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and ensure that what we can offer evolves accordingly. Our responsibility is not only to provide capital, but also to create
Ultimately, innovation is about creating opportunities that would not arise through standard approaches. Our Digital Transformation Action Plan is an excellent example of how we can deliver by financing the next generation of infrastructure. OFQ : And, thirdly, mobilization. Why is it challenging under current circumstances, while also considering longer-term trends in development finance? KK: There is no shortage of capital, but no single institution can meet global development needs alone – especially in the current geopolitical climate where uncertainty is pushing up the cost of capital and driving down investor appetite. However, it is exactly this kind of situation that increases the value of institutions like the OPEC Fund. Investors often view projects in emerging markets as riskier than they actually are. There is a big gap between perceived risk and actual risk, as shown by the data on default rates and recoveries across these markets. Institutions like ours can help bridge the “perception gap” by improving project preparation, sharing risk and, ultimately, building confidence. OFQ : What matters most when it comes to mobilization? KK: MDBs need to give commercial investors the confidence and comfort to enter into deals. But the bigger picture is more complex, and covers structuring transactions in ways that align risk and return expectations while maintaining strong development outcomes. That means being in the top tier in terms of market expertise, due diligence and risk mitigation. The OPEC Fund has set a good example with our first syndication, connecting a bank from one of our member countries, UAE, to our partner country Paraguay. Looking ahead, I believe our role as a catalyst will become even more important. Success will be measured not by the projects we finance directly, but by the ecosystems we help build and the investments we help unlock for future generations.
opportunities – gathering partners and guiding private investment into markets where it is needed most. We also demonstrate our agility in how we respond to crises and how quickly we implement solutions. The OPEC Fund has taken up this role through programs such as the Small Island Developing States initiative, along with crisis response tools such as the recently announced E-STAR (see p. 14). The latter is a great example of what agility means in practice: responding quickly to emerging challenges, while reinforcing economic resilience.
Photo: Dave Primov/ Shutterstock
OFQ : What gives you the greatest sense of optimism as you look ahead? KK: What gives me optimism is the extraordinary potential I see throughout our partner countries. Despite the challenges facing the global economy,
I continue to see strong ambition, entrepreneurship and innovation
across the markets in which we operate. I also see an OPEC Fund that is well- positioned to support those aspirations. Ultimately, the tools we use will continue to evolve – but our purpose remains constant: creating opportunities, strengthening resilience and improving lives.
OFQ : Innovation is next on your list, but what exactly does it mean for you? KK: Innovation is not about doing something new for its own sake. It is about targeted solutions that achieve impact or deepen markets. Here I would highlight the overall transformation of our Private Sector operations rather than any single tool per se . We have significantly broadened our product offering, scaled our mobilization capabilities, entered new sectors and strengthened our partnerships – from sustainability-linked financing, to local currency lending, to financial institution capital instruments.
Photo: Karol Moraes/Shutterstock
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