The OPEC Fund for International Development’s Governing Board has dedicated US$1 billion to fund COVID-19 impact and recovery efforts in developing countries. The allocation will be deployed in the form of OPEC Fund public, private and trade finance loans.

The OPEC Fund is a development finance institution established by the member states of OPEC in 1976. The OPEC Fund works in cooperation with developing country partners and the international donor community to stimulate economic growth and alleviate poverty in all disadvantaged regions of the world. It does this by providing financing to build essential infrastructure, strengthen social services and promote productivity, competitiveness and trade. The OPEC Fund's work is people-centered, focusing on projects that meet basic needs – such as food, energy, clean water and sanitation, healthcare and education.

At the 171st virtual Governing Board session, OPEC Fund Director-General Dr Abdulhamid Alkhalifa said: “We recognize that many of our partners are refocusing efforts and resources to contain and mitigate the impact of COVID-19. We are committed to supporting them to do precisely this and the Board has endorsed a robust fast-track approval process as part of our emergency response initiative.”

The OPEC Fund is joining global efforts to address the socio-economic challenges the world is now facing. The organization will work closely with the financial institutions of the Arab Coordination Group, with multilateral development banks, as well as with specialized agencies of the United Nations, to provide collective, well-coordinated and impactful development financing where it is needed most.

In developing countries the impact of Covid-19 spread will have a major negative effect on the nation’s economy .The overall domestic consumer demand will have a negative impact on production and employment. The drop in consumer demand may have a lower effect in manufacturing, where companies could, if they have access to credit, build up stocks of finished goods rather than reduce production and lay off staff.  However, the effects on the small-scale services sector are likely to be dramatic.