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© Middle East Institute. This article is for personal research only and may not be copied or distributed in any form without the permission of The Middle East Journal. The Kuwait Fund for Arab Economic Development and Its Activities in African Countries, 19612010 Benyan Turki This article aims to highlight the impact of the Kuwait Fund for Arab Economic Development (KFAED) on Kuwaits foreign relations, especially with African countries. For more than five decades, KFAED has strengthened Kuwaits ties to the developing world and secured political support throughout various crises, particularly and the Iraqi invasion of 1990. The article sheds light specifically on the nature, extent, and scope of KFAED activities in Africa. Secondly, the article shows how the fund has helped numerous African countries in various economic aspects as well as contributing to social development. Though considered a developing country, Kuwait is a leading contributor of foreign economic aid, especially on the African continent. Kuwaits aid projects are not limited to Africa, however; they have significantly evolved since its independence from British rule in 1961, to include many countries in various parts of the world.1 The Kuwaiti governments foreign aid policy goes beyond disaster relief; it also includes active and steady contribution to economic development.2 In this respect, Kuwaits aid to African countries is deeply rooted in historical relationships between Kuwait and Africa that developed over centuries of sustained economic and political contact.3 This article highlights the impact of Kuwaits foreign economic aid on its foreign relationships, especially with Africa. The article also analyzes the aid and support provided by the Kuwait Fund for Arab Economic Development (KFAED) to selected African countries. Considering the complexity and extent of the topic, this study on KFAEDs activities is limited to a cross section of countries that represent different Benyan Turki is a professor in and former chair of the History Department at Kuwait University. He is the author of many books and articles on the historical linkages between East Africa and the Arab world. Most recently, he is the author of the book Zanjabar wa-Jiwaruha al-Ifriqi [Zanzibar and Its African Surroundings] (Al Sad, 2010). 1. Sayf Marzuq al-Shamlan, Min Tarikh al-Kuwayt [From the History of Kuwait] (Cairo: Dar al- Nahda, 1959), p. 117; Abd al-Aziz al-Rashid, Tarikh al-Kuwayt [The History of Kuwait] (Beirut: al-Hayat, 1962), pp. 309, 372. 2. Kuwait Fund for Arab Economic Development (KFAED), Loans & Grants and Technical Assistance for Arab Countries as of 30th September 2009(Loans for Arab Countries, 2009), http:// www.kuwait-fund.org/images/stories/publications/MubarakUpload/arab%20loans%20eng%20 small.pdf, p. 2; KFAED, Kuwait Fund Contributions to Support Development over the Islamic World(KF Contributions over the Islamic World), http://www.kuwait-fund.org/images/stories/ publications/MubarakUpload/ishamat%2C%20byanat%2Cislamiya.pdf. 3. Benyan Saud Turki, Zanjabar wa-Jiwaruha al-Ifriqi [Zanzibar and Its African Surroundings] (Kuwait City: Al Sad, 2010), p. 83; Benyan Saud Turki, al-Arab fi Sharq Ifriqiya: Tarikh al-Arab al- Hadith [The Arabs in East Africa: The Modern History of the Arabs] (Kuwait City: Kuwait University Scientific Publication Council, 2006), p. 153; Abd al-Aziz Husayn, Muhadarat an al-Mujtamaal-Arabi bi-l-Kuwayt [Lectures on Arab Society in Kuwait] (Cairo: Mahad al-Dirasat al-Arabiyya al-Aliyya, 1960), pp. 7981; Ahmad al-Mazini, al-Kuwayt wa-Tarikhuha al-Bahri, aw Rihlat al-Shira[Kuwait and Its Maritime History, or the Sail Voyage] (Kuwait City: That Al Salasil, 1986), p. 15. 2 MIDDLE EAST JOURNAL African regions. The categories of African countries chosen for analysis include Arab, Muslim, non-Muslim, and non-Arab African nations to illustrate the nature, extent, and scope of KFAEDs activities and to discuss the main regions where its efforts have been concentrated. The four countries chosen to represent each of the abovementioned identities are the Kingdom of Morocco, the United Republic of Tanzania, the Republic of Senegal, and the Republic of Mozambique. Morocco is a North African Arab country with strong relations with Kuwait. Tanzania is an East African country, with which Kuwait has a long history of political and economic ties. Senegal is a West African country whose relationship developed significantly with Kuwait over the last four decades. Kuwait established a relationship with

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© Middle East Institute. This article is for personal research only and may not be copied or

distributed in any form without the permission of The Middle East Journal.

The Kuwait Fund for Arab Economic Development

and Its Activities in African Countries, 1961–2010 Benyan Turki This article aims to highlight the impact of the Kuwait Fund for Arab Economic Development (KFAED) on Kuwait’s foreign relations, especially with African

countries. For more than five decades, KFAED has strengthened Kuwait’s ties to the developing world and secured political support throughout various crises, particularly and the Iraqi invasion of 1990. The article sheds light specifically on the nature, extent, and scope of KFAED activities in Africa. Secondly, the article shows how the fund has helped numerous African countries in various economic aspects as well as contributing to social development.

Though considered a developing country, Kuwait is a leading contributor of foreign

economic aid, especially on the African continent. Kuwait’s aid projects are not limited

to Africa, however; they have significantly evolved since its independence from British

rule in 1961, to include many countries in various parts of the world.1 The Kuwaiti

government’s foreign aid policy goes beyond disaster relief; it also includes active and

steady contribution to economic development.2 In this respect, Kuwait’s aid to African

countries is deeply rooted in historical relationships between Kuwait and Africa that

developed over centuries of sustained economic and political contact.3

This article highlights the impact of Kuwait’s foreign economic aid on its foreign

relationships, especially with Africa. The article also analyzes the aid and support

provided by the Kuwait Fund for Arab Economic Development (KFAED) to selected

African countries. Considering the complexity and extent of the topic, this study on

KFAED’s activities is limited to a cross section of countries that represent different Benyan Turki is a professor in and former chair of the History Department at Kuwait University. He is the author

of many books and articles on the historical linkages between East Africa and the Arab world. Most recently, he

is the author of the book Zanjabar wa-Jiwaruha al-Ifriqi [Zanzibar and Its African Surroundings] (Al Sad, 2010).

1. Sayf Marzuq al-Shamlan, Min Tarikh al-Kuwayt [From the History of Kuwait] (Cairo: Dar al-

Nahda, 1959), p. 117; ‘Abd al-‘Aziz al-Rashid, Tarikh al-Kuwayt [The History of Kuwait] (Beirut:

al-Hayat, 1962), pp. 309, 372.

2. Kuwait Fund for Arab Economic Development (KFAED), “Loans & Grants and Technical Assistance

for Arab Countries as of 30th September 2009” (“Loans for Arab Countries, 2009”), http://

www.kuwait-fund.org/images/stories/publications/MubarakUpload/arab%20loans%20eng%20

small.pdf, p. 2; KFAED, “Kuwait Fund Contributions to Support Development over the Islamic

World” (“KF Contributions over the Islamic World”), http://www.kuwait-fund.org/images/stories/

publications/MubarakUpload/ishamat%2C%20byanat%2Cislamiya.pdf.

