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.
Growth in Arab Fund Resources During the Period 1972 - 2020