Top Arab multilateral development aid donors: A primer

The Arab world appears in the midst of massive changes as disenfranchised citizens in several Middle Eastern and North African countries push for more democracy and economic opportunity. Whatever the outcome of these revolts, aid from Arab multilateral, bilateral and non-governmental institutions will be crucial to rebuilding and fostering a more progressive Arab union. Despite the region’s own development challenges, Arab aid institutions have been operating for more than four decades now, funding development programs in and outside the Arab world. Africa, Asia and other parts of the world have benefited from the development aid. Here are some of the more prominent multilateral organizations in the region, as well as their origins and objectives. Arab Authority for Agricultural Investment and Development - Type: Multilateral - Headquarters: Khartoum, Sudan - Regional office: Dubai, United Arab Emirates - President: Ali Bin Saeed Al Sharhan - Paid-up capital: $364 million (as of 2009) - Members: Algeria, Bahrain, Comoros, Egypt, Iraq, Jordan, Kuwait, Lebanon, Mauritania, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, United Arab Emirates, Yemen AAAID, created in 1977, is an investment organization of 20 Arab member states. Its main objective is to contribute in achieving Arab food security in member countries. Its activities include investment in all forms of agricultural production, including plant production, raising livestock, agricultural processing, and related activities. Arab Bank for Economic Development in Africa - Type: Multilateral - Headquarters: Khartoum, Sudan - Regional office: Cairo, Egypt - Chairman: Yousef Ibrahem Al Bassam - Director general: Abdelaziz Khelef - Number of employees: 128 - Paid-up capital: $2.8 billion (as of 2009) - Members: Algeria, Bahrain, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestinian territories, Qatar, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, United Arab Emirates, Yemen The Arab Bank for Economic Development in Africa, or BADEA, was established in 1974 by the League of Arab States to promote the economic development of African countries that are members of the Organization of African Unity but do not belong to the Arab League. It is the only Arab aid agency that does not provide assistance to Arab countries. BADEA seeks to promote economic, financial and technical cooperation between African and Arab countries by contributing Arab capital to African development and providing both project loans on concessional terms and technical assistance, mainly for project feasibility studies and institutional support. Its operations cover 43 countries in sub-Saharan Africa. It has established the Special Arab Aid Fund for Africa, which was created by Arab oil-exporting countries to fund development projects in non-Arab African countries. Arab Fund for Economic and Social Development - Type: Multilateral - Headquarters: Kuwait City, Kuwait - Director general: Abdulatif Yousef Al Hamad - Number of employees: 192 - Authorized capital: $7.15 billion (as of 2009) - Members: Algeria, Bahrain, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestinian territories, Qatar, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, United Arab Emirates, Yemen The Arab Fund, established in 1971 by agreement of the Economic and Social Council of the Arab League, is a regional multilateral development bank for the Arab world that aims to further the bloc’s economic integration. It gives priority to financing inter-Arab projects that are likely to promote cooperation among member countries. It finances investment-oriented economic and social development projects through the provision of loans on concessionary terms to governments, public enterprises and corporations. It also provides nonrefundable grants as contribution to various fields of study, institutional support and training, as well as support for emergency situations in member countries. The Arab Fund houses the Coordination Secretariat Group of the Arab National and Regional Developmental Institutions, which synchronizes Arab external assistance, optimizes the use of available resources and competencies, and harmonizes funding policies and operating procedures. Arab Fund for Technical Assistance to African Countries - Type: Multilateral - Headquarters: Cairo, Egypt - Members: Algeria, Bahrain, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, United Arab Emirates, Yemen AFTAAC was created by the League of Arab States in 1974 and is managed by the league’s secretariat. It does not provide direct financial assistance for projects but finances and coordinates technical assistance studies and helps develop human resources in Africa. AFTAAC is funded by voluntary contributions. Arab Gulf Program for United Nations Development Organizations - Type: Multilateral - Headquarters: Riyadh, Saudi Arabia - President: Prince Talal Bin Abdul Aziz - Executive director: Nasser Al-Kahtani - Number of employees: 37 - Capital: $343 million (as of 2010) - Members: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates The Arab Gulf Program for United Nations Development Organizations, or AGFUND, was established in 1980 by Gulf Cooperation Council countries to coordinate the member states’ assistance to U.N. agencies and Arab non-governmental