Banking & Finance

Beijing-based AIIB to open first overseas office in UAE

By Pramod Kumar

April 20, 2023, 5:44 AM

UAE’s minister of industry and advanced technology Sultan Al Jaber and AIIB president Jin Liqun sign agreement to establish the AIIB’s interim operational hub in Abu Dhabi

Beijing-based multilateral funding agency Asian Infrastructure Investment Bank (AIIB) will open its first overseas office in the UAE as part of its expansion drive.

AIIB and the UAE signed a host member agreement to officially open an interim operational hub at the Abu Dhabi Global Market.

The UAE joined as a founding and permanent member of AIIB in 2015. The bank’s capital is $100 billion, with the UAE’s contribution to its capital amounting to $1.2 billion.

Sultan Al Jaber, the UAE’s minister of industry and advanced technology and UAE governor of AIIB, said that the operational 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.

“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 de-risking investments and supporting emerging economies. This will boost economic growth, help eradicate poverty and accelerate climate action,” he added.

The agreement comes ahead of the UAE hosting the Cop28 conference from November 30 to December 12 at Expo City Dubai.

Jin Liqun, president and chair of the board of directors of AIIB, said: “As a founding member of the AIIB, the UAE actively contributes to the bank’s sound governance and rapid growth.”

The establishment of the operational office in the UAE gives the bank a robust platform to manage its growing investment portfolio, he noted, adding it will enhance client and member engagement, project monitoring and implementation services across the globe.

The Abu Dhabi Fund for Development represents the UAE in the funding agency.

Mohamed Saif Al Suwaidi, director-general of Abu Dhabi Fund for Development and UAE alternate governor of AIIB, said that the agreement aligns with the bank’s strategic expansion and strengthens its presence in the Middle East and North Africa region.

AIIB, which currently has 106 members, has financed 212 projects with a total value of $40.4 billion.