ADFD awards Dhs53m in financing to Bloom for knowledge economy

The Abu Dhabi Fund for Development (ADFD) has extended Dhs53 million in financing on preferential terms to Bloom Education, making the company one of the first beneficiaries of the Fund’s Dhs1 billion initiative launched last year.

The drive was aimed at helping national companies operating in vital economic sectors.

The agreement was signed by Mohamed Saif Al Suwaidi, Director-General of ADFD; and Dr Rashid Khalfan Bin Amer Althakhri, member of the Board of Governors of Brighton College in the UAE, which are operated by Bloom Education, in the presence of Khalifa Al Qubaisi, Deputy Director General of ADFD, as well as other officials representing both sides.

Commenting on the occasion, Al Suwaidi said, “We are pleased to extend our support to Bloom Education. Education is of critical importance to us, especially as the UAE focuses on building a knowledge economy.” He said that the initiative was in line with the directives of Sheikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister, Minister of Presidential Affairs and Chairman of the Board of Directors of ADFD, to enable national companies to maintain their performance and upscale their operations.

Al Suwaidi added, “The Fund places the national economy as a top priority. Emirati companies are the key drivers of our economy and we are committed to supporting them. We will ensure that they maintain their performances and emerge stronger. Their success is the UAE’s success, as well as our achievement.”

Dr Rashid expressed his gratitude to ADFD, stating that the Fund’s contribution is important to the work of Bloom Education. “This is a recognition of our continuous effort to strengthen the UAE’s education sector. The financing will help us perform better as we make bigger plans for the future. It also comes at the right time, because it supports the hardship assistance we have provided to many of our pupils’ families who have been impacted by COVID-19. This assistance enabled pupils to continue their schooling with us.” Dr. Rashid reaffirmed the company’s continued commitment to the UAE’s education sector, highlighting its impressive track record in operating schools that have been ranked “outstanding” in the UAE. “Bloom Education is a leading organisation in the Middle East by virtue of its notable achievement of delivering the highest quality of international education,” he said.

Bloom Education is one of the UAE’s leading companies in the education sector. Since opening its first school in 2011, it now operates eight schools, delivering the highest quality of education to more than 8,000 pupils supported by 950 employees.

“The ADFD initiative met with an overwhelming response from national companies,” said Rashid Al Kaabi, Director of Investment at the Fund, adding that the Fund’s Technical Committee had already studied requests from 51 companies over the past months, out of which it had identified 20 as prospective candidates. “A series of applications has been approved, while the remainder are under review, with the final decision expected to be taken within the first half of this year.”

To qualify for funding under the Dhs1 billion initiative, a company must be registered in the UAE, while its annual returns should be no less than Dhs80 million.

The initiative is one of several measures taken by the ADFD to support the national economy and encourage joint investment in developing projects and implementing them on a global scale. Over the past 10 years, the Fund has provided Dhs16.5 billion in financing for Emirati companies that have implemented projects abroad.

The Abu Dhabi Fund for Development has recently signed three MoUs with Turkmenistan aimed at strengthening economic and development cooperation through investment in vital sectors that would benefit economies of both countries.

The first MoU involved the establishment of an investment company in Turkmenistan with a target capital of Dhs370 million ($100 million), whereby investment opportunities and development projects are to be presented for ADFD’s considerations. In the initial stage, ADFD and Turkmenistan will contribute Dhs58.7 million ($16 million) for investment in vital sectors such as energy, agriculture, tourism and industry. This amount will be shared equally by the two parties. According to the agreement, the Turkmen government will present project proposals to ADFD for financing, after which the Fund will take its decision based on its feasibility assessments.

The second MoU provides for studying the possibility of investing in a project to establish a chemical industry complex in Turkmenistan for Dhs642.7 million ($175 million) to produce polyvinyl acetate. The third MoU creates the possibility to study opportunities to finance infrastructure projects in various sectors, including renewable energy and air transport, thereby promote cooperation between ADFD and Turkmenistan.

The memoranda were signed by Mohamed Saif Al Suwaidi, Director-General of Abu Dhabi Fund for Development; and Rahimberdi Jepbarov, Chairman of the Board of the State Bank for Foreign Economic Affairs of Turkmenistan; in the presence of Berdiniyaz Matiyev, Deputy Minister of Foreign Affairs of Turkmenistan; Ahmed Alhay Alhameli, Ambassador of the UAE to Turkmenistan; Serdarmammet Garajaev, Ambassador of Turkmenistan to UAE and several other officials from both sides.

WAM