The Arab Fund for Economic and Social Development (AFEST) is an Arab regional financial institution focused on funding economic and social development by financing public and private investment projects and providing grants and expertise. Its headquarter is located in the State of Kuwait. The prime objective of AFEST is to make a model of cooperation and Arab economic integration, and a reflection of outstanding joint Arab action.
Objective of Arab Fund for Economic and Social Development (AFEST)
The prime objective of the Arab Fund is to provide finance to Arab countries in the economic and social developmental project by extending loans on concessionary terms. It serves as a catalyst for encouraging the investment, directly or indirectly, of public and private capital in a manner conducive to the development of the Arab economy and provides expertise and technical support in the various spheres of economic development.
In response to the need to enhance the developmental role of the private sector in member countries, the Board of Governors of the Fund amended the establishment Agreement, authorizing the Fund finance private sector development projects in the Arab countries. The Fund’s assistance to the private sector takes various forms, including direct loans, equity investment, guarantees, and lines of credits, other financing forms, as well as institutional support and advisory services.
Organisational Structure of Arab Fund for Economic and Social Development (AFEST)
The Arab Fund’s administration consists of the Board of Governors, the Director General and Chairman of the Board of Directors, the Board of Directors, Loan Committees and the staff of the Fund.
Board of Governors: All the powers of the Fund are vested in the Board of Governors, which may delegate to the Board of Directors all its powers, except certain specified powers that have been reserved exclusively to the Board of Governors. It is composed of a Governor and an Alternate Governor appointed by each member state. It holds an annual meeting and such other meetings as it may determine or as may be called by the Board of Directors.
Director General and Chairman of the Board of Directors: They are the one who presides over meetings of the Board of Directors, and, as the chief executive officer of the Fund, conducts all business of the Fund under the supervision of the Board of Directors.
Board of Directors: They are responsible for the general conduct of the business of the Fund and exercises the powers delegated to it by the Board of Governors. It is composed of eight Directors and their alternators. Directors are elected by the Board of Governors for a term of two years, which may be renewed.
Loan Committees and staff of the Fund: These are formed to submit the necessary reports on loan proposals relating to public sector projects and on loans to the private sector that are to be guaranteed by the government of a member state. Each loan committee is composed of an expert selected by the Governor representing the member state in whose territory the proposed project is located, and one or more technical staff members appointed by the Director General/Chairman of the Board of Directors.