Kuwait Fund enters its 59th year .. A march marked by overcoming challenges 

• Al-Bader: Kuwait Fund contributed USD 22 million to finance more than 990 projects in developing nations over the past 59 years.
• Over KD 376 million-worth of KFAED revenues have been transferred to PAHW since 2003.
• Kuwait Fund was present locally and globally during COVID-19 crisis. 

Kuwait Fund for Arab Economic Development (KFAED) enters the 59th year of its development march with the advent of December 31st, marked throughout which by numerous contributions.

Since its foundation as the first Arab development institution in early 1960s, Kuwait Fund has continued to support development endeavors in Arab states and other developing nations by extending financial assistances, in addition to strengthen brotherhood and friendship bonds between Kuwait and world countries.

Over the past 59 years, Kuwait Fund, the state-owned development financial institution, has become a key partner in global development efforts through supervising and managing Kuwait's aid abroad, and financing recipient countries' top-priority projects.

The Fund has also had a notable presence in backing governments' humanitarian endeavors during several major humanitarian crises such as the Syrian refugees, and an effective role in the reconstruction efforts in Lebanon, Gaza, and Iraq.

For his part, KFAED Director-General Mr. Abdulwahab Al-Bader stated that Kuwait Fund's work strategy has progressed dramatically since its inception in December 31, 1961.

KFAED was able to grow and expand the pace of its operations, activities, and missions over the past years to become one of the prominent finance institutions on regional and international levels, added Al-Bader.

"The Fund's strategy focused on financing projects that contribute to attaining Sustainable Development Goals (SDGs), backing international development from economic, social, and environmental dimensions, and solving issues of poverty, food insecurity, gender inequality, and climate changes," he said.

On the other hand, the KFAED chief said development actions have faced unprecedented challenges during the ending year 2020, among which, notably, the global outbreak of the novel coronavirus pandemic (COVID-19), adding the virus' spread has paralyzed global economy and caused huge losses to various economic sectors around the world.

The coronavirus spread also led to isolating a number of countries around the world, forcing them into quarantine and imposing curfews within their territories, he said.

"Kuwait has stressed the importance of international cooperation in facing this pandemic, which is a cross-border health threat to every walk of life," he affirmed.

Al-Bader also stressed the need for consolidating all efforts to face global diseases and health crises, and limiting their severe impact on societies by providing further humanitarian aid.

He also pointed out that KFAED took part in initiatives and meetings, held throughout the past months via video, aimed at empowering recipient countries and institutions to concentrate their resources on countering the coronavirus fallout, and boosting their development endeavors as well.

Al-Bader also mentioned, in the same vein, the Fund's participation in the Debt Service Suspension Initiative, endorsed by World Bank Group and G20, to help countries concentrate their resources on fighting the pandemic.

KFAED rescheduled some USD 165.7 million-worth of debt-service (installments and interests) payable, including delays, between May 1st and December 31st for the initiative-eligible nations that submitted official request in that regard, he added.

Kuwait Fund is currently moving on with backing development projects in various countries around the world through its programs, he affirmed, pointing out that despite the recent surge in the number of loan requests due to the current crisis endured by the globe; the Fund, however, is committed to examining them and making swift response to their submitters.

Furthermore, the Fund is one of the first institutions at the local level to contribute to the Kuwaiti government's anti-COVID-19 efforts through extending KD 30 million-worth grant, of which KD 15 million was allocated to the Cabinet-formed Fund, while the other KD 15 million was placed at the Health ministry's disposal, said the KFAED chief.

Kuwait Fund has become a self-financed institution since 1986, and does not rely on the State to finance it anymore, adding it generates its own income from revenues of its operations and loan interests, mentioned Al-Bader.

The Fund also donates a portion of its profits to support the resources of some state institutions, said the KFAED Director-General.

"In 2002, the Fund inked a deal to purchase KD 500 million-worth of Kuwait Credit Bank's bonds, with an annual interest of two percent over a 20-year duration," Al-Bader said.

Moreover, KFAED has been deducting about 25 percent of its net revenues and transferring it to the Public Authority for Housing Welfare (PAHW), since fiscal year 2003/2004, to support its resources, he noted, adding the total funds transferred to PAHW have recently reached KD 376 million.

Al-Bader also mentioned KFAED's contribution to financing a number of other local activities and initiatives, including launching a program to train newly-graduate Kuwaiti engineers and architects in an 18-month program, called "newly-graduate Kuwaiti engineers and architects training program".

The program aims to helping newly-graduate engineers develop their skills, gain experience, and acquire practical knowledge necessary to empower them to compete in local and global markets, he added.

"The Fund trains around 60 Kuwaiti engineers annually inside and outside the country with a KD two million-worth budget, striving to improve their abilities and supply the local market with competent engineers," he said.

In addition, Kuwait Fund contributed in an initiative called "Be Among the Excellent", which aims to encourage high school students to excel in their studies and raise their awareness on the importance of joint cooperation by rewarding them with trips to the Fund-recipient countries.

In conclusion, Al-Bader expressed his hope that Kuwait Fund continues its development march, which began more than five decades ago, in backing development issues in developing countries.

It's worth mentioning that Kuwait Fund has financed more than 990 projects that benefited 107 countries over the past 59 years. The value of loans extended to these nations amounts to some KD 6.5 billion (equaling USD 22 billion).