Abu Dhabi Fund for Development (ADFD), the leading national entity for sustainable economic development, today signed a Memorandum of Understanding (MoU) with the United States International Development Finance Corporation (DFC), an independent agency of the Government of the United States of America.
The areas of collaboration outlined by the MoU include the exchange of knowledge and expertise between the two parties especially in the field of financing private sector investments internationally with a particular focus on projects having a transformative impact on communities in developing countries.
Under the agreement, ADFD will benefit from DFC’s long-standing experience, and receive guidance in setting up a solid Private Sector Financing program that includes policies, manuals, procedures, and structure.
The MoU was signed by His Excellency Mohammed Saif Al Suwaidi, Director General of ADFD, and Mr. Adam Boehler, Chief Executive Officer of DFC at the ADFD headquarters in Abu Dhabi. The signing ceremony drew the participation of Ambassador of the United States to the United Arab Emirates John Rakolta Jr., His Excellency Khalifa Al Qubaisi Deputy Director General of ADFD and several senior representatives of the two parties.
His Excellency Mohammed Al Suwaidi said: “We are delighted to sign this MoU that articulates ADFD’s keenness to work closely with international organisations to address the greatest challenges affecting sustainable development globally. In addition to strengthening the long-standing strategic partnership between the UAE and the USA, the MoU will allow us to catalyse private sector investments to maximise the socio-economic effects of our projects worldwide.”
Al Suwaidi added: “We are confident that our synergy will contribute to the economic and social stability of communities in developing countries through creating new economic opportunities and driving sustainable growth, also added that ADFD enjoys a diversified investment portfolio which plays a crucial role in stimulating sustainable economic growth in developing countries.”
For his part, Mr. Boehler said, “that 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. Through this collaboration between DFC and ADFD, together we can help chart new growth opportunities that will uplift underserved communities across a region of critical importance.”
Through their strategic partnership, ADFD and DFC will work closely together to consolidate their development collaboration, exchange information, identify prospects for development projects and enter project-specific cooperation agreements. In doing so, they are set to ensure an impactful contribution in addressing the challenges faced by developing countries and further enhance their ability to tackle emerging challenges in the international development arena. 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.
Since its inception in 1971, ADFD has funded development projects in 94 countries totalling to AED102 billion through concessionary loans, government grants, and investments. Spanning most of the key sectors, the Fund’s projects support socio-economic growth in developing countries and drive the implementation of the United Nations’ Sustainable Development Goals. ADFD’s investments 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.