The U.S. and Japan have refused to join, however, warning that the AIIB could undermine existing multilateral institutions and governance standards.
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China’s leadership means its “influence is prominent and far-reaching, and it carries more profound significance than successfully hosting an Olympic Games”, said the Global Times, which is affiliated with the official Communist Party mouthpiece People’s Daily. With this, the UAE joins 57 other nations that have already become founding members in the Beijing-based institution. China will hold a stake of over 30 percent and will command more than 25 percent of the votes.”The signing of the document reveals the commitment of the parties involved in the founding of the AIIB, as well as their solidarity, cooperation, openness, inclusiveness and quest for common development”, said Xi.The AIIB was first proposed by the Chinese president in 2013.
AIIB will initially have an authorised capital stock of $100m and will be financed by individual country contributions proportionate to their economic size.
China holds the largest share with $29.8 billion (30.34 per cent stake) that will give it 26.06 per cent voting rights and veto powers over major decisions, reported AsiaOne.
Earlier in May this year, the prospective members of the bank after deliberations had finalized the articles of agreement for the AIIB as a result of a three-day policy meeting.
Dr. Sultan Ahmed Al Jaber, UAE Minister of State, led discussions on behalf of the UAE while the Chinese government was instrumental in arranging the UAE’s membership of the AIIB. “In addition to enhancing the country’s role within the global economy, the UAE’s affiliation to the institution as a founding member will support the country’s growing interests in Asia”.
The new bank is expected to be operational by the end of 2015, according to an AIIB statement. The goal of the multilateral development bank is to provide finance to infrastructure projects in the Asia region. In particular, AIIB will cater to the development needs of its least economically developed members, and encourage the private sector to invest in projects and initiatives with widespread development impact.
Ashok K Kantha, India’s Ambassador in China, led the Indian delegation at the ceremony and signed the Articles of Agreement.
I is believed however that the Philippines will eventually jump on board the AIIB given that the country’s infrastructure development is clearly falling behind its economic growth.
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The bank “will provide new opportunities for our businesses and also promote sustainable growth in Asia”, said Singapore’s senior minister for finance and transport Josephine Teo, who represented the city-state.
