Initiative is expected to positively impact recipient sectors directly and indirectly throughout 2020
The Abu Dhabi Fund for Development (ADFD) has announced a $272.2m initiative to support national companies during the COVID-19 pandemic.
The initiative runs to the end of 2020 and aims to provide concessionary loans to national companies operating in sectors crucial to the UAE economy including healthcare, food security and manufacturing. It also considers firms in sectors that are bearing the brunt of the COVID-19 related disruption to business and economic activity, the statement said.
The initiative was launched under the directives of His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister, Minister of Presidential Affairs and Chairman of ADFD’s Board of Directors, and is supported by His Highness Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs and International Cooperation, and Deputy Chairman of ADFD’s Board of Directors.
“Under the directives of the UAE leadership and His Highness Sheikh Mansour bin Zayed Al Nahyan, ADFD is determined to support our national companies during these exceptional circumstances. The health of our national companies is a crucial driver of our long-term growth, resilience and development. By pledging a $272.2m allocation for concessionary loans to national companies through 2020, we ensure that businesses in key industry sectors can access the support they need to recover from the current crisis, continue operations, and bolster the national economy during this time,” said Mohammed Saif Al Suwaidi, director general of ADFD.
The announcement is said to align with the ADFD’s remit of supporting national companies, and sees the Fund take decisive action to safeguard the UAE’s long-term economic growth and development.
Al Suwaidi added, “As a nation, the UAE has always taken a long-term approach to sustainable development, at home and around the world. We are confident that our national companies will emerge from this current situation stronger and more resilient, as we continue the path of sustainable growth and economic diversification. Our nation’s economic strength is underpinned by our national companies that drive innovation and employment. This initiative shows that we stand ready to support these companies and collaborate with them in building a resilient and prosperous future for the nation.”
The initiative joins with the ADFD’s enhanced remit of supporting the local economy while catalysing and co-investing in global development projects. Over the last decade, ADFD has facilitated business deals worth $4.4bn for UAE companies in its overseas projects, the statement noted.