UAE joins AIIB as prospective founding member

Abu Dhabi: The UAE has become a prospective founding member of the Asian Infrastructure Investment Bank (AIIB), an initiative proposed by Chinese President, Xi Jinping, and established at the Asia-Pacific Economic Cooperation Forum, held in Indonesia, in October 2013.

AIIB will prioritise funding for infrastructure projects in Asia, whilst creating a new platform for regional and international cooperation to support developing Asian countries. The bank will focus energy and power, transportation, telecommunications, rural infrastructure, agriculture development, water supply and sanitation, environmental protection, urban development, logistics and other productive sectors.

The UAE joins 34 other prospective founding members of the bank. They include Saudi Arabia, Kuwait, Oman, Qatar, Egypt and Jordan from the Middle East. Asian members include China, India, Indonesia, Malaysia, South Korea and Singapore.

Russia, the UK, Germany, France, Italy, Austria, and Luxembourg are also members. Nominations for countries to join as founding members of AIIB closed on March 31st.

Following the UAE leadership’s directives, Dr Sultan Bin Ahmad Sultan Al Jaber, Minister of State, led discussions on behalf of the UAE with his Chinese counterpart, Shi Yaobin, Vice-Minister for the Ministry of Finance, and was instrumental in arranging the UAE’s membership of the AIIB.

Dr Al Jaber said, “This milestone has been possible due to the wise directives and unlimited support of the UAE’s leadership. In the light of joint strategic ties between the UAE and China, and their mutual interests in fuelling growth and infrastructure development in developing countries, both countries have partnered to set up a strong international platform to actively drive development efforts.

“With the AIIB’s objectives being closely associated with the capabilities of Abu Dhabi Fund for Development, the UAE’s Leadership has mandated the fund to represent the UAE on AIIB’s Board of Governors.

“Being a founding member of AIIB will boost the prime economic role played by the UAE regionally and internationally, by focusing efforts on development projects with great socio-economic benefits. With its unrivalled experience in implementing development and support projects, the UAE will add huge value to AIIB,” Dr Al Jaber added.

He explained, “Asia has significant infrastructure needs. AIIB will play a pivotal role in driving Asia’s development, which is all the more urgent given the region’s rapidly growing economies and population.”

The Abu Dhabi Fund for Development was established to help developing countries to achieve growth and development through assistance in the form of concessionary loans, development grants and equity participation.