Saudi Arabia’s SFD signs an agreement with Asia’s AIIB to work together on solving global development challenges
The Saudi Fund for Development (SFD) has made an agreement with the Asian Infrastructure Investment Bank (AIIB) to work together on solving global development problems, the organizations said on Monday.
Deal Terms:
The partnership will bring together resources through joint projects, sharing knowledge, building skills, and working together on communication efforts. It also aims to bring long-term economic benefits to countries in Asia and other regions.
AIIB President Jin Liqun said this cooperation is an important step after Saudi Arabia’s contribution to AIIB’s Special Fund Window (SFW) for less developed countries. It will also help both organizations explore opportunities to co-finance projects in poorer regions.
The SFW aims to make loans more affordable for low-income countries. It does this by lowering interest rates on eligible projects supported by government guarantees, helping these countries afford important infrastructure projects.
Jin Liqun added that working with the Saudi Fund for Development (SFD) will create new opportunities and strengthen both institutions, promoting growth that is strong, inclusive, and focused where it is needed most.
Other Deals
- In September, SFD agreed to lend $55 million to help expand the Bahamas’ North Eleuthera International Airport.
- Last year, SFD started working with nine new countries, all of them small island nations, including the Bahamas.
- In April, SFD gave a $40 million loan to Saint Kitts and Nevis to boost their energy sector. The loan will help expand the Needsmust Power Plant by building a new, advanced power unit that can use two types of fuel and generate 18 megawatts of electricity.
- In March, SFD’s CEO Sultan bin Abdulrahman Al-Marshad signed two loan deals with Pakistan’s Secretary of Economic Affairs, Kazim Niaz. The deals, worth $66 million and $35 million, will fund the construction of the Shounter Hydropower Project and the development of the Jagran-IV Hydropower Project.
Total Projects
Since it started in 1975, SFD has funded 800 development projects worldwide. These projects cover many areas and have helped with sustainable development, economic growth, and building skills in different communities.
Big Number
SFD has spent $20 billion on its development efforts. Since 2023, it has given loans to 11 new countries, all of which are Small Island Developing States.
Published: 29th October 2024
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