Strategic Partnership Between AIIB and Arab Fund to Advance Sustainable Infrastructure Development

Introduction

The Asian Infrastructure Investment Bank (AIIB) and the Arab Fund for Economic and Social Development (Arab Fund) have formalized a strategic partnership by signing a memorandum of understanding (MoU). This agreement aims to deepen cooperation and accelerate the delivery of sustainable infrastructure projects across their shared priority regions, directly supporting the achievement of the United Nations Sustainable Development Goals (SDGs).

Signing Ceremony

The MoU signing ceremony was held on the sidelines of the Fourth International Conference on Financing for Development (FfD4) in Seville, Spain. The event was officiated by:

• Jin Liqun, President of AIIB
• Bader M. Alsaad, Chairman and Director General of the Arab Fund

Senior representatives from both institutions were also present to witness the agreement.

Objectives and Scope of the Partnership

The partnership establishes a comprehensive framework for collaboration between AIIB and the Arab Fund, focusing on:

1. Sovereign and non-sovereign co-financing
2. Joint project preparation
3. Strategic priorities including:
   • Climate resilience (SDG 13: Climate Action)
   • Cross-border connectivity (SDG 9: Industry, Innovation, and Infrastructure)
   • Digital infrastructure (SDG 9)
   • Sustainable urban development (SDG 11: Sustainable Cities and Communities)

Statements from Leadership

President Jin Liqun, AIIB

“Our partnership with the Arab Fund represents a significant milestone in our shared commitment to sustainable development. By combining AIIB’s infrastructure expertise with the Arab Fund’s deep regional knowledge, we can deliver transformative projects that address the most pressing connectivity and climate challenges. Together, we will mobilize greater resources and drive innovation in infrastructure financing for a more sustainable future.”

Bader M. Alsaad, Chairman and Director General, Arab Fund

“This significant partnership with AIIB will enable us to achieve our mission of financing sustainable development across the Arab region, aligning directly with the SDGs. Through this collaboration, we will mobilize vital resources and strengthen our support for strategic infrastructure-related initiatives, ultimately contributing to a more prosperous and sustainable future.”

Commitment to Sustainable Development Goals (SDGs)

This partnership highlights both institutions’ dedication to:

• Deepening collaboration with regional development partners
• Advancing innovative, demand-driven approaches to financing sustainable infrastructure
• Supporting projects that contribute to multiple SDGs, including:
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 11: Sustainable Cities and Communities
• SDG 13: Climate Action
• SDG 17: Partnerships for the Goals

About the Asian Infrastructure Investment Bank (AIIB)

• Multilateral development bank dedicated to financing “infrastructure for tomorrow” with sustainability at its core
• Operations began in 2016
• 110 approved members worldwide
• Capitalized at USD 100 billion
• AAA-rated by major international credit rating agencies
• Collaborates with partners to mobilize capital and invest in infrastructure and productive sectors that foster sustainable economic development and enhance regional connectivity

About the Arab Fund for Economic and Social Development (AFESD)

• Regional financial institution established in 1972 by Arab League member states
• Headquartered in Kuwait
• Provides concessional financing and technical assistance to support infrastructure and development projects across the Arab region
• Hosts the Arab Coordination Group Secretariat, promoting collaboration among Arab development partners and advancing shared regional priorities

1. Sustainable Development Goals (SDGs) Addressed in the Article

1. SDG 9: Industry, Innovation and Infrastructure
   • The article focuses on sustainable infrastructure development, cross-border connectivity, and digital infrastructure, which are central to SDG 9.
2. SDG 11: Sustainable Cities and Communities
   • The mention of sustainable urban development aligns with SDG 11’s aim to make cities inclusive, safe, resilient, and sustainable.
3. SDG 13: Climate Action
   • Climate resilience and addressing climate challenges are key themes, directly related to SDG 13.
4. SDG 17: Partnerships for the Goals
   • The strategic partnership between AIIB and the Arab Fund exemplifies SDG 17’s focus on strengthening global partnerships to support sustainable development.

2. Specific Targets Under the Identified SDGs

1. SDG 9 Targets
   • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure.
   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies.
2. SDG 11 Targets
   • Target 11.3: Enhance inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planning and management.
   • Target 11.b: Increase the number of cities adopting and implementing integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to climate change.
3. SDG 13 Targets
   • Target 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.
   • Target 13.a: Implement the commitment undertaken by developed-country parties to the UNFCCC to mobilize jointly USD 100 billion annually by 2020 to address the needs of developing countries.
4. SDG 17 Targets
   • Target 17.3: Mobilize additional financial resources for developing countries from multiple sources.
   • Target 17.17: Encourage and promote effective public, public-private and civil society partnerships.

3. Indicators Mentioned or Implied in the Article

1. Indicators for SDG 9
   • Proportion of the rural population who live within 2 km of an all-season road (Indicator 9.1.1) – implied through focus on connectivity and infrastructure development.
   • CO2 emission per unit of value added (Indicator 9.4.1) – implied by emphasis on sustainable and climate-resilient infrastructure.
2. Indicators for SDG 11
   • Proportion of urban population living in slums or informal settlements (Indicator 11.1.1) – indirectly relevant to sustainable urban development.
   • Number of cities with a direct participation structure of civil society in urban planning and management (Indicator 11.3.2) – implied by integrated and participatory urban development.
3. Indicators for SDG 13
   • Number of countries with national and local disaster risk reduction strategies (Indicator 13.1.2) – related to climate resilience efforts mentioned.
   • Amount of finance mobilized for climate action (Indicator 13.a.1) – implied through mobilization of resources for climate-related infrastructure.
4. Indicators for SDG 17
   • Amount of United States dollars committed to public-private partnerships (Indicator 17.17.1) – relevant to the strategic partnership and co-financing mentioned.
   • Amount of financial resources mobilized for developing countries (Indicator 17.3.2) – directly linked to resource mobilization efforts.

4. Table of SDGs, Targets, and Indicators

Source: aiib.org