3. Benyan Sa‘ud Turki, Zanjabar wa-Jiwaruha al-Ifriqi [Zanzibar and Its African Surroundings]

(Kuwait City: Al Sad, 2010), p. 83; Benyan Sa‘ud Turki, al-‘Arab fi Sharq Ifriqiya: Tarikh al-‘Arab al- Hadith [The Arabs in East Africa: The Modern History of the Arabs] (Kuwait City: Kuwait University

Scientific Publication Council, 2006), p. 153; ‘Abd al-‘Aziz Husayn, Muhadarat ‘an al-Mujtama‘ al-‘Arabi bi-l-Kuwayt [Lectures on Arab Society in Kuwait] (Cairo: Ma‘had al-Dirasat al-‘Arabiyya

al-‘Aliyya, 1960), pp. 79–81; Ahmad al-Mazini, al-Kuwayt wa-Tarikhuha al-Bahri, aw Rihlat al-Shira‘ [Kuwait and Its Maritime History, or the Sail Voyage] (Kuwait City: That Al Salasil, 1986), p. 15.

2 MIDDLE EAST JOURNAL

African regions. The categories of African countries chosen for analysis include Arab,

Muslim, non-Muslim, and non-Arab African nations to illustrate the nature, extent,

and scope of KFAED’s activities and to discuss the main regions where its efforts have

been concentrated. The four countries chosen to represent each of the abovementioned

identities are the Kingdom of Morocco, the United Republic of Tanzania, the Republic

of Senegal, and the Republic of Mozambique.

Morocco is a North African Arab country with strong relations with Kuwait. Tanzania

is an East African country, with which Kuwait has a long history of political and

economic ties. Senegal is a West African country whose relationship developed significantly

with Kuwait over the last four decades. Kuwait established a relationship with

Mozambique only in the 1980s.

KUWAIT-AFRICA RELATIONS PRIOR TO KFAED’S ESTABLISHMENT Similar to other Gulf countries, Kuwait shares a common religion, language, and

values with many of Africa’s Arab and Muslim-majority countries. Kuwait’s strategic location

on the Gulf makes it one of the key trading centers in the Middle East. Historically,

Kuwait has been a main hub on caravan routes linking Baghdad, Aleppo, and Najd and

an important port for trade ships from Asia and Africa. Thus, Kuwait’s overseas trading

relationships spread to East Africa, which became a prime destination for Kuwait’s navigators

and ships, developing and strengthening ties between peoples of the Arabian Peninsula

and Africa, and East Africa in particular.4 For many centuries, the eastern coast of

Africa served as a key passage for Arab migration to Africa, spreading Arab and Islamic

influence through the region. Indeed, the area of influence stretches from Cape Guardafui

in present-day Somalia in the north to Cape Delgado in present-day Mozambique in the

south, a region known as the Negro Coast (Sahil al-Zanj) or Zanzibar.5

Kuwait has a particular link with the sea and maritime trade due to its location

on the coast. Since ancient times, the people of what is today Kuwait traded pearls,

and had highly developed fishing and ship-building industries. By the dawn of the 4. See, Maymuna Khalifa al-Sabah, al-Kuwayt: Hadara wa-Tarikh, 1613–1800 [Kuwait: Civilization

and History, 1613–1800] (Kuwait City: printed by author, 2003), p. 112; and, Ahmad Mustafa

Abu Hakima, Tarikh al-Kuwayt al-Hadith, 1750–1965 [The Modern History of Kuwait, 1750–1965]

(Kuwait City: That Al Salasil, 1984), p. 269. Within the Gulf, Kuwait’s fleet was considered only

second to that of Muscat, not including the fleet of Bushehr. Mazini, Kuwait and Its Maritime History,

p. 25. For more, see studies on East Africa, including Benyan Sa‘ud Turki, “al-Jaliya al-Hindiyya

fi Sharq Ifriqiya: Bayn Hamirtun wa-l-Sayyid Sa‘id, 1830–1856” [“The Indian Community in East

Africa: Between Hammerton and Sayyid Sa‘id, 1830–56”], Majallat al-Mu’arrikh al-Misri, No. 14

(July 1994), pp. 11–58. For more about the various types and features of Gulf boats, see, Khalid Salim

Muhammad, Rababinat al-Khalij al-‘Arabi wa-Musannafatuhum al-Milahiyya [The Captains of the

Arab Gulf and Their Maritime Works] (Kuwait City: Rubay‘an, 1982), pp. 163–77.

5. Turki, The Arabs in East Africa, p. 153; Jamal Zakariyya Qasim, Dawlat al-Busa‘id fi ‘Uman

wa-Sharq Ifriqiya: Mundh Ta’sisiha wa-hatta Nihayat Hukmiha fi Zanjabar wa-Bidayat ‘Ahdiha

al-Jadid fi ‘Uman, 1741–1970 [The Busa‘id State in Oman and East Africa: From Its Establishment

until the End of its Rule in Zanzibar and the Start of Its New Era in Oman, 1741–1970] (al-‘Ayn,

UAE: Markaz Zayid li-l-Turath wa-l-Tarikh, 2000), p. 22; Sa‘id bin ‘Ali al-Mughiri, Juhayna: al-Akhbar fi Tarikh Zanjabar [Juhayna: Accounts of the History of Zanzibar] (Muscat: Ministry of

National Heritage and Culture, 1979), p. 15.

THE KUWAIT FUND IN AFRICA, 1961–2010 3

20th century, Kuwait’s trade significantly expanded with the introduction of a proactive

independent customs policy, the improvement of its port infrastructure, and the

lowering of customs duties. From these developments, Kuwaitis, as well as other

peoples of the Arabian Peninsula, benefited from both the country’s favorable trade

policies and its access to the East African coast. Ships left the port of Kuwait for

Basra to load dates before riding the seasonal winds through the Gulf toward Muscat

or East African ports. Kuwaiti dhows maintained this tradition even after the discovery

and exploitation of oil in Kuwait.6

The Shaykhdom of Kuwait was known, among other things, for its strong and

excellent ships. A type of Kuwaiti ship, called bum, sailed to the ports along the

western Arabian Peninsula, India, and East Africa and returned with rice, wheat, coffee,

tea, sugar, spices, timber, paper products, and diverse items for town dwellers

and Bedouins.7 The timber imported from India and East Africa was used to build

ships. The main Kuwaiti imports included spices, sandalwood, bamboo, and dried

fish. Kuwaiti traders also imported slaves to be traded, for housework and to serve as

concubines (sarari). Since the 1950s, traditional maritime trade in Kuwait conducted

with sailboats has drastically diminished with the arrival of more modern forms of

transportation in the region.8

Maritime trade expanded between World War I and World War II, when Kuwait’s

ships played a noticeable role in supplying food and shipping. In 1946, large-scale oil exploitation began, and Kuwait became an oil-based economy. This turning point,

along with the development of modern pearl farming, led to the decline of pearl diving

trade with India and East African coast.9 This recent economic shift did not completely

erase these historical links, though Kuwait’s presence in East Africa had limited political

or economical impact until the creation of KFAED in 1961.

