The Arab Gulf development funds : an analysis of their legal structure and operations
This study examines three bilateral aid funds : the Kuwait Fund for Arab Economic Development, (KFAED), the Abu Dhabi Fund for Arab Economic Development, (ADFAED), and the Saudi Fund for Development, (SFD), which were established in 1961, 1971 and 1974 respectively. It also analyses the multi-lateral Arab Fund for Economic and Social Development, (AFESD), which was established by the Arab League in 1968. Collectively they are the principal vehicles used by the Gulf states to utilize their oil wealth to promote economic development in the Third World in general and the Arab world in particular. Operating as autonomous organisations, which are able to remain neutral in the face of political and ideological pressures, the Arab Gulf Funds have proved remarkably successful and influential institutions. This study aims at analysing the legal structure and operations of the Arab Gulf Funds. Attention is then focused on the future and the ways in which the funds can operate more effectively. I believe that a new fund, which would be known as the Arab Gulf Development Fund, (AGDF), is required. This fund, which would be administered by the Gulf Co-operation Council, (GCC), could coordinate the Arab Gulf's aid operations. A new comprehensive strategy is required and a working plan should be prepared for the new fund to adopt and execute. This study attempts to achieve two related objectives. The first is to propose specific amendments to the legal framework of the existing Gulf development funds. The second objective is to propose the establishment of the new Kuwait based Arab Gulf Development Fund, (AGDF). This would enable better results to be achieved in both the GCC member states and in the developing countries. Specific recommendations are made for the Gulf's aid strategy in light of the formation of the Gulf Co-operation Council. Co-operation between the development funds and investment institutions of the industrialised countries and those in the GCC states are, however, essential. Only by joining hands and working together will progress and economic development be made possible. It should be remembered by everyone that the modern world is not only interdependent but that it is for all of humanity.