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
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%.
Integration projects share of the total loans of the various sectors
during the period (1974 - 2020)
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.
Sectoral share of the loans used to finance joint projects
during the period (1974 – 2020)