01 | THE HIGHLIGHTS – PRIVATE SECTOR
PRIVATE SECTOR
Powerhouse Private Sector OPEC Fund celebrates 25th anniversary of working in and with the sector
with a rise in interest rates, soaring inflation and currency fluctuations and the OPEC Fund Private Sector window works closely with its partners to navigate this dynamic landscape. The private sector is also the driving force behind global trade — and so it was a logical next step for the OPEC Fund to launch a trade finance window in 2006. This has been another huge success, providing economies with essential imports while facilitating crucial exports. Trade is recognized as an engine of growth and by end-2024 the OPEC Fund had provided over 11,000 unfunded guaran- tees globally for over US$12 billion in trade finance. The 25th anniversary was also a welcome opportunity to renew and deepen existing partnerships as well as forging new alliances. At an OPEC Fund-hosted roundtable Vice President, Private Sector Tareq Alnassar was joined by Marco Arcelli, CEO, ACWA Power; Gabriel Azevedo, Chief Strategy Officer, IDB Invest; Hela Cheikhrouhou, Vice President, Middle East, Central Asia, Türkiye, Afghanistan and Pakistan, International Finance Corporation (IFC); Suzanne Gaboury, Director General, Private Sector Oper- ations, Asian Development Bank (ADB); Sanjeev Gupta, Board Member and Executive Director Financial Services, Africa Finance Corporation (AFC); Saif Malik, CEO for UK and Regional Head of Client Coverage for the UK and Türkiye, Standard Chartered Bank; and Admassu Tadesse, Group President and Managing Director, Trade and Development Bank (TDB).
Late June 2024 marked a quarter century since the start of the OPEC Fund’s private sector operations. Initially focused on the public sector, the development finance institution launched its first private sector operations in 1999. Today they account for 30 percent of total commit- ments, supporting the delivery of the OPEC Fund’s devel- opment mandate. The OPEC Fund approach aims to maximize development impact by providing comprehensive and complemen- tary support. While the public sector traditionally takes the lead in building the infrastructure for a successful economy, it is the private sector that drives growth. Both are indispensable for sound development. Starting with an initial budget of US$250 million for a five-year period, the OPEC Fund’s private sector engage- ment has grown dynamically in volume and number of operations over the years. To date, the OPEC Fund Private Sector has committed more than US$10 billion to over 600 transactions across multiple sectors in more than 70 countries worldwide. Financing solutions need to be adaptable and innovative to serve the private sector’s needs. There is a focus on sectors closely aligned with the OPEC Fund’s mandate and delivery of the Sustainable Development Goals. This includes the financial sector, infrastructure and agribusi- ness, among others. The business landscape changes frequently and has shifted substantially in the recent past
Collaborate for impact PRIVATE SECTOR 25 YEARS
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