UAE allocates $200 million to boost growth in low-income countries and reduce poverty

Al Hussaini said: “Under the leadership of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, and the leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, the United Arab Emirates is committed to achieving the UN SDGs by all possible means, including contributing to trust funds, which falls within the UAE’s strategy and vision for cooperation and coordination with regional and international development organizations and institutions. This boosts development projects and enhances the benefits obtained from projects, services and financing mechanisms provided, while reaffirming the UAE’s commitment to supporting international humanitarian initiatives.” .

Al Hussaini added that holding the Annual Meetings of the World Bank Group and the IMF in Africa, for the first time in almost 50 years, is a historic opportunity to address development issues with the assistance of more than 189 nations. This aligns with the UAE’s effort to reiterate its commitment to Africa, foreign aid, poverty reduction and the promotion of peace and prosperity. Since its founding in 1971, the United Arab Emirates has provided extensive foreign aid to boost economic growth in developing nations and provide basic social services. It leads the list of donors in terms of official development assistance granted compared to its GDP. He said: “The UAE’s foreign aid history began with its founding. It is now a vital financial, trade and logistics center for the Middle East, Africa and South Asia, thus linking its economy with the economies of those nations.”

Founded in January 2010, PRGT addresses the challenges facing low-income countries. It is a key IMF vehicle that provides concessional financing (currently at zero interest) to low-income countries, which face high inflation, persistent food insecurity, rising debt risks and high borrowing costs. The IMF has responded by expanding interest-free loans through the PRGT to help the poorest and most vulnerable member states navigate this difficult environment. There are 69 countries that are eligible to receive PRGT funding.