Abu Dhabi Fund for Development (ADFD) operates within flexible parameters to better adapt to each beneficiary nation. It tailors a unique approach to sustain projects that aim to improve living standards and empower people to be part of their country’s growth. ADFD’s operations are divided into two main activities development funding and
Direct development funding is ADFD's most important financial activity; it plays a key role in shaping the growth of these countries. Towards this priority, the Fund offers loans and grants to finance development projects.
ADFD's development funding involves the following activities:
ADFD offers concessionary loans to finance vital projects in developing countries; to achieve sustainable economic and social development. Projects funded by ADFD focus on key sectors for economic growth such as infrastructure, transport, electricity, housing, energy, water and agriculture as well as healthcare and education.The development loans offered by ADFD are long-term in nature, have affordable interest rates and are in line with the standards of the Organisation for Economic Co-operation and Development (OECD). Projects are meticulously studied to assess their technical and economic impact, and if funded, to ensure they meet agreed upon objectives.
Government Grants Administration
ADFD shoulders the responsibility to manage grants provided by the Abu Dhabi government to aid beneficiary countries by financing vital and development projects. The Fund's responsibilities include the direct stage-by-stage supervision of projects and allocation of aid initiatives in accordance with pre-set agreed upon objectives.
To ensure the continuity of its active involvement in development funding, ADFD undertakes diverse investment activities that enhance its available resources. The Fund's investment strategy is characterized by prudent management of its available liquidity; investing in various financial instruments.
The Fund's investments are divided as follows:
ADFD invests in companies in various countries around the world either through full ownership or equity sharing in partnership with public or private companies. The Fund's strategy focuses on investment in companies that serve the most important sectors notably; tourism, industry and private equity funds, thus enhancing the role of the private sector within the beneficiary country, reflecting positively on economic development, in addition to providing many job opportunities.
ADFD adopts a highly flexible and secure strategy in liquidity management to maximize its revenues. This is achieved through channelizing investments to various financial instruments that enjoy high levels of security, including bonds and bank deposits. The liquidity management strategy is designed to generate additional revenues and meet ADFD's financial obligations in a timely manner.