Arab Fund for Economic & Social Development
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Arab Fund for Economic & Social Development Annual Report 2014 Arab Fund for Economic & Social Development P.O. Box: 21923 - Safat 13080, Kuwait Telephone: +965 24 95 90 00 Facsimile: +965 24 95 93 90 / 91 / 92 Electronic Mail: [email protected] Internet Web Site: www.arabfund.org Address: Arab Organizations Headquarters Building Airport Road, Shuwaikh State of Kuwait Annual Report 2014 1 2 Annual Report 2014 Arab Fund For Economic & Social Development Member States, Governors and Alternate Governors Member States(1) Governors(2) Alternate Governors(2) The Hashemite Kingdom of H.E. Dr. Ibrahim Saif H.E. Dr. Saleh A. Al-Kharabsheh Jordan The Republic of Tunisia H.E. Mr. Hakim Ben Hammouda - The Algerian Democratic and H.E. Mr. Mohamed Djellab - People’s Republic The Republic of Sudan H.E. Mr. Bader El-Din Mahmoud Abbas - The Republic of Iraq - - H.E. Dr. Ibrahim Bin Abd-El-Aziz The Kingdom of Saudi Arabia - Al- Assaf The Syrian Arab Republic - - State of Libya H.E. Dr. Al-Kilani Abdul Karim Al-Kilani - The Arab Republic of Egypt H.E. Dr. Naglaa Anwar El Ehwany H.E. Dr. Ashraf El-Araby H.E. Dr. Mohamed Ahmed Ali The Republic of Yemen H.E. Dr. Mohamed Al-Maitami Al-Hawri The State of Kuwait H.E. Mr. Anas Khalid Al Saleh H.E. Mr. Abdulwahab Al-Bader The Republic of Lebanon H.E. Mr. Nabil Adnan Al-Jisr H.E. Mr. Alain Bifani The Kingdom of Morocco H.E. Mr. Mohamed Boussaid H.E. Mr. Khalid Safir United Arab Emirates H.E. Mr. Obaid Humaid Al-Tayer - H.E. Sheikh Ahmed Bin Mohammed The Kingdom of Bahrain H.E. Mr. Yousif Abdulla Humood Al-Khalifa The State of Qatar H.E. Mr. Ali Shareef Al Emadi - The Somali Democratic - - Republic* The Islamic Republic of H.E. Dr. Sidi Ould Bebbaha Ould Tah H.E. Mr. Ahmedo Ould Ely Mauritania H.E. Mr. Darwish Bin Ismaeel Sultanate of Oman - Bin Ali Al-Bulushi Palestine H.E. Dr. Nabil Hani Al-Qaddumi H.E. Dr. Ismail El-Zabri The Republic of Djibouti H.E. Mr. Ilyas Moussa Dawaleh - The Union of the Comoros H.E. Mr. Mohamed Ali Soilihi - (1) States are listed in the order in which their names appear in the list of signatories to the Agreement Establishing the Fund, and according to the date of adhesion to the Agreement. (2) Names of Governors and Alternate Governors are given as at 31/12/2014. * Membership suspended pursuant to the Board of Governors’ Resolution No. 3 of 1993, which has been extended annually by subsequent resolutions of the Board of Governors until 2014. Annual Report 2014 3 4 Annual Report 2014 Board of Directors Director General / Chairman of the Board of Directors Mr. Abdlatif Y. Al-Hamad Members of the Board Mr. Abdulwahab Al-Bader Mr. Ibrahim Bin Mohamed Al Mofleh Mr. Benaouda Merad Mr. Taher Sarkez Dr. Samir El Sayiad Mr. Mohamed Abdulbaki Mr. Ali Bin Mohammad Bin Jaffar Mr. Fouzi Lekjaa Annual Report 2014 5 6 Annual Report 2014 Basic Financial Data on the Arab Fund as at 31/12/2014 (KD Million) Capital* 2554.9 Total Resources 3051.8 Loans Number of Loan Agreements Signed During the Year 15 Total Amount of Loan Agreements Signed During the Year 412.5 Total Number of Loans 626 Cumulative Amount of Loan Agreements Signed 8398.7 Cumulative Disbursements on Effective Loans 5614.4 Cumulative Loan Repayments 2857.4 Outstanding Debt Owed to the Arab Fund 2757.0 Grants Total Number of Grants 1062 Cumulative Grant Commitments 203.9 Cumulative Grant Disbursements 155.0 * During its Annual Meeting held on April 2, 2013, the Board of Governors resolved to increase the authorized capital of the Arab Fund to KD 4 billion and to raise the subscribed capital to KD 3 billion. This capital increase is to be effected through the capitalization of part of the additional reserve in the amount of KD 500 million, and by means of additional subscriptions by member states in the aggregate amount of KD 500 million, to be paid in installments over 5 years. The amount mentioned above represents the paid-in capital. Annual Report 2014 7 8 Annual Report 2014 Overview of Arab Fund Activities Introduction During 2014, the Arab Fund’s lending program focused on continued support to Arab countries’ efforts in implementing high-priority economic and social projects. Priority was given to infrastructure projects aimed at providing basic services, increasing production capacity, and improving the investment environment. The Arab Fund also continued to allocate national and inter-Arab grants to member countries, aimed at providing institutional support and training, implementing emergency programs, organizing seminars and conferences, conducting general studies and research, as well as feasibility studies and