On 01/01/1900 , Arab Fund for Economic & Social Development has started to cooperate with Egypt.
AFESD is an independent pan-Arab financial organization with a capital of approximately KWD 663. Its members are those of the Arab League of States. Egypt’s share in AFESD amounts to KWD 40.5m, i.e. around 6% of its capital. AFESD’s objective is to finance economic and social development projects in Arab states by offering soft loans and grants in the form of technical support.
Loans and technical support provided by AFESD are directed to governments and public and private agencies and institutions with priority given to joint Arab projects.
AFESD’s capital was increased several times pursuant to resolution No. 7 of 2008 adopted by the Board of Governors. The capital was increased to KWD 2b by transferring part of the reserve, based on which the member state shares were re-distributed proportionately to the ownership percentage of each. Egypt’s share thus became KWD 122,164,575.
Pursuant to resolution No. 2 of 2013 adopted by the Board of Governors, AFESD’s issued capital was raised to KWD 4000m and the subscribed capital to KWD 3000m. Subscription takes place to the capital increase in proportion to the ownership percentage of each country, which led to the increase of Egypt’s share to KWD 30,541,140. The value of the subscribed shares is settled over 5 equal annual instalments on the first of April of each year as of 2014, each of the value of KWD 6,108,228, which shall be settled by the Central Bank of Egypt (CBE). After subscription, Egypt’s share became 18,324,686 shares of the value of KWD 183,246,860.
AFESD has lately established a window for financing private sector projects in Arab states, where Egypt received USD 500m.
Total amounts obtained by Egypt from AFESD since its inception and start of operation in 1974 up to April 2015 amounts to approximately KWD 1.347b, equivalent to approximately USD 5b. Technical support provided to Egypt by AFESD during the same period is worth KWD 17m, equivalent to approximately USD 61.2.
Sectors mainly benefiting from AFESD’s loans in order are those of electricity, followed by industry, infrastructure, services, transport and finally petroleum.