Saudi Fund for Development

SFD was established in 1974, it has financed infrastructure programs (dams, transport) and vital social projects (healthcare facilities; Water, Sanitation and Health (WASH) programs and education) alongside other sectors such as energy and agriculture.[1]

SFD’s capital now amounts to Saudi Arabian Riyals (SAR) 31 billion[1] (US $8.3 billion), from an initial investment of SAR 10 billion (US $2.6 billion).[1] SFD has contributed official development assistance (ODA) to 1000 projects in 85 countries through loan and grant mechanisms.[4] In 2017, SFD was responsible for 43.9% of ODA dispersed by Saudi government agencies.[5] SFD delivers funding bi-laterally; however, it is also engaged in the multilateral development system and works with organizations such as such as the United Nations,[6] the World Bank , Arab Fund for Economic and Social Development, Arab Bank for Economic Development in Africa, Islamic Development Bank, OPEC Fund for International Development, French Development Agency and the United Kingdom’s Department for International Development (DFID).[7] SFD’s funding is multiregional and provides development assistance to all developing countries,[8] although it prioritizes the least developed and low-income countries.[1] According to the World Bank, SFD is one of the most global of Arab international development funds, financing projects in Europe and South America, alongside other regions.[9]

Since its founding in 1974, SFD’s methodology has been to assess the critical needs of partner nations - whether those be in energy, water, transportation[14] or other principal development areas - and work to finance projects that address a particular need, in line with the UN Sustainable Development Goals.[15] In response to the COVID-19 pandemic, SFD, as a member of the Arab Coordination Group, will contribute funding to help developing countries economically recover from the recession caused by the pandemic. Collectively, the Arab Coordination Group has committed SAR 375 billion (US $10 billion) to this effort.[16]

SFD has supported transportation and infrastructure projects designed to reduce social and economic isolation in landlocked African countries.[17] The lack of infrastructure and connectivity between such countries has led to a reduction in exports, as transport costs are estimated to comprise about 77% of the value of exports.[17] This has had a significant impact on landlocked countries’ abilities to trade with their neighbours. To combat this, SFD has contributed to the financing of a number of internal and external road projects in Burkina Faso, Ethiopia, Niger, Mali and Chad, linking them to seaports in Djibouti, Ghana and Mauritania. Due to their geographical location, the countries have experienced significant social and economic challenges; the development of the roads and transportation links is expected to enhance trade and connectivity in the region, with the potential to generate jobs and increase business opportunities for small and medium sized enterprises (SMEs).[17]

SFD established this program to mitigate the effects of drought in rural regions in several African countries. Under the program, over 6,000 water facilities have been equipped, and 2.5 million people have secured improved access to water.[4]

SFD continues to partner with organizations such as the United Nations,[6] the World Bank, the United Kingdom’s Department for International Development (DFID),[7] Agence française de développement (AFD) and Japan International Cooperation Agency (JICA), United Nations International Children's Fund (UNICEF) and the United Nations High Commissioner for Refugees (UNHCR).

SFD also collaborates with regional development partners such as the Islamic Development Bank (IsDB), Arab Bank for Economic Development in Africa BADEA), the Abu Dhabi Fund for Development (ADFD), the Kuwait Fund for Arab Economic Development (FKDEA), the OPEC Fund for International Development (OFID), the ECOWAS Investment and Development Bank (EBID) and the West African Development Bank (BOAD) .

SFD is one of Africa’s largest contributors to sustainable development aid, and since 1975 has contributed SAR 38 billion (US $10 billion) in financial assistance to more than 400 development projects in 46 African countries. SFD has worked on several cross-border projects, such as the Tadjoura Port,[32] in Djibouti, and the development of transport links in West and Central Africa. Other African countries include Burkina Faso, Burundi, Comoros Islands, Chad, Djibouti, Egypt, Ethiopia, Gambia, Kenya, Liberia, Mauritius, Mauritania, Morocco, Sudan and Tunisia.[17] In 2019, SFD signed two loans worth SAR 367 million (US $97.8 million) to finance the construction of roads and schools in Afghanistan. SFD also works with countries in Asia such as Bahrain, Jordan, Maldives, Nepal, Kyrgyzstan, Republic of Uzbekistan and Sri Lanka.[33][34] To date SFD has contributed SAR 1.5 billion (US $411 million) in financial assistance to more than 21 countries in Europe, South America and the Caribbean. SFD is financing and supporting infrastructure projects in European countries such as Albania, Bosnia and Herzegovina, Republic of Kosovo alongside projects in South American and Caribbean countries including Brazil, Cuba and Jamaica.