This document contains the policy guidelines concerning financing Public Sector
projects. This policy aims to strike the best balance between the Funds’ aim, on
one hand, at providing the necessary concessionary financing for projects, and its
need, on the other hand, to maintain and strengthen its financial resources and
capabilities, all while abiding by the rules and regulations set-forth in the Agreement
establishing the Fund, and the rules and practices adopted by the Fund when evaluating
development projects, extending financing to them, and following up with their execution.
The document identifies the entities eligible to receive financing, financing mechanisms,
loan components, withdrawals, procurement, the mechanisms for joint/co-financing,
the loan ratifications process, along with other topics. The Board of Directors
of the Arab Fund adopted this document via its Resolution Number (19) for the year
2017. This document replaces the old document titled “Lending and Borrowing Policy”
which was adopted in accordance with the Board’s Resolution number (4) for the year
1974. The new document is geared specifically towards public sector financing.