On December 31st, the Kuwait Fund for Development marks the anniversary of its establishment, opening a new chapter of success and ambition as one of the most prominent pioneers of development on both regional and global levels. Founded in 1961, the Fund became the first and oldest development institution to operate in Arab countries and other developing nations.
Today, after more than six decades of continuous work, the Kuwait Fund for Development remains steadfast in its mission and has never ceased its efforts to support development causes in developing countries. As it celebrates its 64th anniversary, the Fund has drawn a national portrait under the theme “Partners in Development,” reflected through its projects spread across the globe, all of whom aimed at building brighter and more sustainable future.
An External Development Arm
The establishment of the Kuwait Fund for Development embodied wise and visionary decision by the leadership of the State of Kuwait at the time. Kuwait was the only developing country that chose to share the challenges of development with other developing nations, cooperating with them through the provision of concessional loans, grants, financial assistance, and technical support tailored to their development priorities.
Since its inception, the Kuwait Fund for Development has served as Kuwait’s external development arm, sparing no effort in supporting development causes and extending assistance to developing countries worldwide.
The Vision and the Early Beginnings
In the early 1960s, the late Amir Sheikh Jaber Al-Ahmad Al-Sabah (may he rest in peace), then Head of the Financial Department, proposed the idea of establishing a development entity that would serve Kuwait’s foreign policy and assist Arab and other developing countries in achieving development across various sectors. The idea received strong support from the late Amir Sheikh Abdullah Al-Salem Al-Sabah (may God bless his soul), as it aligned with Kuwait’s vision at the time to build a modern state.
Consequently, an Amiri Decree was issued on December 31, 1961, establishing the Kuwait Fund for Development with an initial capital of KD 50 million.
Global Reach and Development Impact
The Fund’s activities have extended to all corners of the world, contributing to the financing of projects in 106 countries, including 16 Arab countries, 41 African countries, 19 in East and South Asia and the Pacific, 17 in Central Asia and Europe, and 12 in Latin America and the Caribbean.
This support was delivered through 1,037 concessional loans provided to the governments of these countries, with a total value of approximately KD 7 billion. In addition, the Fund has provided grants and technical assistance to support a wide range of development services, helping beneficiary countries implement their development programs. A total of 420 grants and technical assistance operations were extended, amounting to approximately KD 401 million.
Loan Agreements
During the past year, the Kuwait Fund for Development signed several loan agreements supporting development across different regions of the world. Among these were two loan agreements with the Government of the Kingdom of Bahrain. The first loan, valued at KD 31.250 million (approximately USD 100 million), contributed to financing the Electricity Transmission Networks Development Project. The second loan, valued at KD 10 million (approximately USD 32.4 million), supported the Sheikh Jaber Al-Ahmad Al-Sabah Highway Development Project (Phase II).
On the sidelines of the World Bank Group meetings held in Washington, D.C., the Fund has also signed a KD 4 million-worth loan agreement with Saint Lucia to help finance the Sir Julian R. Hunte Highway Project, as well as another KD 4 million-worth loan agreement (approximately USD 12.8 million) with the Republic of Belize to support the George Price Highway Project.
Supporting and Assisting Refugees
The Kuwait Fund for Development’s contributions to humanitarian action stand out at both regional and international levels. Since its establishment, the Fund has represented a unique model in supporting and assisting refugees in countries affected by disasters, conflicts, and wars, in line with the State of Kuwait’s moderate and balanced policy.
These efforts have helped strengthen Kuwait’s relations with Arab and international partners. The Fund has played a significant role in the reconstruction of Lebanon and Iraq following periods of crisis, and its assistance to the Palestinian people has never ceased.
International Participation
Over the past year, the Kuwait Fund for Development recorded notable participations in major international forums. These included taking part in the 2025 Annual Meetings of the World Bank Group and the International Monetary Fund in Washington, D.C., with a delegation headed by the Fund’s Acting Director General Walid Shamlan Al-Bahar. The Fund also took part in the Tokyo International Conference on African Development (TICAD), held in Tokyo, Japan.
Additional international engagements included participation in the Third United Nations Conference on Landlocked Developing Countries, held in Awaza, Turkmenistan, and the Fourth International Conference on Financing for Development, organized by the United Nations in Seville, Spain.
About the Kuwait Fund for Development
The Kuwait Fund For Development is the first institution in the Middle East that took an active role in the international development efforts.
The Kuwait Fund extends Loans on concessionary term to finance development projects in the developing countries. The Fund also provides technical assistance to finance the costs of the feasibility studies of projects, as well as the training of nationals of the borrowing countries. In addition, the Fund subscribes in the capital of international and regional development institutions. Today, the Kuwait Fund forms a solid bridge of friendship and solidarity between the state of Kuwait and the developing nations.
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