Opec Fund delivers record results in 2023 with $1.7bn in development funding

Business Sunday 04/February/2024 08:30 AM
Opec Fund delivers record results in 2023 with $1.7bn in development funding

Vienna: The Opec Fund for International Development, a multilateral development finance institution headquartered in Vienna, Austria, expanded its new commitments to $1.7 billion across 55 projects globally in 2023, providing funding to address climate change and energy transition, support social and economic resilience and boost sustainable growth.

The organisation was established 48 years ago and the 2023 results represent a record in new commitments.

Opec Fund Director-General Abdulhamid Alkhalifa, said, "In 2023, the OPEC Fund increased its impact through the delivery of development support in a challenging global environment. We grew our lending programme across the board in response to strong demand by our partner countries and thanks to our success in raising additional funds from the capital markets.

We were also able to leverage our partnerships to mobilise development support by working with multilateral development banks and development finance institutions such as the Arab Coordination Group. And we are well on track with our 2030 target to commit 40 per cent of all new financing to climate action."

In 2023, the Opec Fund delivered strong results across Africa (42 per cent of investments), the Middle East and North Africa & Europe and Central Asia (20 per cent), Latin America and the Caribbean (20 per cent), as well as Asia and the Pacific (18 per cent) through public and private sector lending, trade finance and grants operations.

The largest share in last year's lending program was dedicated to policy-based-lending (31 per cent).

The transport and storage sector received the major share of Opec Fund's support (14 per cent).

Aligned with the Opec Fund Climate Action Plan, support in renewable energy projects constituted nearly 60 per cent of all lending in the energy sector.