Directory of Economic, Commodity and Development Organizations - table of contents


Fonds Arabe de Développement Economique et Social



P.O. Box 21923                                       Telephone:   [965]484-4500
Safat 13080                                          Facsimile:   [965]481-5750/60/70
Kuwait                                               E-Mail:

          Director General and
          Chairman of Board of Directors:    ...     Abdulatif Y. AL-HAMAD

LANGUAGES: Arabic (official language); English, French (working languages)


The Agreement establishing the Arab Fund for Economic and Social Development (AFESD) was approved by the Economic Council of the League of Arab States on May 16, 1968, and signed on the same date. It entered into force on December 18, 1971. The first meeting of the Board of Governors was held February 6, 1972, and the first meeting of the Board of Directors on November 18, 1972. The Fund commenced operations in early 1974.

The AFESD is an Arab regional financial institution, having an independent juridical personality. Its objectives are to assist member countries in eliminating development constraints, increasing absorptive capacity and achieving higher rates of growth; and to foster economic integration and cooperation among member countries. Its function is to assist the economic and social development of Arab countries through; (1) financing economic and social development projects, with preference given to overall Arab development and to joint Arab projects; (2) financing private sector projects in member states 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; (3) forming or participating in the equity capital of corporations possessing juridical personality for the implementation and financing of private sector projects in member states, (4) establishing and administering special funds whose purpose is compatible with that of the Arab Fund, and whose resources are provided by the Fund or other sources; (5) encouraging the investment, directly or indirectly, of private and public capital in a manner conducive to the development of the Arab economy; and (6) providing expertise and technical assistance in the various spheres of economic development.

Authorized capital is 800 million Kuwaiti dinars (80,000 shares), of which KD 663.04 million was fully paid by December 1989. The Fund may borrow twice the amount of its capital; additional borrowing may be authorized by the Board of Governors. No borrowing has yet been made.

The AFESD also provides secretariat services for the Coordination Secretariat of Arab National and Regional Development Institutions, which meets periodically to discuss ongoing and planned development projects with the intention of coordinating aid and streamlining operational procedures among the member institutions. Members of the coordination group are the Abu Dhabi Fund for Development, the Arab Bank for Economic Development in Africa, the AFESD itself, the Islamic Development Bank, the Kuwait Fund for Arab Economic Development, the OPEC Fund for International Development, and the Saudi Fund for Development. The Coordination Secretariat publishes, twice a year, a Summary of Loans and Technical Assistance Extended to Developing Countries by Arab National and Regional Development Institutions.


21 members: Algeria, Bahrain, Djibouti, Egypt, Iraq (membership suspended), Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Somalia (membership suspended), Sudan, Syrian Arab Republic, Tunisia, United Arab Emirates, Republic of Yemen


The Board of Governors is the highest authority. The Board of Directors consists of eight Directors elected by the Board of Governors for a two-year period. The Board of Directors exercises the powers delegated to it by the Board of Governors.

The Chairman of the Board of Directors/Director General is elected by the Board of Governors for a five-year period and is responsible for the conduct of operations and appointment of staff.


Annual Report; Joint Arab Economic Report

UPDATED:  December 2003

Directory of Economic, Commodity and Development Organizations - table of contents