Saudi Development Fund Commits $10 Million to Boost AIIB’s Infrastructure Programs

The Saudi Fund for Development has signed a $10 million contribution agreement with the Asian Infrastructure Investment Bank (AIIB) to support the financial institution’s newly established programs, as reported by the Saudi Press Agency (SPA).
This initiative aims to strengthen infrastructure development in low-income member countries, helping AIIB bridge the financing gap in infrastructure and other productive sectors in these nations.
The agreement underscores the collaborative efforts between Saudi Arabia and international institutions to fund projects and development programs in less developed countries, with the ultimate goal of achieving economic prosperity and social growth.
The signing of the agreement took place during the annual meeting of AIIB’s Board of Governors in Sharm El Sheikh, Egypt. This event serves as an opportunity to assess AIIB’s performance, gather insights from its shareholders, and discuss strategic direction and initiatives.
Last month, the Saudi Fund for Development laid the foundation stone for the Mangoky Bridge in Madagascar, an island country off the southeastern coast of Africa. The fund contributed $20 million as a soft loan to the project, which connects the Atsimo-Andrefana and Menabe regions, housing Madagascar’s most vital agricultural and tourism assets. The bridge is expected to significantly reduce travel time between these regions, facilitating the quicker transportation of local farmers’ products to the market.
To date, the fund has extended loans totaling $69 million to finance six development projects in Madagascar. Since its establishment in 1974, the fund has undertaken over 700 development projects and programs in more than 90 developing countries worldwide, with a total value exceeding $18.7 billion. These initiatives have played a pivotal role in contributing to sustainable international development.
In January, the Saudi Fund for Development signed a deal with Pakistan’s Ministry of Economic Affairs to finance oil derivatives amounting to $1 billion. This support from Saudi Arabia came at a crucial time when Pakistan was grappling with a severe economic crisis, marked by dwindling foreign exchange reserves and a rapidly depreciating national currency.
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