OPEC Fund Working with Lebanon for Major Economic Development Initiative

OPEC Fund is working with Lebanon to determine the best time and strategy to ensure that they can make a vast impact on the country’s development.

The president of the Organization of the Petroleum Exporting Countries (OPEC) Fund for International Development or OPEC Fund said that negotiations are ongoing with the Lebanese authorities for a significant intervention.

OPEC Fund is a development funding agency focused on helping people meet their basic needs like food, energy, clean water and sanitation, healthcare, and education. It supports many countries, including the Maldives, Mongolia, Nepal, the Philippines, Sri Lanka, Bangladesh, Bhutan, Cambodia, India, and many more.

On the first day of the AlUla Conference for Emerging Market Economies, Abdulhamid Al-Khalifa, head of the OPEC Fund for International Development, stated that the OPEC Fund is working with Lebanon to determine the best time and strategy to ensure that they can make a vast impact on the country’s development.

The OPEC Fund has invested almost $27 billion in projects to help develop more than 125 countries. This initiative also aligns with the fund’s ongoing commitment to help flourish the countries globally. It also fits the fund’s objective to empower people, build stronger communities, and promote development.

Al-Khalifa assured that the OPEC Fund is a development institution, and these institutions will take more risks when it comes to development and is counter-cyclical. When a country faces significant challenges, these institutions intervene with high risks, but their goal is to maximize the impact of development rather than maximizing the return on assets.

The president further emphasized that these institutions are purely focused on encouraging development and do not have any political agenda.

Al-Khalifa clarified that the OPEC Fund included a public-sector arm and private-sector component.

He added that the fund was already working on investment projects through windows and arms in Lebanon.

He pointed out that they will strategize based on the situation and the need for correct timing to take action so that the impact would be the best way possible.

He stated that the OPEC fund is working with the Lebanese government and waiting to carry out intervention shortly.

The president also emphasizes that even though Lebanon has significant potential for growth, it also faces some serious challenges, like geopolitical ones.

Al-Khalifa stated that many countries in Lebanon are recovering from these challenges and hopes that the fund and help from the OPEC Fund will help in the country’s development.

He continued stating that their future is full of potential and significant economic opportunities, especially for countries that have just emerged from war.

He also assured that other countries, such as the Gulf Cooperation Council (GCC) and some Middle Eastern and North African countries, are doing well economically.

Al-Khalifa expressed that he feels optimistic about the future, but it depends on many factors, and they should reduce many hazards.

The president also emphasizes that Saudi Arabia was one of the key founding members of the OPEC Fund, founded fifty years ago.

Al-Khalifa, the fund focuses on helping develop low- and middle-income countries. He pointed out that Saudi Arabia was one of the significant investors in the fund. It supported other countries through the OPEC Fund platform, one of the channels Saudi Arabia uses to help develop countries globally.

He added that Saudi Arabia was one of the world’s largest donors when it comes to gross domestic product (GDP), and they are providing their assistance through bilateral institutions and multilateral platforms like the World Bank, OPEC Fund, Islamic Development Bank, and other regional banks to help their funding.

Previously, the OPEC Fund for International Development has granted a $200,000 emergency aid grant to help support the victims of the Beirut Port explosions.

The grant was to provide essential relief supplies and emergency operations undertaken by the Lebanese Red Cross Society and Syrian Red Crescent Society for the victims of the devastating cycle of violence in Lebanon.