The Kuwait Fund for Development: local initiatives and economic and social activities

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The Kuwait Fund for Development: local initiatives and economic and social activities

– An annual deduction of 25% of the profits of “Sakaniah” with a total of 376 million
Supporting the resources of the Credit Bank with bonds issued for the benefit of the Fund, amounting to .500 million
– 569.3 million Kuwaiti offices and contracting companies benefited from loans and grants
One of the first institutions to contribute to the fund to confront “Corona” with 30 million
– 4 million grants to finance the adaptation and resilience project in cooperation with the United Nations

The Deputy Director General of the Kuwait Fund for Development, Nidal Abdulaziz Al-Olayan, affirmed that the fund, for more than half a century, has played an active role and a clear effort in advancing the regional and global development process, as the first development institution of its kind in the region.

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However, since the beginning of the new decade, it has become more reactive to developments in local community development, in line with its development efforts in the developing world.

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Support “credit” and “residential”

Al-Olayan stressed that the fund is enhancing its social responsibility locally, through its contribution to many local social and economic activities and initiatives, to support development efforts inside Kuwait, without prejudice to its mission and basic mission.

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Perhaps the most prominent of these contributions came in 2002, when an agreement was reached between the Kuwait Credit Bank (formerly the Savings and Credit Bank) and the Fund to issue bonds in favor of the Fund in the amount of 500 million dinars, to help meet housing demands at an interest rate of 2% annually for a period of 20 years.

In the same context of the housing issue, Olayan indicated that since 2003, the fund has deducted no more than 25 percent of its annual net profits and transferred it to the Public Corporation for Housing Welfare.

So far, an amount of 376 million Kuwaiti dinars has been transferred to the Corporation, while it is scheduled, after approving the final account for the fiscal year 2020-2021 by the National Assembly, that the amounts owed for this fiscal year, which amount to 89 million dinars, will be transferred to the Corporation.

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private sector support

Al-Olayan pointed to the most important features of the local role of the Fund as well as direct and indirect support to the Kuwaiti private sector, which is evident in many ways, foremost of which is its keenness to encourage Kuwaiti consulting offices and contracting companies to participate in the implementation of projects financed by the Fund in the countries benefiting from its development activity. The Kuwaiti offices and contracting companies individually benefited from the loans and grants of the Fund and the grants of the State of Kuwait about 569.3 million dinars (until June 20210), while their total benefit in alliance with foreign companies amounted to about 161.4 million dinars (until June 2021).

Promote human development

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The Deputy Director-General added that the Fund has a prominent and pioneering role in promoting human development in Kuwait, through the training program for newly graduated Kuwaiti engineers and architects, which was launched in 2004 with the aim of developing national cadres and providing them with experience in an effort to increase their capabilities and expertise, and to provide the local market with competencies. The number of program graduates since its launch until September 2021, is 789 trainees.

As well as the initiative of the (Be among the Outstanding) program, which was launched in 2010, in cooperation with the Ministry of Education, to educate new generations about the importance of joint cooperation, and the need for concerted development efforts between different countries, through trips for outstanding secondary school students to some countries benefiting from the Fund’s development assistance.

In this context, the Fund has arranged visits to more than 15 countries for 264 outstanding students.

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Al-Olayan indicated that the Kuwait Fund was one of the first institutions that contributed to the resources of the Contributions Fund to Confront the Spread of the Corona Virus, which was launched by the Council of Ministers with an amount of 30 million dinars, a contribution from the fund to support the government’s efforts to combat the pandemic.

Adaptation and Resilience Project

He pointed to the Fund’s recent contribution to financing the project for adaptation and resilience to cross-border sand and dust storms between Iraq and Kuwait, which falls under the framework of its social responsibility in supporting the State of Kuwait’s local, regional and international environmental commitments, and in supporting development efforts inside Kuwait by reducing the negative health and economic effects of sandstorms.

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The aforementioned project, which the Fund contributes to financing with a grant of 4 million dinars, is the culmination of the efforts of joint work and bilateral cooperation between the State of Kuwait and the United Nations Human Settlements Program, in achieving a set of sustainable development goals, most notably creating sustainable cities and local communities, and expanding the scope of measures to mitigate the effects of Climate change and adaptation, strengthening global partnerships and cooperation in achieving development goals.

Self-financing

He also revealed that the Fund paid Kuwait’s contributions to a number of international and regional development institutions, to serve the objectives of the country’s foreign policy, and to cover its pledges at donor meetings, to contribute to supporting and assisting developing countries.

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Olayan indicated that the Fund relies entirely on its own resources to finance its development activities, to help Arab countries and other developing countries, including providing loans and other relief assistance.

Source: Al-Rai

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