Tuesday 06 June 2023 - 4:35:14 am

ADFD, Turkmenistan to enhance economic, development cooperation

ABU DHABI, 3rd February, 2021 (WAM) -- Abu Dhabi Fund for Development (ADFD) today signed three memoranda of understanding (MoUs) with the Government of 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 AED370 million (US$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 AED58.7 million (US$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 AED642.7 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 AED182 million. The projects contributed to the overall development of the country’s health sector.