OPEC Fund Sets Record $2.3 Billion in Commitments to Drive Global Development
The OPEC Fund for International Development reached a milestone in 2024, committing a record-breaking $2.3 billion to global development initiatives—marking a 35% increase from the previous year. These funds, allocated across 70 projects worldwide, are driving progress in climate action, global food security, the energy transition, and sustainable social and economic growth.
OPEC Fund President Abdulhamid Alkhalifa highlighted the significance of this achievement, stating:
“In 2024, the OPEC Fund set a new benchmark in delivering impactful development finance to tackle global priorities. Our record commitments underscore our ability to boost climate action and social resilience, as well as the strength of our partnerships with countries and development institutions like the World Bank and the Arab Coordination Group. As we approach our 50th anniversary, we are well positioned to maximize impact and create lasting benefits for communities worldwide.”
The OPEC Fund’s 2024 financing was distributed across various regions:
- Middle East & North Africa, Europe & Central Asia: 39%
- Sub-Saharan Africa: 34%
- Asia & the Pacific: 13%
- Latin America & the Caribbean: 11%
- Regional & global projects: 3%
These funds were delivered through a range of financial instruments, including public and private sector lending, trade finance, and grants to support sustainable growth.
The largest segment of last year’s funding was policy-based lending (19 percent), supporting government-led sustainable development programs and policy implementation in countries such as Armenia (US$50 million), Cote D’Ivoire (US$60 million), Jordan (US$100 million), Montenegro (US$50 million), Morocco (US$100 million), Sri Lanka (US$50 million) and Uzbekistan (US$70 million).
Significant delivery to support global food security and climate action:
Compared to 2023, the OPEC Fund tripled its commitments to the agriculture sector, in line with its strategic priority to boost global food security. The OPEC Fund provided US$261 million in financing to promote agricultural sustainability in Benin (US$26 million), Eswatini (US$20 million), Honduras (US$15 million), Lesotho (US$20 million), Malawi (US$20 million), Rwanda (US$20 million), Tanzania (US$50 million) and Türkiye (US$50 million).
In 2024, the OPEC Fund delivered on its Climate Action Plan ahead of target. Aligned with this strategy, renewable energy projects constituted nearly 40 percent of the institution’s energy sector commitments last year. These included the Begana and Gamri hydro project in Bhutan (US$50 million), the Suez wind farm in Egypt (US$30 million), the Rogun hydropower project in Tajikistan (US$25 million) and a 42 MW wind farm in Uganda (US$16.5 million). Additional energy investments targeted improved transmission and connectivity in the Dominican Republic (two US$60 million loans) and Mauritania (US$40 million), as well as expanded energy access in Uzbekistan (US$37.5 million), all contributing to Sustainable Development Goal 7 – Clean and Affordable Energy.
Boosting sustainable and climate resilient infrastructure, significant funding (12 percent) was delivered to enhance connectivity in the transport sector. Major projects included investments in Madagascar (US$30 million), Oman (US$180 million), Paraguay (US$50 million), Senegal (US$38 million), Tanzania (US$41 million) and Uganda (US$30 million).
In the financial sector, the OPEC Fund allocated more than US$270 million to partner with governments and local banks for on-lending to small and medium-sized enterprises, driving job creation and enhancing access to finance in Armenia, Bangladesh, Bosnia and Herzegovina, the Dominican Republic, Nepal, Paraguay and Uzbekistan. Another US$375 million in trade finance supported the movement of critical commodities and goods, including agricultural products, to and from developing economies.
In 2024, the OPEC Fund strengthened partnerships with key institutions, including the African Development Bank (AfDB), Arab Coordination Group (ACG), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB); signed a co-financing agreement with the World Bank Group and MoUs with the International Fund for Agricultural Development (IFAD) and FONPLATA. The OPEC Fund also signed Country Framework Agreements with Uzbekistan, Kazakhstan, Turkmenistan aiming to further deepen the institution’s impact in the Central Asia region.