The UAE and Foreign Policy by Almezaini Khalid S

Author:Almezaini, Khalid S.
Language: eng
Format: epub
Publisher: Taylor & Francis (CAM)

The OPEC Fund for International Development (OFID)

During the Arab-Israeli war in October 1973, Arab oil-producing countries imposed an embargo on oil to Western states that supported Israel. This decision was taken by the Organisation of Arab Petroleum Exporting Countries (OAPEC). As a result, average global oil prices (based on the benchmark price of Arabian light crude) jumped from US$3.01 per barrel in October 1973 to US$11.65 that December, followed by further price increases in 1974 (Hunter 1984: 1). This was advantageous for the Arab oil-producing countries and led to rapid economic development and enhanced military capacity. In contrast, the poorest countries from the Third World were the principal victims of the increase in oil prices and the global economic slowdown. However, it was felt by OPEC members (Algeria, Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, UAE and Venezuela) that other developing nations were more in need of their support, hence they shared the same ‘development problems’ with them. Therefore, in support for their South-South solidarity campaign, OPEC established the OPEC Special Fund in 1976 in order to provide economic assistance to those nations. The name ‘OPEC Special Fund’ was later changed to ‘OPEC Fund for International Development’ (OFID). Arab members of OPEC had already established other multilateral aid institutions before OFID, when the Arab Fund for Economic and Social Development was founded in 1971. It was followed in 1973 by the Arab Bank for Economic Development in Africa, and in 1975 by the IDB, which includes Muslim countries (both Arab and non-Arab).

Table 3.25 IDB operations and activities to end of 2005

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