Purpose of the Fund

The principal purpose of the Arab Fund is to contribute to the financing of economic and social development projects in the Arab countries. To attain this purpose, the Arab Fund provides financing for economic development projects by extending loans, on concessionary terms, to governments and public corporations and enterprises of member states, giving preference to projects which are vital to the Arab World and joint Arab projects. It serves as a catalyst for encouraging the investment, directly or indirectly, of public and private capital in a manner conducive to the development of the Arab economy and provides expertise and technical support in the various spheres of economic development.

In response to the need to enhance the developmental role of the private sector in member countries, the Board of Governors of the Fund amended the establishment Agreement, authorizing the Fund finance private sector development projects in the Arab countries. The Fundís assistance to the private sector takes various forms, including direct loans, equity investment, guarantees, lines of credits, other financing forms, as well as institutional support and advisory services.

Objectives of the Arab Fund

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