In 2015, net ODA reported by the Kuwait Fund for Arab Economic Development (KFAED) amounted to USD 304 million, representing an increase of 22% in real terms over 2014. Kuwait’s total involvement in development co-operation exceeds this amount but the volume of the activities of other institutions is not known.
Kuwait’s Law No. 35 of 1961 created the legal basis for the KFAED to act as an implementing agency in all developing countries on behalf of the Kuwaiti government. The KFAED acts under the overall supervision of the Prime Minister, who in practice delegates this mandate to the Minister of Finance. Other ministries, public authorities and non-governmental organisations (NGOs) also contribute to promoting development internationally, notably the Ministry of Foreign Affairs which can also provide humanitarian assistance.
The Kuwait Fund primarily provides concessional loans and loans to co-finance projects with other international, regional or national development partners. In addition, the fund provides guarantees. It also administers Kuwaiti government grants (outside its budget) and provides some grants for technical, economic and financial studies and assistance.
In 2015, the Kuwait Fund provided its bilateral development co-operation mostly to Morocco, Jordan, Sudan, Egypt and Pakistan. The main sectors for the KFAED’s bilateral development co-operation were economic infrastructure (energy), multisector aid for basic social services, and education and health.
The Kuwait Fund is a member of the Arab Coordination Group and participates in the Arab-DAC Dialogue on Development.
Kuwait became Participant of the Development Assistance Committee in 2018.