ADFD unveils Dh1b drive to support national firms

Dubai - The initiative is projected to positively impact recipient sectors both directly and indirectly throughout 2020.

Abu Dhabi Fund for Development (ADFD), a leading national entity in the forefront of several global development projects, has announced a Dh1 billion initiative to support national companies during the Covid-19 pandemic, further augmenting the billions of dirhams of economic stimulus measures the federal and local governments have already rolled out.
The ADFD initiative, for the duration of 2020, provides concessionary loans for national companies operating in sectors crucial to the UAE economy - such as healthcare, food security and manufacturing. It also considers firms in sectors that are bearing the brunt of the Covid-19 related disruption to business and economic activity, the fund said in a statement.
The fund said the new initiative dovetails with its remit of supporting the local economy while catalysing and co-investing in global development projects. "Over the last decade, ADFD has facilitated business deals worth Dh16.5 billion for UAE companies in its overseas projects."
The initiative has been launched under the directives of Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister, Minister of Presidential Affairs and Chairman of ADFD's Board of Directors; and is supported by Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs and International Cooperation, and Deputy Chairman of ADFD's Board of Directors, said the statement.
Mohammed Saif Al Suwaidi, Director General of ADFD, said the fund is determined to support national companies during these exceptional circumstances. "The health of our national companies is a crucial driver of our long-term growth, resilience and development. By pledging Dh 1 billion allocation for concessionary loans to national companies through 2020, we ensure that businesses in key industry sectors can access the support they need to recover from the current crisis, continue operations, and bolster the national economy during this time."
The Central Bank of the UAE has already rolled out a Dh270 billion stimulus package to support retail and corporate customers affected by Covid. The scheme consists of Dh50 billion from the CBUAE funds through collateralised loans at zero cost to all banks operating in the UAE and of Dh50 billion funds freed up from banks' capital buffers. The governments of various emirates also have taken initiatives, including fiscal and economic steps, to support the business sector involving billions of dirhams.
The ADFD's announcement is in line with its remit of supporting national companies, and sees the Fund take decisive action to safeguard the UAE's long-term economic growth and development. The initiative is projected to positively impact recipient sectors both directly and indirectly throughout 2020.
"As a nation, the UAE has always taken a long-term approach to sustainable development, at home and around the world. We are confident that our national companies will emerge from this current situation stronger and more resilient, as we continue on the path of sustainable growth and economic diversification. Our nation's economic strength is underpinned by our national companies that drive innovation and employment. This initiative shows that we stand ready to support these companies and collaborate with them in building a resilient and prosperous future for the nation," said Al Suwaidi.
In 2019, ADFD also launched the Abu Dhabi Exports Office to support national exporters and open new markets for them. ADEX boosts the competitiveness of UAE exports by offering financing and guarantees to overseas buyers sourcing goods and services from UAE exporters. In 2020, ADEX allocated Dh550 million to support the strategic expansion of the nation's export businesses.
- issacjohn@khaleejtimes.com