Arab Aid - Arab Fund for Economic and Social Development

Establishment:
The Arab Fund for Economic and Social Development is an autonomous development finance Pan-Arab regional organization. Its membership consists of 21 Arab States. The General Secretariat of the League of Arab States declared the Agreement effective as of 18 December 1971. The Fund commenced operations in early 1974.

Objectives:
The Arab Fund's principal objective is to contribute to the financing of economic and social development projects in Arab States through financing economic and social development projects by making loans on concessionary terms to governments and public enterprises and corporations, financing private sector projects in member states, establishing and administering special funds whose purpose is compatible with that of the Arab Fund and whose resources are provided by the Fund or other sources, encouraging the investment, directly or indirectly, of public and private capital in a manner conductive to the development of the Arab economy, and providing expertise and technical assistance in the various spheres of economic development.

Operations:

The Fund's total loan commitments consisted of 403 loans during 1974- 2000 thus amounted to $ 11.7 billion of which 28.8% to energy & electricity, 21.9% to agriculture & rural development, 18.5% to transport, telecom. & ports, 10.7% to industry & mining, 10.4% to water & sewerage, 9.7% to other sectors. These loans were allocated to financing 333 projects in 17 Arab States. The Fund extended 650 technical assistance grants totaling $ 275.0 million.