China’s AIIB expands global reach with Abu Dhabi office

Image courtesy: Asian Infrastructure Investment Bank

China’s Asian Infrastructure Investment Bank (AIIB) has opened its first overseas office in the Abu Dhabi Global Market (ADGM), as the multilateral development bank seeks to expand its operations in the region to drive sustainable growth.

AIIB has grown exponentially since its launch in 2016. The bank said its first overseas office in Abu Dhabi brings it closer to the front lines of its sustainable development work in the Middle East and Africa while laying the groundwork for future regional projects.

“This milestone reinforces our commitment to strengthen regional partnerships, promote sustainable development and support infrastructure projects for our Members,” said Luky Eko Wuryanto, AIIB’s vice president and chief administration officer.

“The UAE is an excellent choice for our first overseas venture. I am confident this new hub will advance our efforts to enhance sustainable development throughout the region and elsewhere.”

AIIB has funded 232 development projects with a total value of Dhs163.1bn, since its founding in January 2016. AIIB, ADGM

The projects have played a significant role in driving economic and social development, ultimately improving the quality of life.

“We are delighted and honoured by AIIB’s decision to open its office in Abu Dhabi,” said Saif Al Suwaidi, director general of Abu Dhabi Fund for Development and UAE’s alternate governor at the board of governors of AIIB.

“The move will enable AIIB to leverage our exceptional infrastructure and status as a global investment destination to drive forward its sustainable development agenda with greater momentum, in alignment with our common goals and aspirations.”

The new office in Abu Dhabi is expected to bridge the gap between AIIB and its partners. It will also give the bank better access to global financial centres, allowing it to sustain its growth trajectory. The bank currently has 106 members worldwide.

AIIB comes to the ADGM

Meanwhile, the attractiveness of ADGM has seen prominent global firms set up shop in ADGM in 2023 including Brevan Howard, Ardian, Goldman Sachs, Tikehau Capital, Blackstone, SBI Capital, Apollo, Fifth Wall, Fidera and Vibrant Capital.

Earlier in September, Canada’s Sagard Holdings expanded its global footprint with an office in the ADGM, cementing ties between the asset management firm and the GCC region. ADQ and Canada’s Bank of Montreal agreed to acquire minority equity stakes in Sagard in July. Gulf Business, Abu Dhabi 

In April, Ray Dalio’s family office said it was setting up a regional office in Abu Dhabi, building upon the firm’s existing hubs in the US and Singapore.

The latest data from the ADGM shows that a total of 102 asset managers, comprising investment firms and hedge funds, who manage 128 funds have set up shop in Abu Dhabi.

The financial hub granted 46 international and regional companies in-principle approval to operate within the ADGM in H1 2023, a 119 per cent increase compared to the year ago.

Read: Abu Dhabi’s ADGM posts robust growth in H1 2023