The Kuwait Fund for Arab Economic Development (KFAED) was established on December 31, 1961 as an institution for coordinating Kuwaiti developmental aid. The purpose of the Fund is to assist Arab and other developing countries by providing them with loans and technical assistance for economic and infrastructural development projects.

The KFAED, which celebrated 40 years of its existence in 2001, is widely respected as one of the oldest organisations dealing in financial development and investment aid for achieving Arab and international economic cooperation. The Fund provides technical assistance grants to finance pre-investment feasibility studies aimed at exploring the opportunities for the build-up of productive capacities and providing technical and economic advisory services.

The sectors which the KFAED has focused its attention on are transport and communications, agriculture, industry, power generation and water and sewerage. The Fund’s aid has contributed to development in - besides the Arab world - Africa, Asia and the Pacific, Central Europe and Latin America and the Caribbean.