AIIB And SFD Forge Strategic Partnership To Address Global Development Challenges Effectively

The Asian Infrastructure Investment Bank (AIIB) and the Saudi Fund for Development (SFD) have entered into a memorandum of understanding (MoU) to strengthen their collaboration. This agreement aims to promote sustainable, resilient, and inclusive development in AIIB member countries across Asia and beyond. The partnership focuses on mobilising resources through joint projects, knowledge sharing, capacity-building initiatives, and coordinated communication efforts.

AIIB President Jin Liqun and SFD CEO Sultan bin Abdulrahman Al-Marshad signed the MoU in Washington, D.C., during the 2024 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG). The signing ceremony was attended by Saudi Vice Minister of Finance and AIIB Board Director Abdulmuhsen bin Saad Alkhalaf. This collaboration is rooted in a shared commitment to addressing global development challenges.

The Kingdom of Saudi Arabia has recently contributed to AIIB's Special Fund Window for Less Developed Members. This MoU signifies a crucial advancement in both organisations' dedication to enhancing development impact in underdeveloped regions. "Partnerships lie at the heart of AIIB's operations," stated President Jin. "The signing of this MoU marks a vital step forward in the continued engagement between AIIB and Saudi Arabia."

SFD CEO Sultan Abdulrahman Al-Marshad expressed that SFD is committed to supporting least developed countries and promoting sustainable growth. "We strongly believe that partnerships are essential to fostering long-term, impactful development," he said. "Working closely with AIIB is a natural fit, given our aligned mission of promoting sustainability and resilience."

Through this new partnership, AIIB and SFD aim to scale their efforts to provide long-term economic benefits to countries in Asia and beyond. The collaboration seeks to unlock new synergies and enhance institutional capabilities, driving resilient and inclusive growth where it is most critically needed.

AIIB's Mission for Sustainable Infrastructure

AIIB is a multilateral development bank focused on financing infrastructure with sustainability at its core. Since beginning operations in Beijing in 2016, it has grown to 110 approved members worldwide. With a capitalisation of $100 billion, it holds an AAA rating from major international credit rating agencies.

Collaborating with partners like SFD allows AIIB to meet clients' needs by unlocking new capital, investing in green infrastructure enabled by technology, and promoting regional connectivity. This partnership aligns with AIIB's mission to finance infrastructure for tomorrow.

SFD's Global Development Impact

In 2024, SFD celebrated 50 years of global development impact, having touched hundreds of millions of lives across 100 countries in Africa, Asia and the Pacific, Latin America and the Caribbean, and Eastern Europe. As Saudi Arabia's official international development arm, SFD has financed over 800 projects with total funding amounting to $20 billion.

Since 2023, SFD has extended development loans to 11 new countries classified as Small Island Developing States (SIDS). This expansion highlights SFD's ongoing commitment to advancing sustainable growth globally.

This strategic partnership between AIIB and SFD represents a significant milestone in their joint efforts towards fostering meaningful change in developing countries. By leveraging their combined expertise and resources, they aim to drive impactful development initiatives that benefit communities across Asia and beyond.

With inputs from SPA