ADFD offers Dh 20.9 bn in development aid and loans

Abu Dhabi, 9 Dec.05 (WAM) -- The Abu Dhabi Fund for Development (ADFD) has extended over the past 30 years up to end of 2005 a total of Dh 20.9 billion in form of developmentloans, assistance and grants to brotherly and friendly developingcountries across the world.

''Fifty one countries have benefited from the ADFD assistanceprogramme since its inception in 1971 up to end of 2005.

Dh 20.9 billion has been used to finance 242 projects in Arab,African, Asian and European countries,'' Saeed Al Rumaithi,ADFD Director General, said in the fund's annual report.

In 2005, the fund extended loans worth Dh 561.9 millionto seven countries (three Arab and four Asian) for health, water,transport and sewerage projects.

In addition to financial grants and easy-term loans, the ADFDhas expanded its operations to include direct investment in privateenterprises to increase private sector participation in the economicdevelopment of recipient countries. This also helps ease burdenof debts, replenish stock of foreign currencies, create jobopportunities and improve living standards of local population.

To date such direct investment and joint ventures mountedto Dh 501 million.

The report pointed out to assistance it had providedin October to earthquake-hit countries in Asia, mainly Pakistan.

The UAE has emerged over the course of the past three decadesas a major donor of international aid, even though, at the sametime, it has been invloved in the heavy expenditure requiredfor its own development programme.

Development aid is one of the important features of the UAEforeign policy since the establishment of the UAE federation.

The foreign aid policy springs from its deep -rooted Arab characteristicsand from its commitment to high tolerant Islamic principles andvalues.The overseas aid programme was originally born out ofthe belief that a country like the UAE, well-endowed with hugenatural resources, had a duty to help other who were less fortunate.

In 1971, therefore, on instruction of the late SheikhZayed bin Sultan Al Nahyan, the (ADFD) was set upas a public autonomous development agency to extend loans, grantsand financial assistance to under-developed brotherly and friendlycountries to push their efforts to for socio-economic developmentahead.

The move was unique as the UAE was among a few countrieswhich adopted such an aid policy in institutional form.

Infrastructure projects, the report said, had received thelion's share of loans and grants offered by the fund and theGovernment of Abu Dhabi, development aid is also managed by thefund.

The financial assistance is made available in the formof concessionary loans, grants and direct investments offeredwith a low rate of interest, lengthy period of repayment anda long grace period. A typical loan is repayable in 8 to 20 yearsand carries an interest rate at 3 to 6 per cent with a graceperiod of 3 to 8 years.

In line with the policy adopted by the ADFD to facilitatesustainable development in recipient countries, its emphasishas been on projects that upgrade infrastructure (roads, airports,seaports,water, electricity, communications, agriculture andhousing), improve health and educational services and generateemployment opportunities.