The signing occurred on the sidelines of the Fourth International Conference on Financing for Development (FfD4) in Seville, Spain.
President of AIIB Jin Liqun and Chairman and Director General of the Arab Fund Bader Alsaad signed the agreement.
AIIB, founded in 2016, is a multilateral development bank with 110 approved members globally and a capital base of $100 billion.
AIIB focuses on financing infrastructure-related projects. It also supports projects that enhance regional connectivity and promote sustainable economic development across Asia and other regions.
The newly inked MoU sets a comprehensive framework for collaboration between the two institutions. It covers sovereign and non-sovereign co-financing, joint project preparation, and strategic priority alignment in areas such as climate resilience, cross-border connectivity, digital infrastructure, and sustainable urban development.
“This partnership with the Arab Fund represents a major milestone in our shared pursuit of sustainable development. By combining AIIB’s infrastructure finance expertise with the Arab Fund’s regional knowledge, we can jointly mobilize more capital, drive innovation in financing, and deliver projects that directly address climate, digital, and urban infrastructure challenges,” said Liqun.
“It will enable us to deliver on our mission to finance sustainable development across the Arab region. The partnership also aligns directly with the Sustainable Development Goals (SDGs). We aim to channel vital resources to priority infrastructure projects that catalyze long-term prosperity and sustainability in our member countries,” Alsaad stated.
The Arab Fund, established in 1972 and headquartered in Kuwait, is a regional financial institution dedicated to advancing economic and social development across the Arab world.
The fund provides loans, grants, and technical assistance for critical projects in infrastructure, health, education, water and sanitation, and public services.
It also plays a key role in regional cooperation and integration through its development financing initiatives.
With a focus on demand-driven, high-impact initiatives, the AIIB-Arab Fund partnership is expected to unlock large-scale financing for critical infrastructure projects in sectors including clean energy, transport and logistics, digital connectivity, water and sanitation, and urban development and resilience.
The agreement also positions both institutions to enhance their support for countries facing elevated financing challenges due to climate vulnerabilities or regional instabilities.
The collaboration aims to facilitate cross-border infrastructure solutions, such as transport corridors and energy grids, that enhance regional integration and promote inclusive economic growth.
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