Introduction
Loans and Projects | Commitments by Sector | Technical Assistance | Financial Statements

 

During 2006, the Fund’s lending program continued its support of promoting Arab countries’ efforts in implementing high-priority economic and social projects. Top priority was given to projects in the transport sector to develop road networks and airports, followed by energy sector projects to increase the potential of Arab countries in generating electricity and improving power transmission networks. Attention was also given to water and wastewater projects, educational projects, social development funds and administrative rehabilitation projects. These projects aim to assist member countries in providing basic infrastructure services, developing current projects and promoting social development in these countries. The Fund also continued to allocate grants that contribute to its member states’ goals in providing institutional support and capacity building, undertaking feasibility studies and preparing projects, in addition to developing educational and health services, supporting training and information systems, carrying out population censuses, and implementing emergency programs in some countries.

 

Top of Page

Introduction | Loans and Projects | Commitments by Sector |
Technical Assistance | Financial Statements

During 2006, the Fund extended 18 loans, amounting to KD 345.0 million, of which KD 7.0 million was used to finance a private sector iron plant project in Lahaj province in Yemen. Loans to the transport sector projects represented approximately 52.8% of total loan commitments during the year, followed by energy the sector projects that constituted approximately 20.0%. Furthermore, water and wastewater projects comprised about 11.6% of total loan commitments, social service projects about 10.1%, agricultural, irrigation and rural development at an approximate 0.9%, and other services represented around 2.6%.

Cumulative Loans and Disbursements for the Period 1974-2006
(KD Million)
(Note: KD 1 = $ 3.3)

Click here for more on AFESD loans.

Top of Page

Introduction | Loans and Projects | Commitments by Sector |
Technical Assistance | Financial Statements

Cumulative loan commitments, since the commencement of the Fund’s operations in 1974 until the end of 2006, reached KD 5449.7 million. They have contributed to approximately 27.9% of the total cost of the projects they helped finance. Cumulative disbursements until the end of the year amounted to KD 3536.8 million, representing about 71.7% of the net amount of effective loans. Infrastructure sector projects represented the majority of loans extended during this period, comprising 65.5% of total loans, followed by productive sectors (23.9%), social services sectors (9.3%), and other sectors (1.3%).

 

Loan Commitments by Sector, 2006
and Total Loans Committed, 1974-2006
(KD Million)
(Note: KD 1 = $ 3.3)  

Loan Commitments by Sector

Click here for more on AFESD loans.

Top of Page

Introduction | Loans and Projects | Commitments by Sector |
Technical Assistance | Financial Statements

The Fund also awarded 32 grants during 2006, with a value reaching KD13.9 million, of which KD 8.0 million (approximately 57.7%) were allocated to the implementation of three emergency programs comprising of relief and construction in Darfur region, urgent humanitarian relief in Lebanon as a result of the latest Israeli aggression, and support of the emergency program to tackle avian influenza in Arab countries. Moreover, about 24.8% of total grants were allocated to institutional support and training, in order to enhance the productivity of institutions in member states and improve the capabilities of employees in the areas of project planning, preparation and implementation. In addition, approximately 12.3% of total grants were allocated to feasibility studies and project research, about 3.6% to the preparation of general studies and research, and about 1.6% to conducting seminars and conferences. Since the commencement of the Fund’s operations and until the end of 2006, the cumulative number of grants extended have reached 820, with a total value of about KD 123.7 million, of which about 80% have been disbursed.

The Fund has continued its cooperation and coordination with other Arab and international institutions in areas of mutual concern, and has continued its coordination duties in collaboration with other Arab national and regional development institutions. The Fund has cooperated and coordinated with the Kuwait Fund for Arab Economic Development, the OPEC Fund for International Development and the Islamic Development Bank in financing and monitoring a number of projects aiming at supporting non-governmental organizations (NGOs) and providing aid to the Palestinian people. Furthermore, the Fund has maintained its monitoring of the Arab Trade Financing Program, and its participation in the preparation and publication of the Joint Arab Economic Report in cooperation with the General Secretariat of the League of Arab States, the Arab Monetary Fund and the Organization of Arab Petroleum Exporting Countries (OAPEC). The Fund also cooperated with the United Nations Development Program (UNDP) and the Arab Gulf Programme for United Nations Development Organizations (AGFUND) in the issuance of the 4th Arab Human Development Report. The annual joint seminar between the Fund and the Arab Monetary Fund was held at the Fund’s headquarters in 2006, in collaboration with the World Bank and the International Monetary Fund (IMF), under the heading “Investment, International Trade and Employment: Towards an Effective Role for the Private Sector in the Arab Countries.”

