Emirates Development Bank (EDB) has secured a vote of confidence from Fitch Ratings, a leading credit rating agency. On April 3rd, 2024, Fitch affirmed the bank's long-term issuer default rating at "AA-," indicating a very high creditworthiness. This positive assessment was accompanied by a stable outlook, signifying Fitch's belief in EDB's ability to maintain its financial strength in the foreseeable future.
The "AA-" rating underscores EDB's critical role in supporting the United Arab Emirates' (UAE) economic development goals. Fitch highlighted the bank's "well-defined policy and development role" within the national agenda. This translates to a strong likelihood of continued government support for EDB, which bolsters its financial stability.
Fitch's report also expressed optimism regarding the UAE's operating environment in 2024. The agency expects these favorable conditions to contribute to EDB's ongoing financial health.
This positive rating comes on the heels of EDB's significant contribution to the UAE's economy in 2023. The bank's financing activities dedicated to the country's development strategy rose by 80% compared to the previous year, exceeding AED 4 billion (USD 1.1 billion).
Emirates Development Bank CEO, Ahmed Mohamed Al Naqbi, welcomed the Fitch rating affirmation. He emphasized that this recognition reflects EDB's "solid financial position" and its commitment to supporting the UAE's economic diversification agenda. Al Naqbi stressed that the rating, coupled with the stable outlook, reinforces the bank's long-term capacity to "finance the right transactions" within its priority sectors. This, he added, aligns with the government's vision for driving sustainable economic growth.
The "AA-" rating with a stable outlook positions EDB as a reliable partner for businesses and investors seeking to participate in the UAE's ongoing economic development. It signifies the bank's financial strength and its commitment to playing a key role in the country's future prosperity.