The International Finance Corporation (IFC) has provided over $2.3 billion in financing to UAE-based multinational companies by the end of 2024, reflecting the strength of cooperation between the two sides. During the last financial year, the Washington-based organization invested $56 billion in emerging markets.
Makhtar Diop, managing director of the IFC, told WAM on the sidelines of the World Governments Summit (WGS) 2025 in Dubai, that the UAE is one of the largest investors in renewable energy in Africa. He also emphasized the IFC’s commitment to strengthening collaboration with Emirati companies across various sectors and industries.
Facilitating UAE investments in emerging economies
The IFC is a member of the World Bank Group and the largest global development institution focused on the private sector in emerging markets. The organization is currently working on attracting more investments from UAE companies into Europe, Central Asia and Latin America. Diop added that the organization is also deploying all its financial tools and guarantees to facilitate Emirati investments in emerging economies.
The managing director also noted that the IFC is increasingly shifting towards equity investments, acknowledging that such investments come with higher risks and volatility. To address this, the IFC is developing risk mitigation mechanisms to manage challenges associated with investing in specific geographical regions. This would enhance the private sector’s capacity for growth and expansion.
He further stressed that the UAE plays a pivotal role in driving sustainable growth globally, affirming the IFC’s commitment to continued cooperation. He described the IFC’s relationship with Emirati companies as strategic, given its partnerships with multiple UAE firms investing across continents, particularly in key sectors that drive economic growth and contribute to long-term sustainable development.
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Advancing development projects in emerging markets
In a bid to identify and pursue strategic and high-impact development projects across emerging markets globally, the IFC and ADQ recently signed a memorandum of understanding.
The partnership establishes a framework for collaboration to mobilize capital and expertise for impactful investments. Under the framework agreement, the UAE’s ADQ and IFC will explore co-investment opportunities in key sectors, leveraging their respective strengths to drive sustainable economic growth.
Together, they will identify and develop projects that enhance food security, promote agricultural innovation and strengthen healthcare infrastructure. They will also explore opportunities to work jointly on investments in critical infrastructure such as energy security and sustainability, transport and logistics, and real estate and urban development to contribute to investee countries’ economic resilience, improve quality of life, and increase connectivity and competitiveness in a dynamic global landscape.
