UAE: Industrial Development Bureau to insure industrial facilities in Abu Dhabi
Source: Middle East Insurance Review | May 2020
The Industrial Development Bureau (IDB) of the Abu Dhabi Department of Economic Development (ADDED) has revealed the provision of a new service covering the registration of industrial project mortgage contracts for licensed industrial facilities in the industrial registry.
The move is to enable industrial facilities in obtaining financial opportunities from accredited banks and financial institutions in the UAE through their application of terms and conditions of the insurance mortgage, said ADDED in a press statement.
IDB Executive Director Mohammed Munif Al Mansouri explained that the new service is one of the important initiatives created by the bureau to insure industrial projects in the Emirate, while also ensuring the continuity of their production and the development of their operations through the provision of safe and necessary financial support.
Mr Al Mansouri called on owners of industrial facilities in Abu Dhabi licensed through the IDB to take advantage of this service and study the possibilities of obtaining insurance mortgage for their facilities.
The industrial insurance mortgage is a contract applicable on the licensed industrial project registered in IDB’s industrial registry, comprising all or some of the moral elements of the industrial project, said Mr Al Mansouri. The duration of the industrial mortgage lasts for five years from the date of the contract’s issuance and can be renewed for a similar period by mortgaging agencies comprising banks and financial institutions.
He further noted that seven banks operating in the UAE have already signed industrial mortgage contracts with about 32 industrial facilities in Abu Dhabi. The banks include First Abu Dhabi Bank (FAB); Abu Dhabi Commercial Bank (ADCB); Emirates NBD (ENBD); Arab Bank for Investment and Foreign Trade (Al Masraf); National Bank of Fujairah (NBF); Dubai Islamic Bank (DIB); and Mashreq Bank. M