 

.

Technical Assistance Commitments by Activity

 

Click here for more on AFESD Technical Assistance.

Top of Page

Introduction | Loans and Projects | Commitments by Sector |
Technical Assistance | Financial Statements

 

Financial Statements for the Fiscal Year Ended 31 December 2006

According to the Fund’s financial statements, the Fund’s income for the fiscal year ending 31/12/2006 reached KD 126.45 million, while its administrative expenses were about KD 6.56 million, and its loan allowance was increased by KD 0.27 million. Thus, the net profit was approximately KD 119.62 million compared to KD 102.62 million for the year 2005. Moreover, the statements show that the member states’ equity, as at 31/12/2006, totaled about KD 2451.1 million, compared to KD 2354.5 million at the end of 2005.

I. Financial Position

Assets: Assets totaling KD 2,512 million (100.0%) at year end, consisted of : KD 517 million (20.6%) in investments, KD 1,888 million (75.1%) in loans, KD 50 million (2.0%) in the Arab Trade Financing Program, and KD 57 million (2.3%) representing the shares of the participants in the Arab Organizations Headquarters Building, other assets, cash and cash equivalents, compared with total assets of KD 2,410 million at the end of 2005, consisting of KD 398 million in investments, KD 1,913 million in loans, KD 49 million in the Arab Trade Financing Program, and KD 50 million representing the shares of the participants in the Arab Organizations Headquarters Building, other assets, cash and cash equivalents.

Liabilities: Total liabilities at year end amounted to KD 61 million , compared with KD 56 million in total liabilities at the end of 2005.

Member Countries Equity: As at the end of 2006, shareholders equity reached KD 2,451 million (100.0%), consisting of KD 663 million (27.0%) in paid-up capital, KD 1,777 million (72.5%) in capital reserves, KD 9 million grants reserve (0.4%) and KD 2 million change in fair value reserve (0.1%), compared with total equity of KD 2,354 million as at the end of 2005, consisting  of  KD 663 million in paid-up capital, KD 1,680 million in capital reserves, KD 10 million grants  reserve and KD 1 million change in fair value reserve.

II. Income and Expenditures

Income: Total income for the year amounted to KD 126.45 million (100.0%), consisting of KD 74.67 million (59.1%) interest income from loans, KD 49.98 million (39.5%) income from investments, and KD 1.80 million (1.4%) from the Arab Trade Financing Program, compared with a total income of KD 108.37 million in 2005, consisting of KD 74.43 million interest income from loans, KD 32.89 million income from investments and KD 1.05 million from the Arab Trade Financing Program.

Expenditures: Total administrative expenses for the year 2006 amounted to KD 6.56 million compared with KD 5.87 million for administrative expenses during 2005.

Net Profits: Net profits this year reached KD 119.62 million (100.0%), excluding provision for loans amounting to KD 0.27 million, from which KD 0.21 million (0.2%) has been allocated to Arab scholars, KD 5.98 million (5.0%) to the grants reserve KD 11.96 million (10.0%) to the general reserve, and the remaining KD 101.47 million (84.8%) to the additional reserve, compared with KD 102.62 million net profits in 2005, from which KD 0.17 million was allocated to Arab scholars, KD 5.13 million to the grants reserve, KD 10.26 million to the general reserve, and the remaining KD 87.06 million to the additional reserve.

III.  Cash Flows:

Net Cash flow provided by operating activities this year amounted to KD 5.10 million, which resulted from KD 281.47 million in loan disbursements, KD 7.79 million in disbursements of grants, as well as loan repayments of KD 306.35 million, increase in trading investments of KD 87.68 million compared with KD 7.46 million in net cash flow provided by operating activities during 2005 resulting from KD 282.16 million in disbursements of loans, KD 6.24 million in disbursements of grants, KD 155.13 million in loan repayments, KD 44.25 million decrease in trading investments.

Net cash from investment activities during the year amounted to KD 0.94 million. This compares with KD 1.92 million net cash  used from investment activities during 2005.

The net increase in cash and cash equivalents during the year was KD 6.04 million compared with a net increase in cash and cash equivalents of KD 5.54 million during 2005.

 

Top of Page

Introduction | Loans and Projects | Commitments by Sector |
Technical Assistance | Financial Statements

Home | About AFESD | Member States | Board of Directors | Operations | Resources | Loans | Technical Assistantce | AFESD Contacts | Tour Headquarters | Special Interest

Copyright © 1998-2007 AFESD; All Rights Reserved.