SEVILLE: The Asian Infrastructure Investment Bank (AIIB) and the Arab Fund for Economic and Social Development (AFESD) signed a strategic memorandum of understanding (MoU) on Tuesday aimed at enhancing cooperation and accelerating the implementation of sustainable infrastructure projects in jointly prioritized regions. The agreement was signed by AFESD Director General and Chairman Bader Al-Saad and AIIB President Jin Liqun on the sidelines of the Fourth International Conference on Financing for Development, currently underway in Seville, southern Spain.
In a statement, Al-Saad said the strategic partnership aligns with the Fund’s mission of supporting sustainable development in Arab countries in line with the United Nations Sustainable Development Goals (SDGs). “This collaboration will bolster our resources and strengthen our role in financing infrastructure, contributing to a more prosperous and sustainable future for the region,” he noted. He emphasized that the partnership underscores both institutions’ commitment to deepening regional cooperation and adopting innovative, demand-driven approaches to infrastructure financing.
AIIB President Jin Liqun described the partnership with the Arab Fund as “a significant milestone in our shared commitment to sustainable development.” He added: “By leveraging AIIB’s global infrastructure expertise and the Arab Fund’s deep regional knowledge, we can jointly implement impactful projects that tackle pressing issues such as climate change and regional interconnectivity.”
Jin noted that both institutions will collaborate to mobilize additional resources and promote innovation in infrastructure financing. He explained that the MoU lays out a comprehensive framework for cooperation, including joint project preparation and co-financing for both sovereign and non-sovereign sectors. Strategic priorities covered under the agreement include enhancing climate resilience, cross-border connectivity, digital infrastructure and sustainable urban development.
Founded in 2016, the Beijing-based AIIB is a multilateral development bank with a capital base of $100 billion and 110 approved members. It focuses on infrastructure financing that fosters a sustainable and inclusive global future. Established in 1972 and headquartered in Kuwait, the Arab Fund is a regional financial institution dedicated to supporting economic and social development in the Arab world.
The Fund finances projects in infrastructure, health, education, water, and public services through a range of instruments, including loans, grants and technical assistance. The Fourth International Conference on Financing for Development, hosted by Spain, kicked off Monday and runs through Thursday. The conference aims to advance solutions to global development financing challenges and develop a new framework for achieving the SDGs. — KUNA
