OFID and the Arab Private Sector

OFID, the OPEC Fund for international Development enjoys a recent but intense association with the private sector in the Arab world. In line with its mandate, OFID’s funding of the sector promotes investments in eligible Arab Countries as well as Arab investments in non-Arab eligible countries.

As a prelude to its private sector operations, OFID has signed with 65 countries , of which 11 Arab , an agreement for the encouragement and Protection of investment, which confers to the operations of the Fund a status and privileges on par with those of the most favored multilateral development institutions.

Building on its knowledge of the needs of the region and world- wide, OFID is dedicating a fully- funded window providing for the special needs of private investments in emerging and frontier economies.

In operating its private sector operations, OFID has fashioned a mindset and a mode of operations, which integrate the ideals of public goods and the profit expectation of the private investor.

OFID has deployed a range of instruments and products allowing for sharia compatibility. These include equity and quasi-equity (especially in the financial sector) short and long term debt, and participations in venture capital funds.

OFID has funded in Arab countries and elsewhere industries such as mining, energy, metallurgy, manufacturing and agro-industry and services such as banking, leasing, transport and telecommunications .In all cases OFID is particularly committed to supporting the development of the Small and Medium Scale Enterprises.

OFID’s rapidly expanding operations in the private sector have so far reached 30 countries of varying risks, in Africa, Asia and Latin America.

OFID has committed over US$ 10 billion to its public and private investments operations and plans to add to its well-established record in the public sector, the fruits of a private sector driven cooperation between corporate entities of its Member countries and those of other developing countries.

To its Arab Private Partners, OFID offers the sensitivity of its seven Arab Members Countries , and the benefits of a long presence in over one hundred countries.