In the oil era, KFAED’s activities gave a new impetus to Kuwaiti-African relationships

and established a strong Kuwaiti presence in the African continent. This was

confirmed by various African leaders who praised Kuwait’s role in helping and supporting

their countries. In a press conference organized at Kuwait’s Gulf University on

January 23, 2010, ambassadors from Senegal, Egypt, Mauritania, Zimbabwe, Ethiopia,

Sudan, Benin, and Niger, noted Kuwait’s support of Africa and KFAED’s efforts, in

particular, in strengthening African economies.10

6. Ya‘qub Yusuf Hajji, Nawakhidhat al-Safar al-Shira‘i fi al-Kuwayt [Captains of Sailing Travel

in Kuwait] (Kuwait City: Rubay‘an, 1993), p. 381; Naja ‘Abd al-Qadir al-Jasim and Badr al-Din al-

Khususi, Tarikh Sina‘at al-Sufun fi al-Kuwayt wa-Anshitatiha al-Mukhtalifa [History of Shipbuilding

in Kuwait and Its Various Activities] (Kuwait City: That Al Salasil, 1982), pp. 183–84. Sabah,

Kuwait: Civilization and History, p. 94.

7. Eleanor Calverley, Kunt Awwal Tabiba fi al-Kuwayt [I Was the First Female Doctor in Kuwait],

trans. ‘Abdullah al-Hatim (Kuwait: Dar al-Kutub, 1982), p. 31. Originally published as My Arabian Days and Nights: A Medical Missionary in Old Kuwait (New York: Crowell, 1958).

8. Rashid, The History of Kuwait, p. 84; Abu Hakima, The Modern History of Kuwait, pp. 269–302.

9. Khususi, Studies in the Social and Economic History of Kuwait in the Modern Era, p. 227. Naja

‘Abd al-Qadir al-Jasim, al-Tatawwur al-Siyasi wa-l-Iqtisadi li-l-Kuwayt bayn al-Harbayn, 1914–1939

[Political and Economic Development in Kuwait between the Two Wars, 1914–39] (Cairo: al-Matba‘a

al-Fanniyya al-Haditha 1973), p. 191. ‘Abd al-Mughni, The Old Kuwaiti Economy, p.62.

10. The meeting was convened in Kuwait’s Gulf University for Science and Technology on

January 23, 2010.

4 MIDDLE EAST JOURNAL

KFAED is an important organization not only in facilitating economic development

in Africa, but also in serving Kuwait’s foreign policy objectives while by

strengthening relations with African countries. However, an objective assessment is required

along with continuous improvement and evaluation of KFAED’s activities. Still,

KFAED serves Kuwait’s foreign policy objectives. Unfortunately, KFAED’s efforts of

remain largely unknown due to a relative lack of publicity. Other countries that provide

less assistance than Kuwait are considered to be primary donors in Africa, whereas

Kuwait’s achievements through KFAED received a relative lack of appreciation.

THE ESTABLISHMENT OF KFAED AND THE SCOPE OF ITS OPERATIONS IN AFRICA Before considering KFAED’s in Africa, it is important to mention that the fund

is one of the most prominent development institutions in the Arab World. KFAED’s creation and its organizational structure illustrate the economic assistance that oil-rich

Gulf states have funded in various Arab and African countries, regardless of their religion

and ethnicity. Since the 1960’s the impact of this aid on developing countries’ economies, politics, and societies has been significant. It is therefore important to illustrate

the geopolitical, national, and economic motivations behind Kuwait’s choice to

grant aid to African countries.

Kuwait’s Motives

The discovery of oil in Kuwait and the beginning of its export in 1946 hugely

increased Kuwait’s gross national product (GNP). Oil is the largest industry in Kuwait,

accounting for nearly 90% of the GNP. Naturally, increased oil revenues were dedicated

to serve Kuwait’s foreign interests, namely to establish friendly relations with

as many countries as possible and to dissuade potentially unfriendly countries from

acting against vital Kuwaiti interests. Kuwait also devoted financial resources to promote

Arab, Islamic, regional, and international causes. High among Kuwait’s national

priorities was the dispute over the Kuwait-Iraq border and repeated attempts by Iraqi

governments to annex Kuwait.11

Kuwait gained independence from British rule on June 19, 1961. Just one week

later, Iraqi prime minister ‘Abd al-Karim Qasim declared that Kuwait was rightful part

of Iraq and expressed the Iraq’s intention to annex Kuwait. The Iraqi claims were condemned

by both the Arab world and the international community. Not surprisingly,

security issues — particularly the threat of an Iraqi invasion — were established as and 11. Kuwait is one of the most important oil producers and exporters. It is a founding state of the Organization

of the Petroleum Exporting Countries (OPEC). The fifth biggest oil reserves are in Kuwait, which

represents 10% of the world’s total reserves. Oil and derived products constitutes 95% of exports income

and 80% of government revenues. Kuwait enjoys the fourth per capita income in the world. See, Kuwait

National Competitiveness Committee, Kuwait Competitiveness Report, 2007–2008 (Kuwait City: Kuwait

University, 2008); Abdulkarim Al-Dekhayel, Kuwait: Oil, State and Political Legitimation (Ithaca, NY:

Ithaca Press, 2000), p. 24; Agwani, Politics in the Gulf. p. 111; and, Muhammad Mahmud Tanahi, al-Naft wa-‘Alaqat al-Kuwayt al-Siyasiyya bi-Duwal al-Jiwar, 1911–1990 [Petroleum and Kuwait’s Political Relations

with Neighboring States, 1911–90] (Kuwait: Kuwait Institute for Scientific Research, 2011), p. 93.

THE KUWAIT FUND IN AFRICA, 1961–2010 5

remain a primary concern for the Kuwaiti government.12 Kuwait was thus more than eager

to use its oil revenues to strengthen not only its political ambitions, but its national

sovereignty, food security, and internal stability.

Furthermore, Kuwaiti financial assistance to other Arab and African countries is part

of an effort to gain political support. This effort began in the aftermath of Kuwait’s independence,

to secure the sympathy of both the rulers and publics of other Arab and African

countries.13 Kuwait’s progressive bilateral diplomatic relations with other Arab and African

countries facilitated the influx of Kuwaiti state and private funds into their economies.

