Abu Dhabi Fund for Development Invests AED 216 Billion To Promote Global Sustainability

In 2023, the Abu Dhabi Fund for Development (ADFD) witnessed remarkable success, as its operational endeavours saw a significant surge in cumulative development and investment financing, surpassing AED216 billion. These funds played a pivotal role in bolstering the economic and social development initiatives of recipient countries.

The latest annual report from ADFD underscores its substantial contributions to development financing, reaching AED120.5 billion by December 2023. This figure encompasses AED66 billion in concessional loans and AED54.5 billion in government grants, benefiting 106 countries across diverse continents. These financial resources have been instrumental in achieving development goals, driving economic progress, and enhancing living standards for communities worldwide. Furthermore, ADFD facilitated the expansion of Emirati companies on the global stage through the Abu Dhabi Exports Office (ADEX), its export financing arm. Between 2020 and 2023, approximately AED3.2 billion was allocated to support national exports, empowering local businesses to thrive internationally.

In terms of investments, ADFD's total investments amounted to AED12.6 billion, distributed across seven key investment instruments and 16 companies spanning various sectors in 26 countries. Additionally, ADFD deposited AED78 billion with Central Banks in developing nations and earmarked AED5.3 billion in financing to bolster investment activities in recipient countries. As a result, ADFD's cumulative financing, investments, and bank deposits exceeded AED216 billion by December 2023. These achievements underscore the leadership's unwavering commitment to supporting ADFD's objectives, cementing its role as a global leader in advancing sustainable development initiatives.

Sustainable Projects

In the foreword of the Fund’s 2023 annual report, His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President of the UAE, Deputy Prime Minister, Chairman of the Presidential Court, and Chairman of the Board of Directors of Abu Dhabi Fund for Development, said: “In the face of escalating global challenges, achieving sustainable development and enhancing the improving societies in developing countries is crucial for ensuring their prosperity and stability. ADFD plays a crucial role in this pursuit, implementing sustainable development and investment projects that significantly contribute to economic and social progress. The enduring support of the leadership has been instrumental in ADFD’s milestones both locally and globally.”

His Highness Sheikh Mansour added that the Fund achieved success at the local and global levels due to the steady support of the leadership. “Recognizing the challenges that developing countries encounter in executing their development programs, ADFD’s role involves providing essential funds and establishing global partnerships. This support empowers nations to undertake strategic projects, driving sustainable development and economic activity.”

He emphasised that the Fund works to maintain the expansion of the national economy by strengthening the private sector's position, giving it precedence within its primary initiatives, and offering the assistance required for enterprises to expand into strategically important areas. To help local companies grow internationally, the Fund also supports the growth of national exports and offers financing facilities to importers of goods and services from the United Arab Emirates.

UAE: A Global Leader In Sustainable Relationships

His Highness Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs and Deputy Chairman of the Board of Directors of Abu Dhabi Fund for Development, said: “The United Arab Emirates stands as a global exemplar of sustainable partnerships and international cooperation. At the forefront of this effort is ADFD, a prestigious national institution instrumental in advancing economic and social development worldwide. Underpinned by the UAE’s forward-looking vision and the leadership’s guidance, ADFD has achieved many milestones over its 52-year history, championing economic and social transformation and prosperity for societies benefitting from its projects.”

His Highness Sheikh Abdullah highlighted the important role ADFD plays in boosting trade and investment in the country's economy. The Fund offers prospective growth possibilities and gives the private sector in the country priority when implementing strategic initiatives. It recognises its critical role in promoting economic development in the United Arab Emirates and operates both locally and internationally. Additionally, the Fund helps Emirati firms grow and gives national exports access to international markets through the Abu Dhabi Exports Office. This helps to create a strong and diverse economy. According to him, ADFD has established itself as a leading worldwide model that promotes international cooperation and sustainable economic development with a range of national and international organisations.

A Boost To Local Economies

His Excellency Mohamed Saif Al Suwaidi, Director General of the Abu Dhabi Fund for Development, said: “The remarkable achievements realized by the Fund in 2023 are attributed to the backing of our leadership and their commitment to attaining sustainable development objectives in developing nations. The Fund’s development financing and diverse investments surpassed AED216 billion, extending benefits to 106 countries across various continents.”

He emphasized that supporting the national economy remains a top priority for ADFD. “Consequently, we are dedicated to leveraging all available resources to bolster the domestic private sector and enhance its pivotal role both domestically and internationally. Moreover, we are committed to offering competitive financing solutions to boost national exports in global markets, thereby ensuring the realization of our objectives and further solidifying the UAE’s esteemed position on the global stage.”

He reaffirmed the Fund's dedication to continuing its development initiatives to help nations all around the world realise their development goals and objectives. These initiatives are in line with the adoption of innovative techniques and sustainable practices to advance success in several different industries.

Advancing Development Initiatives

 

The Abu Dhabi Fund for Development remains steadfast in its commitment to fostering economic and social advancement in developing nations through strategic development initiatives across key sectors such as renewable energy, agriculture, water, transportation, education, healthcare, and tourism. These endeavours are designed to bring about tangible improvements in communities and bolster the overall progress and prosperity of recipient countries.

Diversified Investment Ventures

In the realm of investments, ADFD has made remarkable progress, bolstering the financial resources of beneficiary nations, creating employment opportunities, and elevating living standards. Its investment portfolio spans strategic industries and sectors, facilitating partnerships between the public and private sectors to drive sustainable growth.

Empowering the National Economy

1. Abu Dhabi Exports Office (ADEX)

Central to its mission is the support of the national economy, epitomized by initiatives like the Abu Dhabi Exports Office (ADEX). Launched in 2019, ADEX aims to stimulate UAE exports, diversify revenue streams, and fortify economic competitiveness. With a dedicated allocation of AED 3.2 billion for 2020-2030, ADEX has been instrumental in assisting Emirati enterprises to expand their global footprint. It has forged 14 regional and global agreements and memoranda of cooperation while facilitating 17 financing arrangements with international institutions to bolster UAE industries worldwide.

2. Financing National Private Sector Entities

ADFD actively champions strategic projects geared towards bolstering the national economy. Recognizing the pivotal role of the national private sector, ADFD extends vital financial support to enable companies to scale their operations domestically and internationally. By providing financial backing and incentives, ADFD enhances the competitiveness of the private sector, thereby fostering economic growth within the UAE.

In 2023, ADFD facilitated several notable projects, including the financing of Masdar's solar energy station project in Azerbaijan, valued at AED 184 million. Additionally, ADFD supported Emirati firm Talc in financing agricultural ventures in Somalia, amounting to AED 40 million. Furthermore, ADFD allocated AED 177 million to bolster the Terminals Holding Group's rehabilitation project for Kabul Airport in Afghanistan.