•  Saudi Fund for Development (SFD)

Establishment

The Saudi Fund for Development (SFD) was established by Royal Decree No. M/48 dated 14/08/1394H (September 1, 1974). Operations began on 18/02/1395H (March 1, 1975). It is a governmental institution focused on providing development support through concessional loans to finance development projects in developing countries, contributing to their economic and social growth.

Objectives

• Contribute to financing development projects in developing countries via concessional loans.

• Provide technical assistance grants for studies and institutional support.

• Implement grant projects and development programs offered by the Saudi government to support the least developed and poorest countries.

• Operates based on international development standards, aligning its financing with the Sustainable Development Goals (SDGs), and enhances aid effectiveness through partnerships with regional and international organizations.

Governance

The Fund is a public institution with legal personality and financial independence. It serves as Saudi Arabia’s development arm for international development. It is governed by a Board of Directors composed of ten members, with an executive president responsible for executing the Board’s decisions.

Capital

Initially launched with SAR 10 billion in capital from the government, the capital has increased in three stages to SAR 31 billion.

Address

Saudi Arabia – Riyadh 11523
King Fahd Road, P.O. Box 50483
Phone: +966 11 6474507 / +966 11 2794000
Email: info@sfd.gov.sa

Board of Directors

• Chairman: H.E. Ahmed bin Aqeel Al Khateeb – Minister of Tourism

• CEO: Mr. Sultan bin Abdulrahman Al-Murshid

• Other members include officials from the Central Bank, Ministry of Industry, Ministry of Foreign Affairs, SMEs Authority, EXIM Bank, and others.

2. Abu Dhabi Fund for Development (ADFD)

Overview

The ADFD is a leading national financial institution that executes the UAE’s policy on development aid, supporting sustainable economic development both locally and globally. It provides concessional loans and manages government grants to fund strategic projects in partner countries. It also plays a major role in boosting the UAE’s economy and enhancing the global competitiveness of UAE exports.

Establishment

Established in 1971 under the guidance of the late Sheikh Zayed bin Sultan Al Nahyan. Sheikh Khalifa bin Zayed chaired the Board until 2004, succeeded by Sheikh Mansour bin Zayed. The Fund began receiving loan applications in 1973 and funded 10 development projects in countries like Tunisia, Egypt, Jordan, Bahrain, Syria, and Yemen in 1974, totaling AED 222 million.

Objectives

• Support developing countries.

• Enhance the UAE’s role in supporting the national economy.

Beneficiary Countries

The Fund operates in over 90 countries, including:

• 19 Arab countries

• 30 African countries

• 26 Asian countries

• 15 countries in Latin America and Europe

Financing Criteria

• Projects must fall under sectors such as education, health, energy, water, industry, agriculture, transport, or housing.

• Beneficiary countries must be listed by the OECD Development Assistance Committee.

• Projects must align with national development priorities and have a positive socio-economic impact.

Application Process

Applications are submitted by government entities. Projects are assessed for feasibility and socio-economic impact before approval.

Contact

Location: King Abdullah Bin Abdulaziz Al Saud Street, Al Bateen, Abu Dhabi
Working hours: Sunday–Thursday, 7:00 AM – 4:30 PM
Phone: +971 2 6677100

Board of Directors

• Chairman: H.H. Sheikh Mansour bin Zayed Al Nahyan

• Vice Chairman: H.H. Sheikh Abdullah bin Zayed Al Nahyan

• Other members include ministers and senior officials.

3. Kuwait Fund for Arab Economic Development (KFAED)

Overview

Established on December 31, 1961, the Kuwait Fund is the first institution of its kind set up by a developing country to provide and manage financial and technical assistance to developing nations.

Expansion

Initially focused on Arab countries, in July 1974, its operations expanded globally. Capital increased from KWD 200 million to KWD 1000 million, and further to KWD 2000 million in 1981. Its mandate also expanded to include capital contributions to development institutions.

Objectives

• Assist Arab and other developing countries in developing their economies.

• Provide concessional loans, grants, and technical assistance.

• Contribute to international and regional development institutions.

Scope of Operations

Primarily in agriculture, irrigation, transport, communications, energy, water, sanitation, education, and health.

Types of Assistance

• Direct loans and guarantees

• Joint financing with other institutions

• Grants for feasibility studies and institutional support

• Technical advice and capital contributions

Governance

Managed by a Board chaired by the Foreign Minister. Recent appointees include Sheikh Jarrar Al Sabah, Asil Al-Munifi, and others.

Contact

Address: Mubarak Al-Kabeer Street, Kuwait City
P.O. Box 2921, Safat 13030, Kuwait
Phone: +965 22999000
Fax: +965 22999090
Bahrain Office: +973 17530044

4. Arab Fund for Economic and Social Development (AFESD)

Overview

A regional financial institution headquartered in Kuwait, AFESD focuses on financing public and private development projects and providing technical expertise and grants.

Key Features

• All Arab countries are members.

• Operates under economic neutrality, unaffected by political factors.

• Aligns its operations with national development priorities and avoids imposing external policies.

Loan Terms

• Interest rates: 2.5% for low-income countries; 3.0% for others.

• Loan duration: 30 years, with a grace period of up to 4 years.

Recent Initiatives

In 2022, launched a green projects initiative with preferential rates: 2.0% for low-income countries, 2.5% for others.

Origins

The idea originated in the 1950s. It was officially established in 1968 and began operations in 1972.

Activities

• Provides concessional loans to governments and public institutions.

• Invests in joint Arab projects such as electrical grids and roads.

• Funds education, health, rural development, and social funds.

• Offers technical assistance and non-repayable grants (5% of annual profits).

• Manages a special account to support SMEs in Arab countries.

Private Sector Support

AFESD supports the private sector via loans, equity participation, credit lines, and institutional support.

Fellowship & Awards

• Offers scholarships for outstanding Arab PhD students.

• Administers the Abdullatif Yousif Al-Hamad Development Award for the best development project in the Arab world.

Contact

Postal Address: P.O. Box 21923, Safat 13080, Kuwait
Location: Permanent HQ Building for Arab Organizations, Airport Street, Shuwaikh, Kuwait
Phone: +965 24959000
Fax: +965 24815750/60/70
Email: HQ@arabfund.org
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