Arab Regional Projects


Introduction

The Arab Fund launched its activities during a period when Arab cooperation was growing at the level of economic development. One of the main objectives of the Fund was to support joint Arab projects that increase the coherence and integration among Arab countries. In that regard, and within its available financial resources and options, the Fund was able to finance projects including power grid interconnection, modernization of communication systems and road networks between Arab countries. Supporting functions include the preparation of sectoral studies, holding conferences and seminars that seek solutions to problems hindering economic and social development in the Arab countries. This also includes identifying cooperation opportunities and finding the factors supporting Arab development and integration, in the light of global and regional developments.

Up to the end of 2020, the Arab Fund has provided 66 loans, having a total amount of KD 394 Million, to participate in the financing of 32 inter-Arab integration projects. Most notably, 25 of these loans were directed towards participating in financing communication projects, 16 were directed towards participating in financing energy and electricity projects, and 6 were directed towards participating in financing transportation projects.

Figure (1) shows the integration projects' share of total loans provided by the Arab Fund, broken down by sector, while Figure (2) illustrates the percent sectoral distribution of loans provided by AFESD to finance joint projects. The figure shows that energy and electricity projects received around 70% of the total amount of loans provided for financing joint projects, followed by communications projects at around 13%, and transportation projects at around 10%.

Figure (1)
Integration projects share of the total loans of the various sectors
during the period (1974 - 2020)
(Million KD)(*)

Figure (1) shows the integration projects' share of total loans provided by the Fund to the various sectors. Figure (2) illustrates the sectoral share of loans used to finance joint projects. The figures show that the largest share of loans to joint projects was directed to the energy and electricity sector.

Figure (2)
Sectoral share of the loans used to finance joint projects
during the period (1974 2020)

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