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

KUWAIT FUND FOR ARAB ECONOMIC DEVELOPMENT

HEADQUARTERS

P.O. Box 2921                                        Telephone:   [965]246-8800
Al-Hilali Street                                     Facsimile:   [965]241-9090 to 92
Safat 13030                                                       [965]243-6289
Kuwait                                               Telex:       22025 ALSUNDUK
                                                                  22613 KFAED KT
                                                     Cable:       ALSUNDUK
                                                     E-Mail:      info@kuwait-fund.org
                                                     Internet:    www.kuwait-fund.org

          Chairman (by delegation):    ...    H.E. Dr. Yousef Hamad AL-IBRAHIM
                                              Minister of Finance, Planning and
                                                the Minister of State for
                                                Administrative Development Affairs

LANGUAGES: Arabic, English

ESTABLISHMENT AND FUNCTIONS

Established in December 1961, the Kuwait Fund for Arab Economic Development (Kuwait Fund) is the principal agency of the State of Kuwait for the provision and administration of financial and technical assistance to developing countries. The operations of the Fund were originally confined, in accordance with its initial mandate, to the Arab countries. However, pursuant to a law promulgated in July 1974 to reorganize the Fund, the scope of the Fund's activity was extended to the rest of the developing world. At that time, its capital was increased from KD 200 million to KD 1000 million. In March 1981, this capital was doubled, to KD 2000 million and the Charter of the Fund was amended to provide expressly for the power of the Fund to participate in the capital and resources of development finance institutions and the equity capital of corporate entities of a developmental nature.

The purpose of the Fund, as stated in its Law, is to assist Arab and other developing states in developing their economies and to provide them with loans required fro the implementation of their development programs. The Fund may achieve this objective by any means which its Board of Directors deems appropriate, within the framework of the Law and Charter of the Fund. Such means include the following: (a) making loans and guarantees; (b) extending grants by way of technical assistance and providing other forms of technical assistance; (c) contributing to the capital of a number of development institutions, mainly on behalf of the State of Kuwait. Such institutions include: (1) the Arab Fund for Economic and Social Development, (2) Arab Bank for Economic Development in Africa, (3) African Development Fund, (4) Inter-Arab Investment Guarantee Corporation, (5) African Development Bank, (6) International Development Association, (7) International Fund for Agricultural Development, and (8) IFAD Special Programme for Sub-Saharan African Countries.

In exercising its functions, the paramount concern of the Fund is to serve the interests of developing countries in achieving economic development and also to promote friendly relations and cooperation between the State of Kuwait and these countries.

The scope of operations of the Fund may extend to any developing country and no sectorial limitations restrict its activities. However, the assistance of the Fund has so far been mainly focused in the areas of: (1) transport and communications, (2) irrigation and agriculture, (3) energy, (4) water and sewage, and (5) industry. Assistance is generally provided for specific projects and may also be provided for institutional support.

Recipients eligible for assistance from the Fund encompass a wide range of entities including central governments, public utilities, development institutions and mixed enterprises. However, in cases where the Borrower is not the government of the beneficiary country, the Fund requires that such government guarantees the obligations of the Borrower under the loan agreement.

STRUCTURE

The Fund has administrative and financial independence, operating under the overall supervision of the Prime Minister of the State of Kuwait. It is administered by a Board of Directors with the Prime Minister as Chairman and such other members, not being less than four nor more than eight, appointed by the Prime Minister from among qualified Kuwaitis. Board members are appointed for a term of three years and are eligible for re-appointment. The Board of Directors meets at least three times a year at the invitation of the Chairman or the Director-General of the Fund.

In exercise of the power granted to him by the Law establishing the Fund, the Prime Minister has delegated his powers under the law to the Minister of Finance.

Responsibility for the management of administrative financial and technical affairs of the Fund is entrusted to its Director-General who is appointed by an Amiri Decree on the recommendation of the Board of Directors of the Fund. The Director-General attends the meetings of the Board of Directors and participates in its deliberation but without the right to vote. The Director-Gneral is assisted by one or more deputies also appointed by Amiri Decrees on the recommendation of the Board of Directors. The responsibilities and functions of such deputies are determined by the Director-General.

UPDATED:  February 20, 2001

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