ADFD signs agreement with US based agency on private sector investments

Since its inception ADFD has funded development projects in 94 countries

 Mohammed Saif Al Suwaidi, director general of Abu Dhabi Fund for Development. Antonie Robertson/The National

Abu Dhabi Fund for Development on Tuesday signed a preliminary agreement with the US International Development Finance Corporation (DFC) to boost collaboration in financing private sector investments internationally with a focus on projects having a "transformative impact on communities" in developing countries.

As part of the agreement, the two entities will work closely together to consolidate their development collaboration, exchange information, identify prospects for development projects and enter project-specific cooperation agreements, the fund said in a statement on Tuesday. ADFD will also receive guidance in setting up a private sector financing programme that includes policies, manuals, procedures, and structure.

“We are delighted to sign this [agreement] that articulates ADFD’s keenness to work closely with international organisations to address the greatest challenges affecting sustainable development globally,” said Mohammed Saif Al Suwaidi, director general of ADFD in a statement. “In addition to strengthening the long-standing strategic partnership between the UAE and the USA, the [agreement] will allow us to catalyse private sector investments to maximise the socio-economic effects of our projects worldwide”.

Since its inception in 1971, ADFD has funded development projects in 94 countries, totalling Dh102 billion through concessionary loans, government grants, and investments.

ADFD’s portfolio includes equity stakes in numerous companies and private equity funds that play a major role in driving economic development and job creation in beneficiary countries. To date, the fund has invested in 17 companies across Africa and Asia serving various economic sectors.

“The need for investment and development is one of the challenges standing between the Middle East and a more prosperous, stable, and secure future for the region,” said Adam Boehler, chief executive of DFC, an independent agency of the US government.

“Through this collaboration ... together we can help chart new growth opportunities that will uplift underserved communities across a region of critical importance.”

DFC seeks to mobilise and facilitate the investment of US private capital and skills in the economic and social development of less developed countries and areas through offering financing and political risk insurance for investment projects.