The establishment of the Kuwait Fund by the State of Kuwait, a developing country, in 1961 and immediately after gaining independence, was a remarkable event, reflecting the wisdom and farsightedness of the country's leadership
Kuwait Fund, which was originally established to promote economic development in the Arab world, has expanded its mandate in 1974 to cover all developing countries.
This initiative of development cooperation launched five decades ago envisioned not only the importance of transferring real financial resources to developing countries, but it also emphasized the significance of advisory services for the planning and implementation of development projects and programmes. To this end, the Fund is staffed with professional experts in the fields of economics, finance, engineering and law to provide r advice to recipients, and to consult with them on all aspects of the project cycle.
By the end of February 2015 the Fund has committed concessional loans with a value of over U.S. Dollars 18.2 billion, benefiting 104 countries, including 16 Arab, 40 African, 19 East, South Asian and Pacific, 17 Central Asian and European, and 12 Latin American and Caribbean. In addition, the Fund extended technical assistance and grants with a value of over U.S. Dollars 450 million to finance activities and tasks that promoted development operations in general. The Fund also made contributions on behalf of the State of Kuwait to a number of regional and international development institutions to support their development activities.
Over the years, financing of projects accorded high priority by recipient countries has been the principal activity of Kuwait Fund. Approval of funding such projects has been conditional on the outcome of well-prepared feasibility studies, and the results of appraisal carried out by the Fund's professional staff, to ensure that the projects are technically and environmentally sound, and are financially reliable.
The Fund's development operations covered projects in various sectors, including agriculture, communications, energy, industry, transport, water and sanitation, in addition to supporting small and medium private sector projects through lines of credit extended to national development banks and various social development funds. This sectoral coverage was expanded in 2001 to include the health and education sectors as well.
In pursuing its objective of promoting economic and social development, the Fund has been guided by flexible policies, simplified procedures, and transparent practices with the aim of sparing recipients the burden of unduly rigid operational guidelines and directives. The Fund's main concern in applying its policies and lending conditions is to ensure the timely and orderly implementation of projects and the realization of their expected benefits, through close cooperation with partners in development and with due respect to their priorities and full support to their ownership of their development operations.
