The Abu Dhabi Fund for Development (ADFD) has issued a 183.6 million dirham loan ($49.9 million, €44.3 million) concessionary loan to the government of Montenegro to support agricultural development in the country.
The loan is ADFD’s third investment in the agriculture sector. The fund previously invested in Union Maroc Emirats Arabes Unis de Pêche (UMEP) and Al Ain Farms for Livestock Production, fisheries and livestock companies respectively.
Established in 1971, the state-funded ADFD provides development capital to emerging markets in the form of concessionary loans and grants on behalf of the Abu Dhabi government. The fund has about $35 billion dirhams of assets under management across 325 development projects in 59 countries, according to its website.
This new investment made to Montenegro will support food security and boost agricultural and livestock exports, according to a press release. “The agreement seeks to enhance the competitiveness of Montenegro’s products to international levels,” reads the release.
“The project funded by the ADFD comprises two phases. Phase one includes the provision of loans to farmers and companies operating in agricultural and livestock production as well as assisting and guiding them towards effective management and implementation of their projects,” Petar Ivanovic, the Minister of Agriculture and Rural Development of Montenegro, said in a statement.
Phase two involves the procurement of services relevant to machinery, factories, warehouses, and agricultural land, as well as the refurbishment and construction of new factories and agricultural assets.
“As a catalyst for inclusive development and food security, the United Arab Emirates, through the Abu Dhabi Fund for Development, pursues an active policy in supporting agricultural investment across the developing world,” Mohammed Saif Al Suwaidi, director general of ADFD, said in a statement.
Al Suwaidi noted that elevated production and investment in agriculture will serve as an effective tool to achieving sustainable economic and social development across developing countries, in supporting such vital projects. “We hope to create hundreds of job opportunities in the beneficiary countries, while contributing to the diversification of their economies and helping them achieve self-sufficiency in food and agricultural production,” he added.