UAE, AIIB sign agreement to establish interim operational hub in Abu Dhabi
Concessional loans from AIIB and MDBs are instrumental in unlocking private sector capital
Dubai: The UAE and the Asian Infrastructure Investment Bank (AIIB) have signed an agreement to establish the AIIB’s Interim Operational Hub in Abu Dhabi Global Market. The agreement was signed by Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology, COP28 President-Designate, and UAE Governor of the Asian Infrastructure Investment Bank, and Jin Liqun, President of the Asian Infrastructure Investment Bank. This marks the first overseas office of the AIIB.
During discussions, Al Jaber and Liqun spoke about the emerging opportunities for the AIIB to strengthen its role in the region as a leading development bank. They also emphasized the importance of reforming international financial institutions (IFIs) and finding practical solutions to scale up financing of global climate action through these institutions.
Read more
- UAE fintechs’ good run will continue as embedded finance, digital wallets take hold
- Abu Dhabi launches $100 million fund to pull in iconic global restaurants
- Pakistan posts first current account surplus in over 2 years
- Emirates Development Bank, Emirates Islamic partner to provide credit guarantee scheme for SMEs
Al Jaber stated that the establishment of the overseas operational office of the AIIB demonstrates the UAE’s commitment to enhancing cooperation with international organizations and institutions focused on sustainable economic development for developing countries. The office will serve as a strategic destination in the Middle East and the world, supporting the Bank’s development agenda and financing infrastructure projects to achieve sustainable economic growth, particularly in the global south.
Al Jaber further emphasized the importance of scaling up climate finance to accelerate clean energy, adaptation, and support loss and damage. “The world is playing catch up on the goals of the Paris Agreement and the most significant obstacle we face is capital. We need to scale up climate finance to accelerate clean energy, adaptation, and support loss and damage,” he said. “International Financial Institutions, such as AIIB, can play a critical role in desriking investments and supporting emerging economies. This will boost economic growth, help eradicate poverty, and accelerate climate action.”
The agreement aligns with the bank’s strategic expansion and strengthens its presence in the Middle East and North Africa region, according to Mohamed Saif Al Suwaidi, Director-General of Abu Dhabi Fund for Development, UAE Alternate Governor of AIIB. The UAE joined AIIB as a founding and permanent member in 2015, and its contribution to the bank’s capital amounts to approximately $1.185 billion. The bank currently has 106 members, and it has financed 212 projects with a total value of $40.37 billion, contributing to economic development and improving the quality of life for communities in beneficiary countries.