The Kuwait Fund for Arab Economic Development (KFAED) was established as the State of Kuwait’s agency for the provision and administration of financial and technical assistance to the developing countries. This fund is to assist Arab and other developing countries in developing their economies, particularly by providing them with loans required for the implementation of their development programs.
Kuwait Fund For Arab Economic Development is the first institution in the Middle East that took an active role in the international development efforts.
The Kuwait Fund extends Loans on concessionary term to finance development projects in the developing countries. The Fund also provides technical assistance to finance the costs of the feasibility studies of projects, as well as the training of nationals of the borrowing countries. In addition, the Fund subscribes in the capital of international and regional development institutions. Today, the Kuwait Fund forms a solid bridge of friendship and solidarity between the state of Kuwait and the developing nations.
The object of the Fund is to assist Arab and other developing countries in developing their economies.
Types of Activities
Making loans and providing guarantees,Making Grants by way of technical assistance and providing other types of technical assistance,Contributing to capital stocks of international and regional development finance institutions and other development institutions and representing the State of Kuwait in such institutions.
Scope of Operations
The Fund's operations are focused primarily on the sectors of agriculture and irrigation, transport and communications, energy, industry, water and sewage.
The Fund may extend its assistance to different types of entities which include:
Central and provincial governments, public utilities and other public corporations.Development institutions, whether international, regional or national and, in particular, development finance institutions.Corporate entities that undertake projects which are jointly owned by a number of developing countries as well as mixed or private enterprises that enjoy corporate personality, and are of a developmental nature and not merely oriented towards making of profit. Such enterprises must be either under the control of one or more developing country or have the nationality of any such country.
(Where the Borrower is an entity other than the state in the beneficiary country, the Fund usually requires that the state in such country enters into an agreement with the Fund whereby it guarantees the performance of the borrower's obligations under the respective loan agreement.)
Forms of Assistance
Direct loans or the provision of guarantees.Joint or parallel financing with other international, regional or national development finance institutions.Making of grants-in-aid to finance technical, economic and financial studies whether in relation to projects financed by the Fund or otherwise. Such studies may be of such types as pre-investment surveys, studies for the identification ofinvestment opportunities and projects, feasibility studies, project preparation, sectoral studies and the like.Advisory services in relation to technical, financial, economic and legal aspects of projects or programmes or development policies, or in relation to institution building in the field of development.Subscription to the capital, or contribution to the resources of development finance institutions.Subscription to the capital of eligible developmental enterprises.
(The Fund does not provide financial assistance for budgetary or balance of payment support.)