Officials signing the Memoranda of Understanding.

The Abu Dhabi Fund for Development (ADFD) has signed three MoUs with Turkmenistan aimed at strengthening economic and development cooperation through investment in vital sectors that would benefit economies of both countries.

The first MoU involved the establishment of an investment company in Turkmenistan with a target capital of Dhs370 million ($100 million), whereby investment opportunities and development projects are to be presented for ADFD’s considerations.

In the initial stage, ADFD and Turkmenistan will contribute Dhs58.7 million ($16 million) for investment in vital sectors such as energy, agriculture, tourism and industry. This amount will be shared equally by the two parties. According to the agreement, the Turkmen government will present project proposals to ADFD for financing, after which the Fund will take its decision based on its feasibility assessments.

The second MoU provides for studying the possibility of investing in a project to establish a chemical industry complex in Turkmenistan for Dhs642.7 million ($175 million) to produce polyvinyl acetate.

The third MoU creates the possibility to study opportunities to finance infrastructure projects in various sectors, including renewable energy and air transport, thereby promote cooperation between ADFD and Turkmenistan.

The memoranda were signed by Mohamed Saif Al Suwaidi, Director-General of Abu Dhabi Fund for Development; and Rahimberdi Jepbarov, Chairman of the Board of the State Bank for Foreign Economic Affairs of Turkmenistan; in the presence of Berdiniyaz Matiyev, Deputy Minister of Foreign Affairs of Turkmenistan; Ahmed Alhay Alhameli, Ambassador of the UAE to Turkmenistan; Serdarmammet Garajaev, Ambassador of Turkmenistan to UAE and several other officials from both sides.

“The memoranda of understanding reflect ADFD’s keenness to expand its investment and economic partnerships with the government of Turkmenistan,” Al Suwaidi said. “They also represent a quantum leap in the economic cooperation between the UAE and Turkmenistan.”

He noted that the two-decade relationship between ADFD and Turkmenistan was founded on trust and mutual respect. “The Fund has been working as a strategic partner of Turkmenistan for about 20 years to meet sustainable development goals. The MoUs will further contribute towards achieving development priorities of both sides through meaningful investments.”

Ambassador of Turkmenistan praised the UAE over the constructive role it played through ADFD in financing infrastructure projects in developing countries. He pointed out that the MoUs would strengthen bilateral relations. “They will create new economic opportunities for us, which will help us to drive the growth of economies of the two countries,” he said.

Abu Dhabi Fund seeks to forge strategic partnerships with various countries and contribute to their economies by financing development projects.

The Fund, which started operations in Turkmenistan in 1999, had financed the rehabilitation of the Archman Hospital and establishment of a speciality hospital in Ashkhabad at a total cost of about Dhs182 million. The projects contributed to the overall development of the country’s health sector.

It may be mentioned that the Abu Dhabi Fund for Development has been supporting the country’s effort towards driving energy transition at home and around the world by financing innovative renewable-energy projects. These initiatives have had powerful impact on the economies and the environment of beneficiary countries.

The Fund has consistently increased its portfolio of such projects, having funded 90 of them over a decade at a total value of about Dhs4.7 billion ($1.3 billion). Cumulatively generating 9,755MW of electricity, these projects benefited 65 countries by supporting their economies and improving the quality of life.

Mohammed Saif Al Suwaidi, Director General of the Fund, expressed gratitude to the UAE’s leadership in investing in the just cause. “Such initiatives form the core of development and the UAE realised that years ago, which prompted it to host the headquarters of the International Renewable Energy Agency (IRENA),” he said.

Collaboration with IRENA: In 2013, ADFD in collaboration with IRENA launched an initiative with a commitment of Dhs1.28 billion ($350 million) to support renewable energy projects in developing countries.

Since then, the initiative led to the production of about 208MW of clean energy through 32 projects in 26 countries that gave more than a million people access to clean and affordable energy. The projects also improved health and education services, stimulated economic development and helped protect the environment.

In the same year, the UAE Ministry of Foreign Affairs and International Cooperation (MoFAIC) launched the UAE-Pacific Partnership Fund with an aim to step up the UAE’s development cooperation with the Pacific island countries across a variety of sectors.