UAE’s leading financial entity, Abu Dhabi Fund for Development (ADFD) has signed a series of Memorandum of Understanding (MoUs) with the Government of Turkmenistan, to enhance economic and development cooperation through investments in the key sectors of both countries.
The first MoU includes the establishment of a joint investment company in Turkmenistan with a target capital of $100 million, which will invest in sectors such as energy, agriculture, tourism, and industry.
The fund said in a statement that it will have an initial capital of $16 million that will be jointly provided by ADFD and the Turkmen government. According to the agreement, the Government of Turkmenia will send project proposals to ADFD for funding, after which the Fund will make its decision based on its feasibility assessments.
“The Memorandum of Understanding reflect ADFD’s keenness to expand its investment and economic partnerships with the Government of Turkmenistan. They also represent a quantum leap in the economic cooperation between the UAE and Turkmenistan. The Fund has been working as a strategic partner of Turkmenistan for about 20 years to meet sustainable development goals. The MoUs will further contribute towards achieving development priorities of both sides through meaningful investments.”
According to ADFD, a separate agreement was inked to study the possibility of investing in a venture to set up a $175 million worth chemical industry complex in Turkmenistan to produce polyvinyl acetate.
The Turkmen government and the Abu Dhabi Fund have also agreed to strengthen their economic cooperation and to explore opportunities for financing infrastructure projects in various sectors, including renewable energy and air transport.
Serdarmammet Garajaev, Ambassador of Turkmenistan to UAE commented, “The MoUs would strengthen bilateral relations. They will create new economic opportunities for us, which will help us to drive the growth of economies of the two countries.”
ADFD is an autonomous national institution affiliated with the Emirate’s government that funds projects in developing countries. The fund, which began operations in Turkmenistan in 1999, had previously funded the rehabilitation of the Archman Hospital and established a specialty hospital for $49 million (Dh182 million) in Ashkhabad. The projects contributed to the overall development of the health sector of the country.