Event highlights progress on Opec Fund’s plans and projects

Business Bureau, Gulf Today

The United Arab Emirates, represented by the Ministry of Finance, participated in the 46th session of the Ministerial Council of the Opec Fund for International Development (OFID), held in Vienna, Austria.

The UAE delegation was headed by Mohamed Bin Hadi Al Hussaini, Minister of State for Financial Affairs, and included Thuraiya Hamid Alhashmi, Director of the International Financial Relations and Organisations Department at the Ministry of Finance and Governor to the Opec Fund for International Development, and Hamad Issa Al Zaabi, Director of the Office of the Minister of State for Financial Affairs and Alternate Governor to the Fund.

The meeting discussed the Opec Fund’s Annual Report for 2024 and focused on evaluating the progress made in implementing the Fund’s plans and projects.

It also addressed the challenges posed by the rapidly evolving global development landscape, particularly in areas such as energy and food security, climate change, and the need to create sustainable job opportunities. Participants also discussed ways to strengthen South-South cooperation and build sustainable partnerships between the Opec Fund and regional and international development finance institutions to enhance the efficiency of responses to beneficiary countries’ needs.

Flexible Development Solutions: In his speech during the meeting, Mohamed Bin Hadi Al Hussaini praised the tangible achievements made over the past year, which marked a milestone in the Fund’s journey toward expanding its operations and enhancing its resilience and adaptability.

He stated: “This year marks the 49th anniversary of the Opec Fund’s founding, reflecting the strength of its founding vision and its pioneering role in promoting sustainable development across the Global South.”

“Over the past year, the Fund has demonstrated outstanding institutional performance, driven by a clear approach under the 2030 Strategic Framework, enabling it to effectively respond to rapidly evolving conditions and deliver flexible and actionable development solutions across various sectors.”

He added: “We recognise that the global development landscape is undergoing significant changes, with governments across our regions facing multiple challenges—from food security and energy provision to climate change adaptation and job creation. Amidst these challenges, the pressure on the development finance system is growing at an unprecedented pace. In this context, the Opec Fund can play a central role in supporting countries by advancing South-South cooperation and offering financial solutions that span a wide range of sectors and instruments, in addition to its strong global credibility.”

The Opec Fund for International Development is a multilateral development finance institution established in 1976. It works to strengthen cooperation between Opecmember countries and development partners from the Global South and the international development community.

Its mission is to support sustainable social and economic progress in low- and middle-income countries worldwide, contributing to stability and prosperity in beneficiary countries by offering technical and financial assistance through concessional financing, grants, and development-focused aid across sectors such as agriculture, education, energy, health, and transport.

Since its inception, the Fund has committed over $27 billion to support more than 4,000 development projects with a total estimated cost exceeding $200 billion across more than 125 countries.

Meanwhile the Arab Coordination Group (ACG) extended $19.6 billion collectively to fund nearly 650 operations in more than 90 countries in 2024.

This significant financing was geared towards developing critical infrastructure, addressing global challenges like climate change and food security, and supporting international trade.

The ACG Heads of Institutions gathered in Vienna for their 20th annual meeting hosted by the Opec Fund for International Development (Opec Fund).

Ahead of the Fourth International Conference on Financing for Development (FFD4) which is scheduled to take place from June 30 to July 3, 2025 in Spain, the group reaffirmed its commitment to scaling-up financial assistance for sustainable development.

The top three sectors supported by ACG financing last year were energy (29 per cent), agriculture (20 per cent) and the financial sector (16 per cent).

Over 45 per cent of the total financing promoted global trade, ensuring the movement of critical products and supporting small and medium-sized enterprises. In 2024, approximately 20 per cent of the ACG’s commitments were dedicated to Africa, aligned with the $50 billion pledge made by the group in November, 2023.