Abu Dhabi Fund For Development (ADFD) signed a series of agreements with Turkmenistan to create a joint investment company and assess the feasibility of backing a chemical complex, among other projects.
The joint company, which has a $100 million capital target, will invest in sectors such as energy, agriculture, tourism and industry, the fund said in a statement on Wednesday. It will have initial capital of $16m that will be jointly provided by ADFD and Turkmenistan's government.
The Turkmen government will also present project proposals to ADFD for it to conduct feasibility studies.
“The memoranda of understanding reflect ADFD’s keenness to expand its investment and economic partnerships with the government of Turkmenistan,” Mohamed Al Suwaidi, director general of ADFD, said. “They also represent a quantum leap in the economic co-operation between the UAE and Turkmenistan.”
A separate agreement was signed to study the possibility of investing in a project to establish a $175m chemical industry complex in Turkmenistan to produce polyvinyl acetate, according to ADFD.
The Turkmen government and the Abu Dhabi fund also agreed to solidify their economic co-operation and study opportunities to finance infrastructure projects in various sectors, including renewable energy and air transport.
ADFD is an autonomous national entity affiliated to the emirate’s government that finances projects across developing countries.
The fund, which started operations in Turkmenistan in 1999, had previously financed the rehabilitation of the Archman Hospital and established a specialty hospital in Ashkhabad for Dh182m.
In November, an ADFD-owned entity, Abu Dhabi Uzbek Investment Company, signed an agreement with DP World to explore investment opportunities in the transport and logistics sector in neighbouring Uzbekistan.