project preparation. Loans During the year, the Arab Fund extended 15 loans, in 8 Arab countries, for a total amount of KD 412.5 million. These loans contributed to the implementation of 13 public sector projects, including 12 new and 1 previously financed project, as well as 2 private sector projects. The total cost of these projects was estimated at about KD 1.2 billion, with the loans provided by the Arab Fund covering about 34.2% of that amount. The share of loans provided to the energy and electricity sector represented about 31.5% of the total loan commitments during the year, and that of the social services sectors about 19.6%. The agriculture and rural development sector accounted for about 19.4%, the transport sector for about 9.7%, the water and sewerage sector for about 7.3%, the industry and mining sector for about 1.8%, and the other sectors for about 10.7%, of the total amount of loans. Cumulative Loans Since the commencement of its activities in 1974 and until the end of 2014, the cumulative number of loans provided by the Arab Fund to the public and private sectors has reached 626 for a total amount of about KD 8.4 billion. These loans contributed to the financing of 530 projects in 17 Arab countries, and covered about 25.3% of the total cost of these projects. The infrastructure sectors received the majority of loans extended during that period, with a share of about 69.0% of the total amount of loans, followed by the productive sectors with about 20.3%, then the social services sectors with about 7.7%, and the other sectors with about 3.0%. The cumulative number of loans extended to the private sector over that period has reached 14, for a total amount of about KD 56.0 million. Cumulative disbursements of loans extended to both the public and private sectors over the period 1974 - 2014 amounted to about KD 5.6 billion, representing about 77.0% of the net amount of effective loans. The Arab Fund also contributed to the capital of 7 private companies, for a total amount of about KD 31.7 million, in addition to its contribution to the capital of the fund established by the International Finance Corporation (IFC). Annual Report 2014 9 Grants The total amount of grants provided by the Arab Fund during 2014 reached about KD 13.1 million, and was used to execute 20 national grants and 11 inter-Arab grants, and to increase 2 national grants provided in 2013. The total amount of the national grants was about KD 10.8 million, of which about 66.0% was allocated for institutional support and training, and about 29.3% for the implementation of emergency programs. The total amount of the inter-Arab grants was about KD 2.3 million, of which about 84.8% was allocated for institutional support and training, and about 15.2% for seminars and conferences. Cumulative Grants The cumulative number of grants extended by the Arab Fund, since the commencement of its operations and until the end of 2014, has reached 1062, for a total amount of about KD 203.9 million. They included 560 national grants amounting to about KD 143.1 million and 502 inter-Arab grants amounting to about KD 60.8 million. About 81.9% of the net amount of these grants was disbursed. Support to Palestine The Arab Fund continued its annual contribution to the Urgent Program in Support of the Palestinian People, in compliance with the decisions of the Arab Fund’s Board of Governors since 2001. During 2014, the Arab Fund allocated about KD 3.4 million to the twelfth phase of the program. Thus, the total contribution of the Arab Fund to this program over the period 2001 - 2014 reached about KD 127.3 million. Other Activities The Arab Fund continued to act as the Coordination Secretariat of the Coordination Group, which includes the Arab national and regional development institutions, and prepare their periodic meetings. The thirteenth meeting of the Heads of these institutions took place during the year at the Arab Fund headquarters. The seventy third and seventy fourth Coordination Group meetings also took place during the year, with the participation of several international institutions. By the end of the year, a total of 18 Arab countries had contributed to the Special Account established to finance small and medium private sector projects, in addition to the Arab Fund. Seven loans were approved during the year by the Special Account’s management committee, for a total amount of US Dollars 260.0 million. These loans were provided to governments and intermediary financial institutions in six Arab countries. 10 Annual Report 2014 The Arab Fund allocated a grant to conduct a study aimed at achieving food security for Arab countries through the Sudan project.