The establishment of the Kuwait Fund for Arab Economic Development was announced

on December 31, 1961, six months after Kuwait’s independence from Great

Britain. KFAED played a major role in establishing Kuwait as a donor country in the

region, and reflected the essence of the Kuwaiti spirit of solidarity for major Arab

causes.14 The fund was also political message to Arab and African countries: that Kuwait

would help those who supported Kuwaiti national security, internal stability, and

independence. This political message was conveyed by the emir of Kuwait, Shaykh

‘Abdullah al-Salim Al Sabah, and Badr al-Humaydi, his main political and economic

advisor. Humaydi, who served as KFAED’s general manager in 1986, said that “the oil

revenues will be utilized to help countries which have intensions to support us.”15

KFAED’s creation reflects Kuwaiti decision makers’ prudence, namely Shaykh

‘Abdullah al-Salim Al Sabah, the shaykh and then emir of Kuwait (1950–65). The

future Emir Shaykh Jabir al-Ahmad Al Sabah (reigned 1977–2006) created KFAED

when he was finance minister in 1961. Shaykh ‘Abdullah and Shaykh Jabir understood

KFAED’s importance and its potential positive political impact, which ultimately allowed

Kuwait to gain support from the UN Security Council in many issues it faced,

including Kuwait’s acceptance to the UN. KFAED’s creation revealed a far-reaching

strategy the realization of the State of Kuwait’s foreign policy objectives. As noted by

the fund’s general manager, Badr al-Humaydi, KFAED provided assistance to Iraq,

Jordan, Egypt, and Syria to prove that oil money was not exclusively devoted to Kuwait,

but was to be used to support other nations.16 Today, the fund’s main objective is

to provide loans and aid to other Arab countries with financial debt that lack access to 12. On Iraqi claims on Kuwait and the Kuwaiti-Iraqi border issue, see: Maymuna Khalifa al-

Sabah, al-Kuwayt fi Zill al-Himaya al-Baritaniyya: al-Qarn al-‘Ishrin [Kuwait in the Shadow of

the British Protectorate: The 20th Century] (Kuwait: printed by author, 2006), pp. 63, 445, 461–70.

Abu Hakima, The Modern History of Kuwait, p. 353; Center for Research and Studies on Kuwait

(CRSK), al-Kuwayt: Wujudan wa-Hududan; al-Haqa’iq al-Mawdu‘iyya wa-l-Iddi‘a’at al-‘Iraqiyya [Kuwait: Existence and Borders; Objective Facts and Iraqi Claims], third edition (Kuwait City:

CRSK, 1997), p.13; and, Abdul-Reda Assiri, Kuwait’s Foreign Policy: City-State in World Politics (Boulder, CO: Westview, 1990), p. 26.

13. Al-Dekhayel, Kuwait: Oil, State and Political Legitimation, p. 24; Agwani, Politics in the Gulf, p. 111; Tanahi, Petroleum and Kuwait’s Political Relations with Neighboring States, p. 93.

14. Tanahi, Petroleum and Kuwait’s Political Relations with Neighboring States, p. 92; Abdul-Reda

Assiri, al-Nizam al-Siyasi fi al-Kuwayt: Mabadi’ wa-Mumarasat [The Political System in Kuwait: Principles

and Practices] (Kuwait City: printed by author, 1994), p. 104; Agwani, Politics in the Gulf, p. 111.

15. Michael McKinnon, al-Ta‘awun min ajl al-Tanmiya: al-Sunduq al-Kuwayti fi al-‘Alam al-Nami [Cooperation for Development: The Kuwait Fund in the Developing World] (London: I.B. Tauris,

1997), p. 25. Also published in English as Friends in Need: The Kuwait Fund in the Developing World.

16. KFAED, “Loans for Arab Countries, 2009,” p. 2; McKinnon, Cooperation for Development, p. 25.

6 MIDDLE EAST JOURNAL

easy credit.17

The Kuwaiti government also has used KFAED as a diplomatic weapon, through

“dinar diplomacy,” an instrument of soft power used to gain support from Arab and

African countries support for Kuwait’s interests. It deserves to be mentioned that the

subtotal rate of the Kuwaiti foreign aid was ten percent of the GNP,18 and the fund’s initial capital amounted to KWD (Kuwaiti dinars) 50 million.

Although it is funded by the government, KFAED has its own legal regulations

and independent monetary and administrative statutes. The rules governing KFAED’s work stipulated its legal status and financial and administrative autonomy. Currently,

the fund operates under the supervision of Kuwait’s prime minister. The leadership of

the KFAED management board is delegated to the minister of foreign affairs. Oversight

of the fund itself is the responsibility of a director general appointed by sovereign

decree on a recommendation of the management board. As far as the repayment plans

of some of these loans, they were extended to 24 years with an interest rate that never

passed four percent.19

KFAED’s creation shortly following national independence was a clear statement

of Kuwait’s commitment to provide aid and support to developing countries. It

established Kuwait as a leader in facilitating cooperation, solidarity, and mutual assistance

among neighboring countries. Newly independent, developing African countries

needed aid to establish and maintain economic, social, and political stability. Accordingly,

along the framework established bye Organization of African Unity (OAU),

Kuwait developed a charter to equally recognize all states in Africa, to respect each of

their sovereignty, to not interfere in their internal affairs, and help resolve any conflicts

among them peacefully through negotiation, mediation, and mutual agreement based

on international arbitration. Kuwait also supported nonaligned countries, international

organizations, and liberation movements in Africa. The convergence of interests facilitated

Kuwaiti-African cooperation, which has become a vital issue for both sides.20

It should be noted that the fund’s role was no less important than that of the World

Bank, and probably more transparent, as stated by Robert McNamara, president of the

World Bank from 1981 to 1986. He admitted that KFAED’s administration was morally

superior to that of the World Bank and praised its understanding and flexible policy

towards borrowing countries.21

17. McKinnon, Cooperation for Development, p. 61; KFAED, al-Qanun wa-l-Nizam al-Asasi, Qanun Raqm 35 li-‘Am 1961 [Law and Basic Information, Law No. 35 of 1961] (Law No. 35, 1961), Articles 1–3.

18. CRSK, Sahib al-Sumu al-Shaykh Jabir al-Ahmad al-Jabir al-Sabah: Masirat Watan [His Highness

Shaykh Jabir al-Ahmad al-Jabir Al Sabah: March of a Nation] (Kuwait City: CRSK, 2004), pp. 39,

100, 162; Muhammad ‘Umar al-Bashir argues that KFAED is the most successful institution in terms of

responding to the requirements of the Arab nations and developing countries seeking financial and logistic

aid. Muhammad ‘Umar al-Bashir, al-‘Alaqat al-‘Arabiyya al-Ifriqiyya [Arab-African Relations] (Khartoum:

Institute of African and Asian Studies,1984),p.169; McKinnon, Cooperation for Development, p. 29.

19. KFAED, Law No. 35, 1961, Articles 1–3; CRSK, His Highness Shaykh Jabir, pp. 71, 103,

352; KFAED, Loans for Arab Countries, 2009, p. 2; Assiri, Kuwait’s Foreign Policy, p. 26; McKinnon,

Cooperation for Development, pp. 25, 29.

20. Nasir al-Din al-Na’i Adam, “Dawr Ru’us al-Amwal al-‘Arabiyya fi al-Tanmiya al-Iqtisadiyya

fi Ifriqiya” [“The Role of Arab Capitalists in the Economic Development of Africa”], (PhD

dissertation, Cairo University, 2003).

