Today's Edition
Jessi Amason (ABU DHABI)
The Abu Dhabi Fund for Development (ADFD) has announced a significant milestone in its 52-year history, with Dh216 billion in cumulative development financing and investments across 106 countries worldwide.
The fund’s recently released Annual Report 2023 showcased a number of achievements and progress updates on the fund’s ongoing projects, including a significant 36.84% increase in countries where the fund invested, a rise from 19 countries in 2022 to 26 countries in 2023.
The report underscored trends in ADFD’s strategy, including expanding partnerships, focusing on economic development, and notably aiding developing countries in their sustainability endeavours.
Messages from the Board
His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Chairman of the Presidential Court, and Chairman of ADFD’s Board of Directors, released a message outlining the fund’s strategic objectives.
“In the face of escalating global challenges, achieving sustainable development 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.
“Recognising the challenges that developing countries encounter in executing their development programmes, ADFD’s role involves providing essential funds and establishing global partnerships.
“To promote comprehensive development, ADFD strategically focuses on sustainable growth in the national economy, emphasising the vital role of the private sector. Prioritising the private sector in key activities and offering essential support ensure the growth of businesses across vital domains.
“ADFD further contributes to the development of national exports through the Abu Dhabi Exports Office, which facilitates access of UAE exporters to global markets.
“The diverse accomplishments of the Fund are a testament to the dedicated efforts of its employees. Their diligence has been key to realising our leadership’s vision for sustainable economic and social development.”
His Highness Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs and Deputy Chairman of the ADFD Board of Directors, stated: “The UAE stands as a global exemplar of sustainable partnerships and international cooperation. At the forefront of this effort is ADFD.
“It is 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.
“The Fund’s approach revolves around the sustainability of development action, demonstrated through strategic project financing across vital sectors and collaborative initiatives with partners. The organisation is committed to adopting measures that preserve natural and economic resources, emphasising the global importance of sustainability.
“In enhancing the national economy, ADFD plays a pivotal role in promoting investments and boosting trade, particularly prioritising the national private sector. Through initiatives like the Abu Dhabi Exports Office, ADFD facilitates the growth of UAE companies, ensuring their access to global markets and contributing to the creation of a resilient and diversified economy.
“As a global role model, ADFD has proven excellence in achieving sustainable economic development and driving international cooperation. With an ambitious vision and innovative strategy, ADFD is set to achieve further accomplishments both domestically and on the international stage.”
Director General of the ADFD, H.E. Mohamed Saif Al Suwaidi, stated: “In the global pursuit of sustainable development, nations try to foster resilient societies and cultivate economic prosperity. As stewards of progress, ADFD is committed to catalysing transformative change through its financed projects, with a commitment to safeguarding the prosperity of both present and future generation.
“Sustainability is at the heart of ADFD. Our aim is to strike a balance between economic growth and social advancement in the nations benefiting from ADFD’s initiatives. In 2023, we are happy to celebrate the Fund’s remarkable accomplishments, which have been made possible due to the unwavering support of our leadership and its dedication to realising sustainable development objectives in developing nations.”
SustainabilityAs of 2023, ADFD’s various instruments supported projects in 17 of the world’s 20 countries most vulnerable to the repercussions of climate change. Under the fund’s initiatives on sustainable development, ADFD finances a total of 73 projects in 52 countries at a total financing value of Dh4.6 billion.
In another notable contribution to sustainability, the report revealed that projects meant to boost renewable energy have produced a total of 265MW of power, benefitting 21 countries and directly contributing to the creation of 88,000 jobs.
Through the UAE-Pacific Partnership Fund, projects to support the renewable energy transition reduced a total of 84 tonnes of CO2 from 2013-2023, with $3.7 million in savings on fossil fuels.
During the UN Climate Conference (COP28) hosted in the UAE in late 2023, ADFD hosted the 91st Arab Coordination Group meeting, where the group announced an allocation of $10 billion until 2030 to support the clean energy transition in developing nations.
Investments
ADFD’s investments amounted to Dh12.6 billion across seven investment instruments and 16 companies in 26 countries, according to the report.
By sector, the largest share of investments were made in the tourism sector at 24%, followed by the industrial sector at 23%, and investment holdings at 22%.
Top countries for investment were Morocco at 22% of the investment total, followed by Uzbekistan at 20%, Egypt at 12%, Sudan at 11%, and the UAE at 10%.
ADFD made Dh78 billion in deposits in Central Banks in developing countries, up 39.03% from Dh56.1 billion in 2022, according to the report.
Loans and Grants
The fund’s 2023 concessionary loans included a Dh110 million project to construct an energy transmission line in Tanzania and another Dh110 million project to provide the city of Kifa, Mauritania with potable water.
In terms of development grants, the fund has allocated over Dh270.7 million for four development initiatives to date.
A Dh34.1 million project in Chad bolsters the country’s emergency response by supplying ambulances, fire engines, and buses.
The fund allocated grant for two projects in Indonesia, the first of which includes a Dh56.2 million project supporting regional development programme in central Java’s Surakarta and neighbouring areas. Additionally, the fund allocated Dh93.66 million to construct a 100-bed UAE-Indonesia Hospital for Cardiac Diseases in Surakarta’s Solo Techno Park.
From 2013-2023, ADFD allocated a total of approximately Dh4.6 billion each to development projects in Jordan and Morocco through the Gulf Development Fund.
Primary projects in Jordan include Dh1.4 billion in support of three crucial energy projects to support sustainable electricity, Dh985 million across 16 transport projects, and Dh955 million across five healthcare projects.
In Morocco, important development initiatives include funding of Dh1.56 billion spread across 13 transport projects, Dh892 million for housing unit construction, and Dh447 million for water networks.
Through the GCC Development Programme, the fund has allocated Dh9.2 billion to the Kingdom of Bahrain, with notable projects including a Dh3.1 billion grant among three housing sector projects and Dh937 million for the Mohammed bin Khalifa Specialist Cardiac Centre.
Domestically, the Abu Dhabi Exports Office (ADEX), established by ADFD in 2019 to expand national exports, received Dh3.2 billion in financing from 2020-2023, with 14 regional and global agreements, and 17 financing agreements with international institutions.
