The Asian Infrastructure Investment Bank will set up its first overseas office in Abu Dhabi to expand its operations in the region.
A host member agreement to establish the office at Abu Dhabi Global Market was signed by Dr Sultan Al Jaber — Minister of Industry and Advanced Technology, President-designate of the Cop28 summit and UAE governor of the AIIB — and Jin Liqun, president of the AIIB, the bank said on Wednesday.
The agreement to host the overseas operational office of the AIIB reflects the UAE’s commitment to enhancing co-operation with international organisations and institutions focused on sustainable economic growth for developing countries, Dr Al Jaber said.
The office will be 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, especially in the Global South, he said.
“The world is playing catch-up on the goals of the Paris Agreement and the most significant obstacle we face is capital,” Dr Al Jaber said.
“We need to scale up climate finance to accelerate clean energy, adaptation, and support loss and damage.
"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.”
The comments come as the UAE, the Arab world’s second-largest economy, prepares to host the Cop28 summit from November 30 to December 12.
The issue of climate finance remains a key concern for countries as they focus on cutting emissions to limit global warming.
Global investments in energy transition technology must quadruple to $35 trillion by 2030 to stay in line with commitments made under the Paris climate agreement, according to a recent report by the International Renewable Energy Agency.
Investments in renewable energy technology reached a record $1.3 trillion last year.
But that figure must rise to about $5 trillion annually to meet the key Paris accord target of limiting temperature increases to 1.5ºC above pre-industrial levels, the Abu Dhabi-based agency said in its World Energy Transitions Outlook 2023 preview.
“I have just returned from the Spring Meetings [of the World Bank and the International Monetary Fund] in Washington DC, as well as the G7 meeting in Japan," Dr Al Jaber said.
"At both of these major global events, climate finance took centre stage.
“The world needs to act faster and go further to ensure the availability, accessibility and affordability of climate finance. The AIIB can play an instrumental role in moving from ambition to action.”
Based in Beijing, AIIB has 106 members, with the UAE joining as a founding and permanent member in 2015.
The bank has $100 billion in capital and the UAE’s contribution is about $1.185 billion, the statement said.
The Abu Dhabi Fund for Development is mandated to represent the UAE in the bank.
AIIB has financed 212 projects so far with a total value of $40.37 billion to support the economic development in different countries.
“As a founding member of the AIIB, the UAE actively contributes to the bank’s sound governance and rapid growth,” Mr Liqun said.
”The establishment of the operational office in the UAE gives the bank a robust platform to manage its growing investment portfolio.
"It also enhances our client and member engagement, project monitoring and implementation services across the globe.”