organizations’ development projects. It has taken part in financing 1,268 projects in 133 countries. All financial assistance provided by AGFUND is in the form of grants. The projects it finances are in the fields of health, nutrition, water and sanitation, education, poverty reduction, environmental protection, and special assistance to the disabled. Arab Monetary Fund - Type: Multilateral - Headquarters: Dubai, United Arab Emirates - Director general: Jassim Al Mannai - Authorized capital: $2.7 billion (as of 2009) - Members: Algeria, Bahrain, Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, United Arab Emirates, Yemen The Arab Monetary Fund, created in 1976 by the Economic Council of the League of Arab States, helps member countries cope with deficits to balance of payments and fosters close monetary cooperation among Arab countries. It helps promote Arab economic integration and growth by supporting pan-Arab development projects. Arab Organization for Agricultural Development - Type: Multilateral - Headquarters: Khartoum, Sudan - Director general: Tariq Moosa Al Zadjali - Members: Algeria, Bahrain, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestinian territories, Qatar, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, United Arab Emirates, Yemen AOAD was established by the League of Arab States in 1970. On the national level, the AOAD assists member countries in developing and enhancing their agricultural sectors. Regionally, it facilitates coordination among member states in the agricultural sector, with the aim of achieving a fully integrated Arab economy and food self-sufficiency. Arab Red Crescent & Red Cross Organization - Type: Multilateral - Secretary general: Abdullah bin Mohammed Al Hazaa - Headquarters: Riyadh, Saudi Arabia The Arab Red Crescent & Red Cross Organization, established in 1975, facilitates communication, studies and coordination between the Arab Red Crescent & Red Cross national societies. A large share of Arab humanitarian aid is channeled through the Arab Red Crescent & Red Cross Organization. Islamic Development Bank - Type: Multilateral - Headquarters: Jeddah, Kingdom of Saudi Arabia - Regional offices: Morocco, Malaysia, Kazakhstan, Senegal - President and chairman: Ahmad Mohamed Ali Al Madani - Number of employees: 1,086 - Authorized capital: $44.4 billion (as of 2010) - Paid-up capital: $5.4 billion (as of 2010) - Members: Afghanistan, Albania, Algeria, Azerbaijan, Bahrain, Bangladesh, Benin, Brunei, Burkina Faso, Cameroon, Chad, Comoros, Code d’Ivoire, Djibouti, Egypt, Gabon, Gambia, Guinea, Guinea Bissau, Indonesia, Iran, Iraq, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Lebanon, Libya, Malaysia, Maldives, Mali, Mauritania, Morocco, Mozambique, Niger, Nigeria, Oman, Pakistan, Palestinian territories, Qatar, Saudi Arabia, Senegal, Sierra Leone, Somalia, Sudan, Suriname, Syria, Tajikistan, Togo, Turkey, Turkmenistan, Tunisia, Uganda, United Arab Emirates, Uzbekistan, Yemen IsDB, a specialized institution of the Organization of the Islamic Conference, was established in 1975. The bank provides various forms of assistance to governments and public institutions of member countries, such as interest-free soft loans, leasing, installment sale, and profit and capital contribution, in addition to grants and technical assistance in different sectors. It has played a leading role in introducing financing tools that are consistent with Islamic religious (Shariah) law. In nonmember countries, the IsDB supports Islamic communities by providing scholarships and training facilities. The bank is also the coordinator of the Program of the Gulf Cooperation Council for the Reconstruction of Gaza. In 2009, it partnered with the Asian Development Bank to launch the new Islamic Infrastructure Fund to address the growing demand for infrastructure investment in Asia through the provision of Shariah-compliant equity investments to member countries of both development banks. OPEC Fund for International Development - Type: Multilateral - Headquarters: Vienna, Austria - Director general: Suleiman J. Al Herbish - Number of employees: 140 - Paid-in contributions: $3.43 billion (as of 2009) - Members: Algeria, Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, Venezuela OFID, established by members of the Organization of Petroleum Exporting Countries in 1976, provides financial assistance in the form of public-sector loans for development projects and programs, balance-of-payments support, and debt relief under the Heavily Indebted Poor Countries Initiative. It also has funding mechanisms for trade financing; support to private enterprises; grants for technical assistance, food aid, research and humanitarian relief work; and contributes to the resources of other development organizations whose activities benefit developing countries. It extends development aid exclusively to non-OPEC developing countries. OFID’s resources consist of voluntary contributions by the member states and income accumulated from the fund’s investments and loans. OFID is not exclusively an Arab-financed institution but Arab countries provide the largest share of funding. By 2010, 129 developing countries had benefited from OFID’s assistance. Read more about the Arab world’s top bilateral institutions and non-governmental organizations focusing on international development.