Asian Infrastructure Investment Bank, with its focus on financing sustainable infrastructure, will be key to achieving Paris Agreement goals
Asian Infrastructure Investment Bank (AIIB) has signed an agreement to establish its first Interim Operational Hub at Abu Dhabi Global Market, which will become its first overseas office.
AIIB is a multilateral development bank whose mission is financing infrastructure with sustainability at its core. With UAE hosting the COP28 later this year, the issue of climate finance remains a key concern for countries who are being asked to accelerate and raise ambition on climate action.
The Host Member agreement was signed by Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and UAE Governor of the AIIB, and Jin Liqun, President of AIIB.
The bank was established in Beijing in January 2016 and has since grown to 106 approved members worldwide. It has a capital of $100 billion and is AAA-rated by the major international credit rating agencies. As a founding member, UAE’s contribution to its capital is close to $1.185 billion. It has financed 212 projects with a total value of $40.37 billion.
The operational office would serve as 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 where it is needed the most.
Dr Al Jaber, who is also the COP28 President-Designate, said that the agreement to host the overseas operational office of the AIIB reflects the UAE’s commitment to enhancing cooperation with international organisations and institutions focused on sustainable economic development for developing countries.
“The world is playing catch up on the goals of the Paris Agreement and the most significant obstacle we face is capital,” said Dr Al Jaber.
“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.”
Dr Al Jaber’s remarks come as preparations for COP28 are underway, with the UAE hosting the conference from 30 November to 12 December at Expo City Dubai.
“I have just returned from the Spring Meetings in Washington DC, as well as the G7 meeting in Japan. At both of these major global events, climate finance took center stage,” added Dr Al Jaber.
“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.”
President Jin added: “As a founding member of the AIIB, the UAE actively contributes to the bank’s sound governance and rapid growth. 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.”
0 comments