21. Robert McNamara, forward to McKinnon, Friends in Need, pp. 7–9.

THE KUWAIT FUND IN AFRICA, 1961–2010 7

KFAED’s Operations in Africa

KFAED’s early activities were limited to other Arab countries. However, Kuwait’s

government quickly recognized its importance and potential impact on foreign affairs.

Accordingly, the government progressively extended the fund’s activities to African

countries, competing with the increasing influence of Israel after the 1967 Arab-Israeli

War. Kuwait’s involvement in Africa in the 1960s and 1970s, which was still limited

and weak among African states that remained under colonial rule, received a new impetus

to mobilize its foreign policy and financial resources to support independence

movements in Africa and to condemn the apartheid system in South Africa. This policy

also benefited Arab causes, especially that of the Palestinians, by gaining the sympathy

of African countries on a number of vital concerns.22 At the same time, this strategy had

a financial counterpart. Just two years after KFAED’s creation, its capital was doubled

from KWD 50 million to KWD 100 million, and reached KWD 200 million in 1966.23

However, Kuwait’s foreign policy of generous lending was constantly threatened by regional

instability. During the 1970s, Kuwaiti-Iraqi relations deteriorated after repeated

Iraqi provocations. In 1973, Iraq set up a military outpost at the Samita border crossing,

penetrated many kilometers inside Kuwait’s territory, and demanded a 99-year concession

of the two Kuwaiti islands of Warba and Bubiyan.24

The October 1973 Arab-Israeli War was followed by the Sixth Arab Summit at

Algiers in November 1973, which called for stronger financial support to African countries

and forbade any kind of aid to racist governments in South Africa and Rhodesia.

Kuwait played an important part at this summit in consolidating Arab-African relationships,

which confirmed the necessity of developing economic cooperation with African

countries. Arab petroleum ministers agreed on establishing a pan-Arab fund to provide

loans to African countries weakened by the surge of oil prices following the 1973 war.

Subsequently in 1974, KFAED’s managers decided to adjust the rules governing the

fund and to extend its activities to non-Arab developing countries in Asia, Africa, Latin

America, and the Caribbean with the aim to establish partnerships with these countries.25

22. ‘Abdullah al-‘Anzi and Murdi al-Khalidi, “Tatawwur al-‘Alaqat al-Kuwaytiyya–al-Ifriqiyya

wa-Mawqif al-Duwal al-Ifriqiyya min al-Ihtilal al-‘Iraqi li-l-Kuwayt” [“The Development of

Kuwaiti-African Relations and the Position of African Countries on the Iraqi Occupation of Kuwait”], Majallat al-‘Ulum al-Ijtima‘iyya, Vol. 28, No. 4 (2000), p. 66. From KFAED’s establishment

through 1985, the Kuwaiti government subsidized the fund, and it has been self-financing since 1997.

KFAED, Loans for Arab Countries, 2009, p. 2.

23. KFAED, “Loans for Arab Countries, 2009,” p. 3; KFAED, “KF Contributions over the Islamic

World;” Muhammad Wafiq al-Khuja, “Dirasat al-Mardud al-Siyasi li-l-Musa‘adat al-Kharijiyya

al-Kuwaytiyya” [“A Study of the Political Returns of Kuwaiti Foreign Aid”], Jaridat al-Iqitsad

wa-l-A‘mal, No. 163 (1984).

24. CRSK, Kuwait: Existence and Borders, p. 126.

25. KFAED, al-Qanun wa-l-Nizam al-Asasi, Qanun Raqm 25 li-‘Am 1974 [Law and Basic Information,

Law No. 25 of 1974], Articles 1–3. Twenty-nine African states put an end to their relations

with Israel after the 1967 and 1973 wars. Moreover, the Organization of African Unity contributed

to the reinforcement of Arab-African cooperation, and this issue was discussed in many summits.

The March 1977 Arab-African Summit called for more cooperation and coordination. See Mahmud

Khayri ‘Isa, al-‘Alaqat al-‘Arabiyya–al-Ifriqiyya: Dirasa Tahliliyya fi Ab‘adiha al-Mukhtalifa [Arab-

African Relations: A Multidimensional Analytical Study] (Cairo: al-Munazzama al-‘Arabiyya li-l-

Tarbiya wa-l-Thiqafa wa-l-‘Ulum, 1978), pp. 223, 294, 307; Magdi Hammad, Isra’il wa-Ifriqiya: [Continued on next page]

8 MIDDLE EAST JOURNAL

The main objective of KFAED’s policy shift was to gain more international support

for Kuwait, in particular, and the Arab world, in general. Thus, KFAED’s capital

grew to KWD 1 billion and reached KWD 2 billion in 1981/82. In this regard, Michael

McKinnon noted that the Kuwait Fund for Arab Economic Development no longer reflected

its name, since its role goes beyond the Arab world to finance different projects

globally.26 The starting point was with establishment of the aid program to Mali and

Upper Volta (now Burkina Faso) with programs to help the blind for which KFAED

was a major donor. Most of KFAED’s projects in developing countries focused mainly

on economic and social issues, such as agricultural development and the stimulation of

local and international commerce. Other projects developed human capital, mainly the

inclusion of women in workforce. It should be added that KFAED provided aid to Arab

countries regardless of their political orientation. It supported both capitalist countries,

such as Jordan, Morocco, and Lebanon, as well as socialist countries like South Yemen,

Algeria, and Syria. Furthermore, KFAED did not impose any terms or preconditions

that gave primacy to Kuwaiti or Arab products and services.27

KFAED’s activities range from transportation and communication to agriculture,

energy, water supply, and sanitation. In addition, KFAED also offers loans with relatively

minimal requirements, depending on the specifics of an economic situation in

each borrowing country. For instance, it granted to almost all borrowing countries a 22-

year long-term loan with a grace period of four years and interest rates as low as 3–5%.

This kind of loan represented 45% of the amount of each loans.28

KFAED’s policies of providing financial support to developing countries reflect

Kuwait’s commitment to reduce human suffering and to improve socioeconomic conditions

throughout the world. KFAED did not even stop granting loans after Kuwait’s occupation

by Iraqi forces on August 2, 1990. During the occupation period, KFAED signed

11 new agreements to finance development projects in various countries, worth a total

amount of KWD 116.8 million. Three of these agreements were with Arab countries,

three with non-Arab African countries, and two with non-Arab Asian states. In addition,

KFAED provided assistance to Egyptian and Syrian citizens, who were compelled to

leave Kuwait during the Iraqi occupation.29 This move helped to improve Kuwait’s eco- [Continued from previous page]

Dirasa fi Idarat al-Sira‘ al-Duwali [Israel and Africa: A Study in International Conflict

Management],(Beirut: Dar al-Mustaqbal al-‘Arabi, 1986), p. 56; ‘Anzi and Khalidi, “The Development

of Kuwaiti-African Relations,” p. 67; and, Muhabbat Imam al-Sharabi, al-Wujud al-Isra’ili wa-l-‘Arabi fi Ifriqiya: Dirasa Iqtisadiyya Siyasiyya [The Israeli and Arab Presence in Africa: A

Political-Economic Study], (Cairo: Dar El Maref, 1982), pp. 49, 193, 262.

