The Kuwait Fund for Arab and Economic Development (KFAED) was established on December 31, 1961, as a mechanism through which the State of Kuwait could extend loans and aid to Arab and other developing countries.
The KFAED is an autonomous public body having an independent legal identity. It is administered by a Board of Directors whose members are appointed by HH the Crown Prince and the Prime Minister, and the Chairman of the Board. The Prime Minister has delegated this authority to the Minister for Finance. The management of the Fund is the responsibility of the Director General, who is appointed by the Chairman of the Board. One or more Deputies to the Director General assist him in the management of the Fund.
In order to discharge its functions, the Fund was given broad freedom of movement, and the right to follow any of the courses outlined in the Law and its Statutes.
Its functions are:
- Offering loans and guarantees;
- Offering grants for technical aid and providing other forms of technical assistance;
- Participating in the capital of development institutions; and
- Participating in the capital of international, regional and other development finance institutions.
The Fund has placed emphasis on financing the agriculture, irrigation, transport, communications, energy, industry, and the water and sewage sectors.
It offers assistance to:
Central and regional governments, public utilities and other public institutions.
International, regional and local development institutions, particularly development financial institutions.
Establishments which undertake joint projects between a number of developing countries, and various private institutions concerned with development.
In pursuing its objectives and goals, KFAED’s exclusive concern is to serve the interest of the countries with which it cooperates and to promote friendly relations between them and Kuwait. Over a period of 40 years, the Fund has played an effective role in strengthening the ties of co-operation and friendship between Kuwait and other countries.
According to the recent statistics, the Fund’s paid-up capital since its foundation amounts to KD 2,000 million. Total loan disbursement extend amounted to KD 3,077 million. The Fund has granted 595 loans since its inception and extended technical assistance on 196 occasions to different countries and organisations, which have benefited 96 countries in Africa, Asia, Europe and Latin America.