The UAE has become a founding member of Asian Infrastructure Investment Bank (AIIB) in Beijing, an international financial institution that was first announced during the 2013 Asia-Pacific Economic Cooperation (APEC) session.

Dr Sultan Ahmed Al Jaber, UAE Minister of State led discussions on behalf of the UAE with the Chinese government and was instrumental in arranging the UAE’s membership of the AIIB.

Abu Dhabi Fund for Development (ADFD) was mandated to represent the country in AIIB Governors' Council as well as coordinate, manage and follow-up projects implemented through this partnership. The Articles of Agreement (AOA) was signed on behalf of the UAE by Mohammed Saif Al Suwaidi, director general of ADFD, carrying out the Fund’s mandate to represent the country as a founding member of AIIB.

With this, the UAE joins 57 other nations that have already become founding members in the Beijing-based institution.

The proposal to set up AIIB was initiated with the aim of establishing a new platform to promote regional and international cooperation in infrastructure development across Asia.

Dr Al Jaber said: "The signing of the AOA, establishing the Asian Infrastructure Investment Bank, is a historic moment for the UAE.”

“It articulates the vision of our wise leadership and the importance they attach to supporting infrastructure development projects. This agreement is crucial in paving the way for accelerating economic development across Asia. In addition to enhancing the country’s role within the global economy, the UAE’s affiliation to the institution as a founding member will support the country’s growing interests in Asia,” he added.

Expected to start official operations by the end of 2015, the bank seeks to provide new financial resources for infrastructure development and improvement across Asia, while maintaining balanced economic growth in the countries of the region while addressing the financial challenges facing infrastructure projects.

The bank will additionally promote investment activities, specifically in productive sectors that leverage available resources and support projects that translate a long-term economic impact on the region. In particular, AIIB will cater to the development needs of its least economically developed members, and encourage the private sector to invest in projects and initiatives with widespread development impact.

"The signing of this agreement with AIIB is aligned with the vision of the UAE leadership to promote international collaboration towards fulfilling the development goals of developing countries,” said Al Suwaidi.

“The UAE has been playing a prominent role in aiding emerging countries in their efforts to achieve sustainable development through extending developmental and humanitarian assistance. AIIB’s objectives are well aligned with the social, humanitarian and development aid program carried out by the UAE in more than 145 countries across the world.

“The UAE’s affiliation to AIIB as a founding member will boost international cooperation towards furthering development efforts across Asia. Additionally, it will give fresh impetus to the economies of Asian countries through the infusion of more funds to infrastructure projects that will help stimulate economic growth and create hundreds of new job opportunities,” he added.

Al Suwaidi also indicated that the bank will primarily focus on bridging the gap in the availability of adequate financial resources for infrastructure projects that have resulted in poor infrastructure investment in Asian countries.

The UAE was ranked as the largest donor of official development aid according to a report issued by the Development Assistance Committee of the Organisation for Economic Cooperation and Development (OECD) in 2013 and 2014. The country’s development aid in 2014 totalled Dh18 billion ($4.9 billion), or 1.17 percent of the nation’s GDP. – TradeArabia News Service