Purpose of the Fund

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The principal purpose of the Arab Fund is to contribute to the financing of economic and social development projects in the Arab countries. To attain this purpose, the Arab Fund provides financing for economic development projects by extending loans, on concessionary terms, to governments and public corporations and enterprises of member states, giving preference to projects which are vital to the Arab World and joint Arab projects. It serves as a catalyst for encouraging the investment, directly or indirectly, of public and private capital in a manner conducive to the development of the Arab economy and provides expertise and technical support in the various spheres of economic development.
In response to the need to enhance the developmental role of the private sector in member countries, the Board of Governors of the Fund amended the establishment Agreement, authorizing the Fund finance private sector development projects in the Arab countries. The Fund’s assistance to the private sector takes various forms, including direct loans, equity investment, guarantees, lines of credits, other financing forms, as well as institutional support and advisory services.

Financing private sector projects in member countries by providing all forms of loans and guarantees to corporations and enterprises possessing juridical personality. and participating in their equity capital; as well as providing other forms of financing and furnishing the requisite financial, technical and advisory services in accordance withsuch regulations and subject to such conditions as may be prescribed by the Board of Directors of the Fund provided for in Article (22) of the Agreement.

Financing economic and social development projects by providing Loans on concessionary terms to governments and public enterprises and corporations, giving preference to projects deemed vital to the Arab world and to inter-Arab projects

Establishing and administering special funds whose purposes are compatible with that of the Arab Fund, and whose resources are provided by the Fund or other sources. The constituent instruments of such special funds shall define their purposes and functions, and set out the regulations governing their operations and administration.

Providing expertise and technical assistance in the various fields of economic development.

Forming, or participating in the equity capital of corporations possessing juridical personality and whose objects concern the implementation and financing of private sector projects in member countries, including the provision and financing of the necessary technical, consultancy and financial services.

Encouraging the investment, directly or indirectly, of public and private capital in a manner conducive to the development of the Arab economy