $27 million. This program aims to provide financial support to various stakeholders involved in the agriculture value chain, including farmers, local producers, equipment suppliers, and startups.
The primary goal of the Agritech Funding Program is to foster a sustainable and thriving national agriculture sector, thereby positioning the UAE as a global frontrunner in agricultural advancements. EDB envisions empowering farms, local growers, and food suppliers by assisting them in their endeavors to adapt and modernize, ultimately contributing to the nation's food security.
Ahmed Al Naqbi, the CEO of Emirates Development Bank, emphasized the paramount importance of UAE's food security. He stated that it is the bank's highest priority to transform the nation into a regional powerhouse for local food production, aligning perfectly with the National Food Security Strategy 2051.
By offering accessible and competitive financing solutions, EDB aims to facilitate the widespread adoption of cutting-edge technologies and advanced solutions. The ultimate objective is to contribute to the realization of the strategic vision outlined in the National Food Security Strategy 2051.
The UAE's ambitious National Food Security Strategy 2051 strives to position the country at the pinnacle of the Global Food Security Index by 2051. It encompasses comprehensive plans to develop a robust national system that fosters sustainable food production through the integration of modern technologies, while also promoting local production.
Recognizing the need to embrace the latest technologies, the Agritech Funding Program tackles the existing challenges faced by the agricultural industry while fostering its evolution. EDB seeks to deliver innovative solutions that optimize agricultural operations and maximize yields. The financing support provided will enable the implementation of cutting-edge techniques such as precision agriculture, state-of-the-art irrigation systems, and advanced crop monitoring tools. This will lead the sector towards sustainable practices and heightened productivity.
The target beneficiaries of the Agritech Funding Program include farmers, local producers, technology providers, equipment suppliers, and participants in the agriculture support ecosystem. The program offers a wide range of financing options, including green- and brownfield project financing, capital expenditure financing, working capital financing, and medium-term loans. Borrowers can access competitive rates and enjoy extended repayment tenures, providing them with the financial flexibility to invest in transformative technologies.
Furthermore, EDB's Agritech Funding Program includes grace periods of up to 2.5 years and a Loan-to-Value (LTV) ratio of up to 90%. These features aim to support borrowers in the agricultural technology sector, enabling them to swiftly adopt and integrate transformative technologies into their operations.
Al Naqbi reiterated EDB's commitment to empowering the agricultural community, emphasizing its alignment with the UAE's national agenda of achieving food self-sufficiency and reducing dependence on imports. By fostering collaboration between financial institutions and the agriculture sector, EDB aims to catalyze the growth of domestic food production, enhance supply chain resilience, and contribute to the nation's overall economic development.
Aligned with its mission to foster a healthy, sustainable, and self-reliant economy, EDB strives to provide financing support of Dh30 billion to 13,500 companies within its five priority sectors – food security, renewables, manufacturing, technology, and healthcare – by 2026. The launch of the Agritech Funding Program signifies another significant step towards fulfilling this mandate, showcasing EDB's unwavering commitment to supporting the growth of vital sectors and driving sustainable economic progress in the UAE.
Play audio
No comments