UAE ‘fully supports’ efforts to expand NDB membership
THE New Development Bank (NDB) has been influential in promoting sustainable development and infrastructure projects across the member countries, Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs of the United Arab Emirates (UAE) said on Friday.
The NDB held its ninth annual meeting in Cape Town, which officially opened on Friday.
The NDB is a multilateral development bank established by Brazil, Russia, India, China and South Africa (BRICS) with the purpose of mobilising resources for infrastructure and sustainable development projects in emerging markets and developing countries.
In September 2021, Bangladesh, the UAE and Uruguay joined the NDB. In December 2021, the NDB admitted Egypt.
The NDB is a platform to foster co-operation in infrastructure and sustainable development with BRICS and upcoming new members.
Al Hussaini said: “The UAE fully supports the ongoing efforts to expand the bank’s membership. Within the NDB framework, one of our key priorities is the promotion of local currency lending. This priority is vital for diversifying the bank’s funding sources, offering a better pricing mix to its borrowers by mitigating exchange rate risks.
“Furthermore, private sector participation in NDB projects plays an important role in driving innovation and economic growth. In this light, the UAE encourages the NDB to continue fostering partnerships with private enterprises. We also commend the NDB for its proactive approach in implementing the Capital Adequacy Framework recommendations,” he said.
The NDB general strategy for 2022–2026 was to maintain its prudent risk and financial management practices, including keeping a conservative equity-to-asset ratio of at least 25%.
Al Hussaini said by actively shifting the risk appetite definition towards shareholder-defined limits, the NDB had taken a critical step towards increasing its lending headroom.
Looking to the future, it was imperative that the NDB continued its collaborative efforts with other multilateral development banks in the areas of co-financing and knowledge sharing, he added.
“By working together, the NDB can amplify its impact and drive sustainable development on a global scale,” Al Hussaini said.
BUSINESS REPORT