The Arab Fund for Economic and Social Development (AFESD) is an autonomous regional Pan-Arab development finance organization, ("the Fund"). Its membership consists of all states who are members of the League of Arab States.

ESTABLISHMENT OF THE FUND AND COMMENCEMENT OF OPERATIONS
The Agreement Establishing the Fund was adopted by the Economic and Social Council of the League of Arab States on 16 May 1968,("the Agreement").  The General Secretariat of the League of Arab States declared the Agreement effective as of 18 December 1971. The first meeting of the Board of Governors was convened on 6 February 1972, and the Fund commenced operations in early 1974.

afesd functions
The AFESD is an Arab regional financial institution, having an independent juridical personality. Its function is to assist the economic and social development of Arab countries through (1) financing development projects, with preference given to overall Arab development and to joint Arab projects; (2) encouraging the investment of private and public funds in Arab projects; and (3) providing technical assistance services for Arab economic and social development.

The AFESD also provides secretariat services for the Coordination Secretariat of Arab National and Regional Development Institutions, which meets periodically to discuss ongoing and planned development projects with the intention of streamlining operational procedures among the member institutions. Members of the coordination group are the Abu Dhabi Fund for Development, the Arab Bank for Economic Development in Africa, the AFESD itself, the Islamic Development Bank, the Kuwait Fund for Arab Economic Development, the OPEC Fund for International Development, and the Saudi Fund for Development. The Coordination Secretariat publishes, twice per year, a Summary of Loans and Technical Assistance Extended to Developing Countries by Arab National and Regional Development Institutions.

AFESD PURPOSE
Pursuant to the Agreement Establishing the Fund (as amended by Resolution 2/1997 of the Board of Governors), the purpose of the Fund is to contribute to the financing of economic and social development in the Arab states and countries through:

1- Financing economic development projects by making loans on concessionary terms to governments and to public enterprises and corporations, giving preference to projects which are vital to the Arab world, as well as joint Arab projects.

2- Financing private sector projects in member states by providing all forms of loans and guarantees to corporations and enterprises possessing juridical personality, and participating in their equity capital; as well as providing other forms of financing and furnishing the requisite financial, technical and advisory services in accordance with such regulations and subject to such conditions as may be prescribed by the Board of Directors of the Fund provided for in Article (22) of the Agreement Establishing the Fund.

3- Forming or participating in the equity capital of corporations possessing juridical personality for the implementation and financing of private sector projects in member states, including the provision and financing of technical, advisory and financial services.

4- Establishing and administering special funds whose purpose is compatible with that of the Arab Fund, and whose resources are provided by the Fund or other sources.   The constituent instruments of such special funds shall define their purpose and functions, and set out the regulations governing their operations and administration.

5- Encouraging the investment directly or indirectly of public and private capital in a manner conducive to the development of the Arab economy.

6- Providing expertise and technical assistance in the various spheres of economic development.

The AFESD seeks to assist member countries in eliminating development constraints, increasing absorptive capacity and achieving higher rates of growth, and to foster economic integration and cooperation among member countries.