The United Arab Emirates (UAE), located in the Arabian Peninsula with a population of over 10 million, is classified as a high-income economy. Several factors encouraged the founding members of the New Development Bank (NDB) to admit the UAE as a new member.
Among the key considerations were the absence of a regional office of the Bank in the Middle East, the UAE’s lack of a shared border with any existing member (consistent with geographical balance policies), and the country’s substantial financial wealth.
The UAE holds a privileged financial position due to its vast hydrocarbon export revenues. In 2021, the Abu Dhabi sovereign wealth fund ranked as the fourth-largest sovereign wealth fund globally, with approximately USD 650 billion in assets under management. Mubadala Investment Company also managed approximately USD 232.2 billion in assets in 2021.
Given that the NDB had not yet achieved a strong international credit rating, the accession of a highly rated country such as the UAE offered considerable advantages. These included the potential upgrade of the Bank’s credit standing, increased capital capacity, compensation for lower-rated members such as Bangladesh and Egypt, and reduced concentration risk.
Additional factors included the compatibility of the UAE’s entrepreneurial and innovation-driven culture with the Bank’s objective of streamlining procedures and accelerating project implementation. The UAE’s operational model was also aligned with the NDB’s 2017–2021 General Strategy, emphasizing gradual and efficient institutional expansion.
The UAE’s commitment to renewable energy development was another important driver. This approach aligns closely with the Bank’s sustainable development and green infrastructure priorities. Notable initiatives include the signing of the Paris Agreement, implementation of the Net Zero 2050 Strategy, development of Masdar City as a sustainable urban model, and hosting COP28.
The UAE’s extensive financial network—both globally and regionally, including partnerships with the World Bank and the Islamic Development Bank—was also influential, as it may facilitate financial and infrastructure coordination among member states. UAE officials have additionally indicated that regional countries such as Jordan, Iraq, and Morocco may seek financing from the Bank even without formal membership.
The United Arab Emirates joined the New Development Bank in October 2021 as a non-borrowing member.
According to the Bank’s management decision, the UAE’s maximum subscribed capital was set at USD 556 million, consisting of USD 111 million in paid-in capital and USD 445 million in callable capital.
The UAEcurrently holds 1.06 percent of total voting power.
At the time of accession (July 2021), the UAE’s credit ratings were assessed as Aa2 by Moody’s and AA- with a stable outlook by Fitch Ratings.
As a non-borrowing member, the UAE is not expected to receive project financing from the Bank. Accordingly, no projects within the UAE have been financed by the NDB to date.