26. McKinnon, Cooperation for Development. p. 60.

27. Khuja, “A Study of the Political Returns of Kuwaiti Foreign Aid,” p. 60; KFAED, “al-Qurud wa-l-

Minah wa-Musa‘adat al-Fanniyya al-Muqaddama li-l-Duwal al-‘Arabiyya min 1 Yanayir 1962 hatta 31

Uktubir 2009” [“Loans, Donations, and Technical Assistance Grants to Arab Countries, January 1, 1962–

October 31, 2009”] (“Loans to Arab Countries, 1962–2009”]. pp. 5–61.

28. KFAED, “Loans to Arab Countries, 1962–2009,” pp. 2–3.

29. The Arab countries sent aid were Egypt, Syria, Morocco, and Oman. The non-Arab Asian

countries were Pakistan and China, and the non-Arab African countries were Guinea, Niger, and

Uganda. KFAED, “Loans to Arab Countries, 1962–2009,” pp. 3, 28, 48; KFAED, “al-Qurud wa-l-

Minah wa-l-Musa‘adat al-Fanniyya al-Muqaddama li-Duwal Wast wa-Janub wa-Sharq Ifriqiya hatta

31 Disambir 2009” [“Loans, Donations, and Technical Assistance Grants to Central, Southern, and

THE KUWAIT FUND IN AFRICA, 1961–2010 9

nomic, political, and social relationships with Egypt and Syria during the crisis.

Apart from loans, KFAED also offers technical grants to execute prospective studies

and research, to increase the opportunities for building productive capabilities, to provide

counseling services in financial and economic matters, and to improve institutional capacity.

The total number of technical assistance grants provided by KFAED from 1961 to 2010

reached 169, with a total sum approximating US $1.3 billion up to the end of June 2010.

Full lists of grants and loans given by KFAED along with total financial amounts are attached

to the present report. In addition, 30 African and Asian countries received technical

assistance from KFAED.30 These numbers prove the commitment of Kuwait’s government

in providing financial and technical support to developing countries, especially in Africa,

with particular attention paid to creation and maintenance of effective infrastructures.

AFRICAN COUNTRIES COVERED BY KFAED ACTIVITIES The following section outlines the examples of African — both Arab and non-

Arab — countries that have benefited from the aid granted by KFAED. The fund provided

aid in the form of grants and loans aimed at supporting economic development.

Kingdom of Morocco

Morocco is an Arab state with strong historical ties to Kuwait. Morocco and Kuwait

share a common religion and language, and are both members in the Arab League.

King Muhammad V of Morocco’s visit to Kuwait in January 1960 was the cornerstone

of the Kuwaiti-Moroccan relationship. Therefore, it is not surprising that the first projects

initiated by KFAED to assist Morocco occurred at an early date. On May 29, 1966,

KFAED provided two loans to finance economic projects related to Morocco’s agricultural

reform: KWD 5.9 million were allocated to finance the Tassaout agricultural project,

and another KWD 2.3 million was granted to a project aimed at strengthening the Western Bani Musa perimeter (Tadla).31 The subsequent success of these two projects [Continued from previous page] East Africa through December 31, 2009”] (“Loans to Africa, 2009”), p. 5; KFAED, “al-Qurud wal-

Minah wa-l-Musa‘adat al-Fanniyya al-Muqaddama li-Duwal Gharb Ifriqiya, 1 Yanayir 1962–31

Uktubir 2009” [“Loans, Donations, and Technical Assistance Grants to West African Countries,

January 1, 1962– October 31, 2009”] (“Loans to West Africa, 1962–2009”), pp. 3, 7, 27, 45; McKinnon,

Cooperation for Development. p. 173; Muhammad ‘Ali al-Farra’, al-Tanmiya al-Iqtisadiyya fi Dawlat al-Kuwayt: Dirasa Jughrafiyya Tahliliyya [Economic Development in the State of Kuwait:

An Analytical Geographic Study] (Kuwait City: Kuwait University, 1974), p. 359; ‘Anzi and

Khalidi, “The Development of Kuwaiti-African Relations,” p. 75.

30.KFAED, “Loans for Arab Countries until 30 September 2009,” p. 2; KFAED, “KF Contribution

over the Islamic World,” annexes 1–3.

31. King Muhammad V of Morocco visited Kuwait in January 1960 and met with its ruler Shaykh

‘Abdullah al-Salim. This visit consolidated bilateral relations and Morocco was among the first states

that recognized Kuwait’s independence and supported its membership in the Arab League. Later, Morocco

was among the first Arab states to condemn Iraqi aggression. State of Kuwait, Foreign Ministry,

Department of Africa (K-FM-A), “al-‘Alaqat al-Kuwaytiyya al-Maghribiyya” [“Kuwaiti-Moroccan

Relations”] (2010); Embassy of the Kingdom of Morocco in Kuwait (EKM-K), “al-‘Alaqat al-Kuwaytiyya

al-Maghribiyya” [“Moroccan-Kuwaiti Relations”] (n.d.), p. 1.

10 MIDDLE EAST JOURNAL

inspired more agreements between Morocco and Kuwait, including the establishment

of a sugar production factory in 1972.32 KFAED granted a total of 35 loans to Morocco,

totaling almost KWD 345 million as of June 2010.

The large number and amount of loans granted by KFAED proves the quality

of the Kuwaiti-Moroccan relationship. Despite the Iraqi occupation at the time, Kuwait

granted Morocco a loan of KWD 5.7 million to finance the Wahda dam project

on November 23, 1990.33 Moreover, KFAED provided technical assistance grants to

two projects totaling KWD 1.15 million in 2001 and 2006.34 Furthermore, KFAED

encouraged Kuwaiti companies to establish themselves in the Moroccan market, thus

contributing to the country’s economic development. Today, the presence and investment

of companies from the Kuwaiti private sector in the Moroccan economy is on a

large scale, which benefits from support from both sides. The fields of investment are

various, ranging from agriculture, commerce, maritime transportation, infrastructure,

to water supply and electric power transmission.35 Furthermore, numerous institutions

were created to facilitate and enhance bilateral relationships between Morocco and

Kuwait. The most important of them is the Kuwaiti-Moroccan High Joint Commission

founded in 2001 and headed by foreign ministers of the two countries.36

United Republic of Tanzania

Historically, the relationship between Kuwait and Tanzania was based on the participation

of Kuwaiti traders in Arab commerce with Tanganyika and Zanzibar, the two

regions that united to form the United Republic of Tanzania in 1964. Kuwaiti trading

sailboats regularly traveled to East African ports until the discovery of oil, which, along

with the development of the artificial pearl industry and modern seafaring, reduced the

presence of Kuwaiti sailboats in those regions. However, Kuwait’s relationships with

East Africa were reinforced through the active role of KFAED, which provided a loan

of KWD 4.3 million for the extension of Tanzania’s Monza textile factory in 1975.

