The Arab Fund's activities are funded by its financial resources that comprise of paid-up capital, reserves allocated from retained earnings.

The Arab Fund commenced its activities in 1974 with an authorized capital of KD 102 million, of which KD 36 million was paid-up by the end of that year. With the increasing needs of beneficiary countries for the Fund's services and in response to the changed circumstances following the adjustment of oil prices in 1973, the Arab Fund increased its authorized capital to KD 400 million. This was subsequently doubled it in 1983 to KD 800 million. At the end of 2007 the subscribed and paid-up capital was KD 663 million.

The policy of Arab Fund has been to retain its net earnings since its establishment and to make no profit distributions. It has invested its surplus resources in low-risk investments. Through the end of 2007, the Arab Fund had accumulated financial reserves of KD 1.8 billion, which added to paid in capital of KD 663 million gave it total resources of KD 2.54 billion.

Accordingly, during 2008, by resolution of the Board of Governors Number 7 dated 2 April 2008 the capital was increased to KD 2 billion by capitalizing KD 1.337 of the additional reserve.

As of the end of 2020, shareholders' equity reached around KD 3,853 million, consisting of KD 2,901 million in capital and around KD 952 million in reserves.