The nature of Saudi foreign aid
Various photographs of King Fahd Bin Abdul Aziz
Various photographs of King Fahd Bin Abdul Aziz
Various photographs of King Fahd Bin Abdul Aziz
The nature of Saudi foreign aid

In a world where aid is so often in the form of interest-bearing loans which have to be spent by the recipient on purchasing goods or services from the donor country, it is not only the scale but the nature of Saudi aid which is noteworthy.

In 1988, the World Bank reported:

"Under pressure of sharply falling oil revenues, uncertainties regarding the future of the oil market and the regional security situation, Saudi Arabian ODA volume declined from a peak of US$ 5.5 billion in 1981 to US$ 2.6 billion in 1985, but recovered to US$ 3.5 billion in 1986. In 1987, it was about US$ 2.9 billion. As a proportion of the Kingdom’s oil revenues, ODA rose from 10% in 1983–5 to 15% in 1986–7, and Saudi Arabia’s ratio of ODA to GNP has remained by far the highest among all donors. Saudi aid is untied, quick-disbursing, and highly concessional, with a grant element of 96% (1986)."

King Fahd bin Abdul Aziz Click to view high resolution version

King Fahd bin Abdul Aziz

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