To consolidate the partnership with Tanzania, KFAED granted 11 loans from 1975 to

2000, totaling KWD 50.9 million. In addition, KFAED also provided technical assistance

for economic and social development equaling KWD 375,374 between 1997 and

2002.37 In 1997, technical assistance and financial support helped with improving the

Zanzibar Port. In 2002, the Fund financed the costs of technical and economic feasibility

studies of the Mtwara–Mbamba Motorway project.38

32. K-FM-A, “Kuwaiti-Moroccan Relations;” KFAED, Loans to Arab Countries, 1962–2009, p.

53; McKinnon, Cooperation for Development, p. 173.

33. KFAED, “Loans to Arab Countries, 1962–2009,” p. 53.

34. Emir Sabah al-Ahmad’s visits to Morocco in 2006, 2008, and 2010, played a key role in the

development of Moroccan-Kuwaiti bilateral relations and the growth of Kuwaiti investments in Morocco.

K-FM-A, “Kuwaiti-Moroccan Relations,” p. 1; EKM-K, “Moroccan-Kuwaiti Relations,” p. 1.

35. KFAED, “Loans to Arab Countries, 1962– 2009,” p. 53.

36. K-FM-A, “Kuwaiti-Moroccan Relations,” p. 1.

37. K-FM-A, “al-‘Alaqat al-Iqtisadiyya bayn al-Kuwayt wa-Jumhuriyyat Tanzaniya al-Ittihadiyya” [“Economic Relations between Kuwait and the United Republic of Tanzania”]; KFAED, “Loans to

Africa, 2009,” p. 20.

38. For further information on Arab relations with East Africa, see Turki, Zanzibar and Its African

Surroundings, p. 83; and, Turki, The Arabs in East Africa, p. 153.

THE KUWAIT FUND IN AFRICA, 1961–2010 11

Republic of Senegal

While the relationships between Kuwait and West African countries since the

1970s, the establishment and development of these relationships are closely related

to KFAED’s efforts. KFAED granted Senegal financial support for various projects,

which, in turn, strengthened bilateral ties between it and Kuwait. In particular, Senegal

supported Kuwait on many political issues.39 KFAED’s efforts in Senegal were

sustained by the enlargement of its aid to non-Arab countries in 1974. Even before

this shift in foreign aid policy, Kuwait and Senegal had concluded an economic cooperation

agreement in 1972 that entailed cooperation in the fields of culture, air

transport, and commerce.40

KFAED granted its first significant loan, of KWD 1.2 million, to Senegal on

December 30, 1976, to finance the development of livestock in the country’s eastern

interior. In addition, KFAED supported the development of the Senegal River Basin

Project in 1982, aimed at reducing the impact of draught in the region. Kuwait’s

contribution to this project amounted to KWD 10.75 million.41 Other funded projects

were devoted to improvements in navigation on Senegal River and building of hydroelectric

energy plants. KFAED also contributed to road pavement projects. Overall,

from 1967 to 2008, KFAED granted Senegal financial support for 26 projects amounting

to over KWD 90 million. During the same period, KFAED awarded two other

grants to Senegal worth almost KWD 600,000 within the framework of technical assistance

provided to Muslim-majority countries. In 1983, the government of Kuwait

offered Senegal another KFAED-administered grant of KWD 1.5 million to establish

an emergency program to help rural communities.42 These grants facilitated the development

of mutually beneficial political relationships between Kuwait and Senegal. In

return, Senegal condemned Iraqi aggression against Kuwait on August 2, 1990, and

gave its support to Kuwait during the Iraqi invasion.43

39. K-FM-A, “Ittifaqiyyat Ta‘awun ma‘ al-Sinighal” [“Cooperation Agreements with Senegal”] (2010), p. 1; K-FM-A, “al-‘Alaqat al-Iqtisadiyya bayn al-Kuwayt wa-Jumhuriyyat al-Sinighal” [“Economic Relations between Kuwait and the Republic of Senegal”] (n.d.).

40. K-FM-A, “Taqrir ‘an Iqtisad Jumhuriyyat al-Sinighal” [“A Report on the Economy of the

Republic of Senegal”], (July 7, 2009).

41. K-FM-A, “A Report on the Economy of the Republic of Senegal;” K-FM-A, “Economic Relations

between Kuwait and the Republic of Senegal.” 42. KFAED, “Loansto West Africa, 1962 –2009, p. 17; KFAED, KF Contributions over the Islamic

World,” p. 3. Since 1981, Kuwait-Senegalese relations have developed and extended to various economic,

social, and cultural fields and the Direct Aid Association of the African Muslims Association

had an active role in this. The emir of Kuwait, Shaykh Jabir al-Ahmad (r. 1977–2006) visited Senegal

in 1977 and attended the Sixth Islamic Summit of the OIC in Dakar. On the other hand, the president

of Senegal, Abdoulaye Wade, visited Kuwait in 2005 and 2006. In 2009, the prime minister of Kuwait,

Shaykh Nasir Muhammad al-Ahmad visited Senegal. K-FM-A, “Cooperation Agreements with

Senegal;” K-FM-A, “Economic Relations between Kuwait and the Republic of Senegal.” 43. K-FM-A, “A Report on the Economy of the Republic of Senegal,” pp. 4, 6. See Fawzi Jad

al-Karim, “Wad: al-Sinighal Tas‘a li-Istiqtab al-Istithmarat al-Kuwaytiyya wa-l-Sunduq al-Kuwayti

Sayanjuz Ba‘d al-Mashari‘” [“Wade: Senegal Is Seeking to Attract Kuwaiti Investment, and the Kuwaiti

Fund Will Undertake Some Projects”] Annahar (Kuwait), November 11, 2010, p. 12.

12 MIDDLE EAST JOURNAL

Republic of Mozambique

Mozambique is located in the far southeast of Africa, bordering the Indian Ocean.

Mozambique gained its independence from Portugal on June 25, 1975. Today, it is considered

amongst the poorest nations in the world. The country endured a 16-year civil

war, which officially ended in 1992.44 Kuwait’s relationship with Mozambique is rather

limited. The first economic contacts were initiated in February 1982, when the government of Mozambique signed an agreement with KFAED to borrow KWD 4.5 million to

finance improvement of roads throughout the country. This loan was the starting point

for other projects financed by KFAED from 1982 to 2006, totaling more than KWD

24.1 million granted in loans to Mozambique. During the same period, Mozambique

benefited from five technical assistance grants with a total amount of KWD 576,068.45

THE IMPACT OF KFAED’S ACTIVITIES What are the political effects of KFAED’s activity on the African continent? The

answer to this question is multifaceted and delicate. This article cannot discuss all effects,

but will focus on political and economic benefits.

