Abu Dhabi Development Fund finances projects worth $202 million in 2021

This Abu Dhabi Development Fund (ADFD) Despite the challenges posed by the coronavirus pandemic, the company has funded 10 key development projects worth AED743.9 million ($202.55 million) in 2021 as part of its efforts to support new projects in developing countries.

The fund is Government of Abu DhabiThe company said in its annual report on Thursday that it made six soft loans totalling Dh642.5 million last year to five projects in Rwanda, Turkmenistan, Maldives, Lesotho and Conakry in Guinea.

During this period, the fund also allocated AED 101.4 million in government grants to develop four projects in Comoros, Ethiopia, Uzbekistan and Mauritania.

ADFD was established in 1971 to help developing countries strengthen their economies by providing concessional loans for development projects, as well as long-term investments and direct contributions.

Overall, the fund’s loans, grants, investments and deposits with central banks to support the foreign exchange reserves of developing economies totalled AED156.9 billion at the end of last year.

“The various strategic projects funded by ADFD and its programmes initiated in partnership with governments, national agencies and regional funds contribute to the achievement of the Sustainable Development Goals, improved quality of life and the goals of the 2030 Development Plan in 103 countries,” said Deputy Prime Minister , said Sheikh Mansour bin Zayed, Minister of the Presidential Court and Chairman of the ADFD.

“The fund actively pursues the UAE’s policy of economic diversification and enhances the global competitiveness of the country’s exports through strategic partnerships with the private sector.”

The fund’s projects — expected to help countries “grow their economies and improve their quality of life” — span infrastructure, transport, housing, agriculture and water, industry, renewable energy, education, health and tourism, the report said.

The fund also supports the development of the UAE’s private sector, and has allocated AED3 billion between 2021 and 2025 to finance projects that “have a tangible impact on the economy,” the report said.

The UAE, the Arab world’s second-largest economy, is seeking to diversify its economy away from oil and has launched a series of new initiatives to support other industries.

Last year, the UAE launched Operation 300 billion strategy Increase the contribution of the industrial sector to the country’s GDP from AED133 billion in 2021 to AED300 billion by 2031.

Abu Dhabi also recently unveiled a new industrial strategy aimed at more than doubling its size. Manufacturing in the Emirate AED 172 billion by 2031.

ADFD’s export finance arm, the Abu Dhabi Export Office, is also working to support UAE companies as they expand their business in international markets.

“In the past five years, the Fund has made great strides in fulfilling its development mission,” said Sheikh Abdullah bin Zayed, Minister of Foreign Affairs and International Cooperation and ADFD Vice-Chairman.

“The Fund’s flexible strategy and proactive approach have also contributed significantly to the diversification and competitiveness of the national economy.”

It said ADFD’s total investment in 22 countries was Dh11 billion since its inception, while the central bank’s bank deposits reached Dh41 billion in 2021.

By the end of 2021, the total amount of loans and government grants disbursed by the fund will be AED52 billion and AED52.9 billion respectively.

ADFD Director General Mohamed Al Suwaidi said: “The fund creates opportunities for national companies by enabling them to develop and implement projects in beneficiary countries.”

Updated: September 8, 2022 12:56 pm