UAE opens AED 1bn zero-interest fund to manufacturers
Emirates Development Bank opened applications for the AED 1 billion National Industrial Resilience Fund.
· Last verified: 5 Nov 2026 (Emirates Development Bank, Arabian Business)
Summary
- Emirates Development Bank opened applications for the AED 1 billion National Industrial Resilience Fund.
- Financing carries zero interest, a 0.75% annual service fee and a AED 100 million group cap.
- Eligible factories can cover up to 80% of capital costs, including strategic inventory.
The latest
Manufacturers in the UAE can now apply for zero-interest financing covering up to 80% of eligible project costs, after Emirates Development Bank opened the online portal for the National Industrial Resilience Fund in partnership with the Ministry of Industry and Advanced Technology. The fund is worth AED 1 billion, equivalent to $272.3 million, and runs for five years.
Details
- The numbers: The fund totals AED 1 billion ($272.3 million) over a five-year term. Financing is offered at zero interest until the end of the programme, with an annual service fee of 0.75%. A single group can borrow up to AED 100 million, and capital expenditure financing can reach 80% of the cost of a qualifying project.
- How to apply: Applications are submitted electronically through the Emirates Development Bank website. Both new and existing manufacturers are eligible, subject to the fund's conditions and the bank's own credit assessment, meaning approval is not automatic for applicants that meet the sector criteria.
- Who qualifies: Projects must sit in strategic sectors drawn from an approved list of eligible products, including pharmaceuticals, medical supplies, and food production and processing. A joint governance committee can add other vital industries to that list, leaving the eligible universe open to expansion during the programme.
- What it funds: Eligible uses span new factories, production lines and machinery, plant expansions, integrated projects, strategic inventory, supplier payments and working capital. Emirates Development Bank said the fund places particular emphasis on industrial artificial intelligence and automation.
- The stated goals: The fund's declared priorities are localising vital industries, substituting imports, and building resilient domestic supply chains — a package aimed at reducing the exposure of UAE manufacturers to external sourcing shocks rather than simply expanding output capacity.
- Origin: The Cabinet established the fund in April 2026. It forms part of the National Strategy for Industry and Advanced Technology and the Make it in the Emirates programme, placing it inside an existing policy framework rather than standing as a one-off facility.
- The officials: Hassan Jasim Al Nuaimi, undersecretary at the Ministry of Industry and Advanced Technology, said the fund supports the localisation of vital industries and strengthens supply chain resilience. Ahmed Mohamed Al Naqbi, chief executive of Emirates Development Bank, said the bank would provide targeted financing through the partnership with the ministry.
- Not specified: Neither the bank nor the ministry set out a deadline for applications, a target number of beneficiary companies, or a disbursement timetable for the AED 1 billion across the five-year period.
Background
Emirates Development Bank is the state-owned lender mandated to finance priority sectors. Make it in the Emirates is the UAE's flagship campaign to attract manufacturers and shift production onshore, operating under the National Strategy for Industry and Advanced Technology.
Between the lines
The eligible-product list points at where the state sees its sharpest vulnerabilities: pharmaceuticals, medical supplies and food. Covering strategic inventory, supplier payments and working capital — not just plant and machinery — suggests the design targets the fragility of existing manufacturers' cash cycles as much as the cost of building new capacity. The governance committee's power to add industries keeps the perimeter adjustable.
What's next
Watch for the first approved loans and the names of beneficiary companies, any expansion of the eligible-product list by the joint governance committee, and disclosure of how much of the AED 1 billion is committed in year one.