UAE Reaffirms Commitment To Green Infrastructure And Private Capital Mobilisation At AIIB Meeting

The UAE took part in the Asian Infrastructure Investment Bank (AIIB) Board of Governors' annual meeting in Samarkand, Uzbekistan. Mohamed Saif Al Suwaidi, Director-General of the Abu Dhabi Development Fund for Development and the UAE’s Alternate Governor at AIIB, represented the country. The meeting evaluated past achievements and discussed future strategies, focusing on collaboration to tackle climate change challenges through accessible finance and sustainable infrastructure investments.

Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology and UAE Governor of AIIB, highlighted the bank's role as a leading multilateral development institution with a strong sustainable development portfolio. He stated, "The world is increasingly being shaped by the emergence of new growth economies, the acceleration of the energy transition and the rapid rise of AI. Our goal is to maximise our impact on global development and create an environment that drives investment into infrastructure that can underpin sustainable and inclusive growth, particularly renewable energy and advanced technology."

Dr. Al Jaber emphasised expanding private capital mobilisation as AIIB aims to lead more transactions. He noted, "AIIB’s commitment, leadership and investments towards developing cutting-edge, green and resilient infrastructure is critical to the next decade of progress and prosperity. The faster we deploy these investments, particularly in emerging economies, the faster their benefits can be scaled." This approach aims to strengthen AIIB's market position while addressing global challenges.

Climate Action Priorities

Al Suwaidi stressed prioritising climate-resilient infrastructure to address urgent climate action needs. He said, "The urgency of climate action demands that we prioritise climate-resilient infrastructure while unlocking the potential of private capital to drive large-scale impact. Our strength lies in collaboration – by joining forces with multilateral institutions, national agencies, and the private sector, we can accelerate transformative solutions that drive economic growth and environmental resilience."

Enhancing Support for Members

AIIB has taken steps to enhance support for its members. After reviewing its Capital Adequacy Framework (CAF), it issued a US$1 billion guarantee for IBRD loans to boost lending capacity. The bank also promotes policy harmonisation among multilateral development banks (MDBs) to streamline processes. As a major co-financing partner with the World Bank and Asian Development Bank, AIIB continues to play a significant role in global financing.

Economic Growth Projections

The meeting occurred amid projections of global economic growth at 3.3% in 2025, slightly above 3.2% in 2023 and 2024 but below pre-pandemic levels. Similar or lower growth rates are expected in the medium term, which may hinder achieving critical development goals. Given this outlook, AIIB plans to prioritise infrastructure investments essential for long-term sustainable growth.

The UAE became a founding member of AIIB in April 2015 with a contribution of approximately US$1.185 billion to its capital. Since then, AIIB has grown to include 106 members and funded 232 projects worth US$44.41 billion overall. The bank focuses on improving social and economic conditions across Asia through infrastructure financing initiatives.

In light of evolving global challenges, scaling up efforts towards mobilising private capital remains crucial for AIIB's strategy. Developing financing mechanisms that attract large-scale private investment while mitigating risks will be essential for future success in achieving sustainable development goals worldwide.

With inputs from WAM