UAE Provides Interest-Free Loans to Manufacturing Companies

The UAE has started accepting applications for funding from a one billion dirham fund. This fund offers interest-free loans to industrial companies intending to establish new factories, expand production capacity, and produce essential goods domestically.

The Emirates Development Bank (EDB), in collaboration with the Ministry of Industry and Advanced Technology (MoIAT), has activated the online application system for the National Industrial Resilience Fund (NIRF).
The goal of this initiative is to strengthen domestic production capacity, reduce dependence on imports, and enhance the resilience of the country’s supply chains.
This five-year fund provides zero percent interest loans and an annual service fee of 0.75 percent.
Eligible companies can receive up to 100 million dirhams for each corporate group. This funding can cover up to 80 percent of the eligible capital costs of the project.

Both new and active factories can apply; however, receiving funding depends on meeting the fund's conditions and the credit approval of the Emirates Development Bank.

This fund prioritizes investment in strategic and vital industries, domestic production of imported goods, and projects that strengthen the country’s supply chains.
Eligible businesses can submit their applications through the Emirates Development Bank website.
Hassan Jassim Al-Nuwais, Deputy Minister of Industry and Advanced Technology of the UAE, stated that the establishment of this fund will empower the UAE's industrial sector and enhance its global competitiveness.

Which industries will benefit from this funding?
This fund focuses on strategic industries based on a confirmed list of eligible products.
Eligible sectors include:
- Pharmaceutical industries
- Production of medical equipment and supplies
- Food production
- Food processing industries
- Other strategic industries approved by the fund's joint steering committee
This initiative also encourages manufacturers to utilize advanced technologies, including industrial artificial intelligence and automation.

This initiative is designed to strengthen the country's industrial self-sufficiency, support domestically produced products, ensure the security of vital supply chains, and accelerate the adoption of advanced technologies in the manufacturing sector.

Source: Gulf Times