How Are SMEs Benefiting from UAE’s ‘Operation 300 Billion’?

The UAE's industrial sector has seen a huge boost in financing recently, thanks to strong support from both government and private players. This collaboration is really helping to push industrial growth and achieve the ambitious goals set out in the "Operation 300 Billion" initiative.

Having solid financial backing is key because a well-funded industrial sector is crucial to building a diversified and resilient national economy. It's not just about growth—it's about ensuring sustainability, fostering innovation, and securing long-term economic prosperity.

For example, banks in the UAE provided AED5.537 billion in funding for the manufacturing sector during just the first nine months of 2024. This brought total loans to the sector to a historic high of over AED94.85 billion, according to data from the UAE's Central Bank. The sector's financing portfolio grew by about 6.2 percent in those nine months, starting at AED89.315 billion at the end of 2023. And if you look back over the past decade, it's grown by more than 37 percent since 2015.

Key institutions like Emirates Development Bank (EDB), the Khalifa Fund for Enterprise Development (KFED), and the Mohammed Bin Rashid Establishment for SME Development are playing major roles in supporting industrial projects, especially ones focused on innovation and technology. They offer accessible financing and training programmes that really help entrepreneurs and SMEs compete in the expanding industrial space.

EDB, for instance, is taking a comprehensive approach to help local factories grow, providing various solutions and products to support this sector, which is one of their five top priorities. Their vision is aligned with the national strategy for advanced industry and technology, which is all about making the UAE a global industrial hub by 2031 under the "Operation 300 Billion" initiative.

KFED is also a big player, contributing to the financing and development of SMEs in the industrial sector, with a strong focus on local entrepreneurs and industrial innovation. They offer diverse financing options and specialised training to make sure businesses thrive.

Meanwhile, the Mohammed Bin Rashid Establishment for SME Development serves as a major platform for promoting entrepreneurship in the UAE. They provide flexible financing programmes and consulting services to help businesses become more competitive.

According to Jamal Saleh, Director General of the UAE Banks Federation, the UBF is fully committed to supporting the industrial sector to speed up economic growth and diversification in line with the "Operation 300 Billion" initiative. He pointed out that the banking sector, under the guidance of the Central Bank, plays a key role in financing this sector by coming up with solutions that keep up with industry developments and meet the needs of things like the Fourth Industrial Revolution, sustainability, and the circular economy.

He also emphasised how crucial the industrial sector is for the UAE's economic diversification strategy. In 2023, the sector contributed more than 11 percent to the country's GDP, and there's a lot of potential for further growth thanks to the frameworks set by the Ministry of Industry and Advanced Technology.