Abu Dhabi fund disburses AED3.9b concessional loans

|By Arabian Post Staff| Abu Dhabi Fund for Development (ADFD) dispensed AED3.9 billion in concessionary loans to support four projects and AED1.7 billion in government grants to finance 13 projects last year.

Since inception in 1971 till end-2016, ADFD’s total development funding and investment portfolio registered AED80 billion, with the number of beneficiary countries reaching 83. Of this, concessionary loans totalled AED35 billion, while UAE government grants accounted for AED42 billion. ADFD’s company and private equity fund investments amounted to an estimated AED3 billion.

In contrast, ADFD’s development funding in 2015 recorded AED1.9 billion, of which AED1.2 billion comprised government grants, and AED700 million was expended as concessionary loans. By end-2015, aggregate development funding and investments constituted AED76 billion expended across 78 countries.

ADFD supports a variety of sectors, such as infrastructure, education, health, housing, transport, irrigation, agriculture and renewable energy that directly improve the lives of millions of people in beneficiary countries.

A report by the Development Assistance Committee (DAC) of the Organisation for Economic Co-operation and Development (OECD) named the UAE the top world aid donor in the field of official development assistance (ODA) for 2016. The country also attained the number one slot in 2013 and 2014. In this context,

Having received a total of AED13.2 billion across 87 projects, the transport sector claimed a majority share of ADFD’s funding – 18 per cent – over the last 45 years. Furthermore, the Fund spent AED9.7 billion on financing 91 projects in the health and social services sector, representing almost 13 per cent of the total expenditure. Approximately 10 percent of the funds – AED7.6 billion – went to 92 strategic projects within the water and electricity sector.

The Fund expended nine per cent on the housing sector, having implemented 45 community housing projects worth an estimated AED7.3 billion. The agriculture, irrigation and land reclamation sector accounted for nine per cent of the total funds – AED6.7 billion – across 56 projects. The remaining 36 per cent was allocated across a number of projects in various sectors.

By end-2016, ADFD channelled 76 per cent of its funding to Arab countries, having financed 339 development projects valued at AED58 billion. Amounting to six percent of the total funds, Asian countries received AED4.6 billion in development finance across 66 projects. African countries were the recipients of AED3.3 billion across 74 projects, making up four per cent of the funding. Furthermore, 14 per cent, approximately AED10.7 million was utilised to fund 18 projects in other geographic locations particularly, Latin America and Europe.