The OPEC Fund for International Development (OFID) is the intergovernmental development finance institution established in 1976 by the Member States of the Organization of the Petroleum Exporting Countries (OPEC). OFID was conceived at the Conference of the Sovereigns and Heads of State of OPEC Member Countries, which was held in Algiers, Algeria, in March 1975. A Solemn Declaration of the Conference “reaffirmed the natural solidarity which unites OPEC countries with other developing countries in their struggle to overcome underdevelopment,” and called for measures to strengthen cooperation between these countries.

The means

• By extending concessionary financial assistance in the form of loans for development projects and programs, balance of payments support and trade financing.
• By participating in the financing of private sector activities in developing countries.
• By providing grants in support of technical assistance, food aid, research and similar activities, and humanitarian emergency relief.
• By contributing to the resources of other development institutions whose work benefits developing countries.
• By serving as an agent of OPEC Member Countries in the international financial arena whenever collective action is deemed appropriate.

OFID resources

OFID’s resources consist of voluntary contributions made by OPEC Member Countries and the accumulated reserves derived from its various operations. At the close of the year 2018, contributions pledged by OPEC Member Countries totalled US$4,433m out of which US$3,462m was direct contributions to OFID. The total of paid contributions from Member Countries was US$4,262m and the Reserve Account stood at US$2,941m.

The aims

• To promote cooperation between OPEC Member Countries and other developing countries as an expression of South-South solidarity.
• To help particularly the poorer, low-income countries in pursuit of their social and economic advancement.

The co-financing partners

To optimize the impact of its contribution to international development, OFID cooperates closely with the bilateral and multilateral agencies of its Member Countries, the World Bank Group, the regional development banks and the specialized agencies of the United Nations, as well as a host of non-governmental and other organizations.

The beneficiaries

All developing countries, with the exception of OPEC Member Countries, are in principle eligible for OFID assistance. The least developed countries, however, are accorded higher priority. So far, 134 countries worldwide have benefited from OFID’s financial assistance.