First, the role of KFAED aid on the international stage is acknowledged by the United

Nations and the World Bank. To note Kuwait’s unparalleled efforts, it should be mentioned

that the international economic aid provided by Kuwait represented more than 11% of the

country’s GNP in 1974 and 1979. Moreover, the total amount of KFAED aid was 30 times

greater relative to Kuwait’s GNP than the aid granted by industrial powers. In 1979 and 1980,

Kuwait provided the equivalent of 4.1% and 3.8% respectively of its GNP to grant loans to

developing countries. In 1980 alone, KFAED allocated US $267.8 million to fund diverse

projects. This amount represents 13.9% of the aid provided by all Arab states and OPEC.46

Second, in comparison to other international aid efforts, these numbers are fairly

high. KFAED’s aid represents a much larger proportion than the one percent of GNP

that is recommended by the United Nations. Moreover, it should be noted that while

more developed countries fund aid from their current income, but Kuwait, which is considered

a developing country, cuts its aid from its nonrenewable national wealth. Thus,

KFAED’s foreign aid efforts are truly focused on facilitating economic development in

the region and assisting other developing countries to achieve prosperity and stability.

Third, Kuwait’s aid policy, also known as dinar diplomacy, has proved to be a

double-edged sword. On one hand, the emphasis on helping developing regions is a

source of stress for Kuwait due to the fact that some borrowing countries are unwilling

or unable to repay their debt. On the other hand, KFAED serves the interests of the state

and the people of Kuwait, by gaining international prestige. Kuwait’s foreign aid policy

enables Kuwaiti investors to operate in the borrowing countries that are interested in 44. K-FM-A, “‘Alaqat al-Kuwayt bi-Jumhuriyyat Muzambiq” [“Kuwait’s Relations with the Republic

of Mozambique;” KFAED, “Loans to Africa, 2009,” p. 44.

45. KFAED, “Loans to Africa, 2009,” p. 45; Khuja, “A Study of the Political Returns of Kuwaiti

Foreign Aid,” p. 60.

46. In 1979, the US assisted developing countries with the equivalent of 0.3% of its GNP, and with

0.27% in 1980. “al-Duwal al-Mutaqaddima: Ma‘unat Ghayr-Kafiya li-l-Buldan al-Namiya” [“Developed

Countries: Aid to Developing Countries Is Insufficient”], al-Iqtisadi al-Kuwayti, November 1981, p. 70.

THE KUWAIT FUND IN AFRICA, 1961–2010 13

getting more Kuwaiti capital. In addition, KFAED creates new opportunities for the

Kuwaiti private sector through the projects it funds. The proportion of Kuwaiti consulting

firms, contractors, and industrialists in implementing borrowing countries’ projects

is estimated at seven percent of the total value of the projects.47 In other words, Kuwaiti

companies take active part in making funded projects truly effective and workable.

CONCLUSION Kuwait is a small country, which strives to gain international prestige and improve

its reputation through involvement in development projects throughout the world. The discovery

of oil in Kuwait increased its national revenues, and gave the country the opportunity

to provide substantial financial aid to developing countries in Asia and Africa. There is

no doubt that the Kuwait Fund for Arab Economic Development (KFAED) contributed to

elevated Kuwait’s prestige. Moreover, the fund extended its activities from a strictly Arab

sphere to non-Arab countries. As a result, the benefiting countries showed, on their part,

support for Kuwait during international crises such as the 1990 Iraqi invasion.

KFAED is thus a cornerstone in establishing a substantial developmental institution

in the Arab World. Being based on the cultural and historical ties that bind Gulf

and other Arab countries, Kuwait provides financial aid to Arab countries. Needless to

say, the KFAED is the most effective mean to enhance the foreign policy of Kuwait

and the best ambassador to Kuwait on the international level. Besides, the fund offers a

civilized way to provide assistance and support. Furthermore, it plays an important part

in enforcing Kuwait’s security, integrity, and independence. KFAED has helped Kuwait

gain allies and supply them with the means of strength necessary to deter enemies. In

this respect, KFAED is an effective diplomatic instrument as it contributes to development

efforts in many regions throughout the world. It is not surprising then that the

KFAED’s management was transferred from ministry of finance to ministry of foreign

affairs, and gradually became a self-financing institution.

Through KFAED, Kuwait strengthened its influence on the African continent.

Many countries in Africa and Asia are grateful to Kuwait, whose support continued

through the Iraqi invasion in August of 1990. However, while the scope of KFAED’s activities is great, an objective assessment is still required, and there is much need for

improvement in some areas. Nevertheless, it would be unreasonable to ignore the fact

that KFAED effectively serves Kuwait’s foreign policy objectives.

KFAED has contributed and continues to contribute to development in Africa by establishing

and funding diverse projects covering various aspects of economic life, including

infrastructure, electric power production, agricultural projects, and technical assistance. The

projects initiated by KFAED have enhanced social development and created job opportunities

for many people in developing countries. Moreover, KFAED strengthens Arab-Arab and

Arab-African relationships. Kuwait’s foreign aid policy participates in developing the economies

of Morocco, Tanzania, Senegal, and Mozambique, improving relations with them.

Furthermore, KFAED offered both public and private Kuwaiti companies precious valuable

investment opportunities in Africa. KFAED’s efforts give a new impetus to Kuwaiti-African

relationships and establish a strong Kuwaiti presence on the African continent. 47. KFAED, “Loans to Arab Countries, 1962–2009,” p. 3.

14 MIDDLE EAST JOURNAL

APPENDIX: TABLES Table I: KFAED, by the numbers, up to July 1, 2010

Loans/Grants Receiving Countries

Total KFAED loans 779 102

Total KFAED-administered grants 178 89

• Technical assistance grants 39 30

• Kuwait government grants 41 25

Table II: KFAED Loans to Arab African countries, up to July 1, 2010

Country KFAED loans received Total value (USD millions)

Morocco 35 1,181.8

Egypt 33 1,781.2

Tunisia 31 474.2

Sudan 21 518.1

Mauritania 14 225.5

Algeria 4 74.4

Somalia 4 102.2

Table III: KFAED Loans to non-Arab African countries, up to July 1, 2010 Country KFAED loans received Total value (USD millions)

Senegal 26 307.3

Burkina Faso 14 159.3

Guinea 12 178.6

Mali 11 153.4

Benin 10 83.7

The Gambia 9 77.5

Mozambique 9 82.1

Niger 9 69.0

Uganda 6 37.7

Cameroon 5 58.1

Guinea-Bissau 5 26.4

Sierra Leone 5 46.1 Togo 5 53.8

Chad 3 24.8

Gabon 2 25.5

THE KUWAIT FUND IN AFRICA, 1961–2010 15

Table IV: Donations and Technical Assistance Grants Provided by KFAED

to non-Arab African countries, up to July 1, 2010

Country Number of loans/grants Total value (USD thousands)

Niger 10 3,954.1

Mali 4 2,359.1

The Gambia 3 1,479.7

Mozambique 3 1,958.6

Guinea 2 1,076.5

Senegal 2 1,979.0

Togo 2 623.4

Burkina Faso 1 1,020.0

Chad 1 50.6

Gabon 1 459.0

Guinea-Bissau 1 322.1

Uganda 1 659.3 48

Note: All data on tables taken from KFAED, “KF Contributions over the Islamic World.”