The AACC is pleased to present a distinguished Arab personality, the Director General of the OPEC Fund for International Development, H.E Mr. Suleiman Jasir Al Herbish. The Chief Executive Officer of this renowned institution in Vienna, has, indeed, a remarkable career and very rich and vast experience in several key establishments in his home country. As an economist with a large number of management skills, he sees the current post, as an extension of his life-time mission to bring about positive changes. Our guest has joined the Saudi Ministry of Petroleum and Mineral Resources in 1962. He attended the Second General Conference of UNCTAD in New Delhi in 1968 as the youngest officially accredited representative. From 1982 until 1990 he was Assistant Deputy Minister. On the 10th of February 1990, he was appointed pursuant to Council of Ministers Resolution as Saudi Arabia's Governor (Deputy Minister's rank) at the Organization of Petroleum Exporting Countries (OPEC). On November 1, 2003, Mr. Al Herbish became the third Director General of the OPEC Fund for International Development in Vienna.
Mr. Al Herbish has a Master degree in Economy, from Trinity University in Texas. He has actively participated in many regional and international conferences and symposia.
In our interview, the Director General of the Fund outlines his vision and the future thrust of the OPEC Fund for International Development. In this exclusive interview, he sheds light on the Fund's mission, its mandate and the various services and activities that make this institution one of the most reputable financial development agencies in the world arena. Indeed, for the last three decades since its inception in 1976 the Fund has been keen to lend a helping hand to the poorer, low-income countries in pursuit of their social and economic advancement. Over the past 30 years the work of the Fund has benefited millions of people in 120 countries. Indeed, this is considered a noble achievement, particularly if one considers that all of these member countries are themselves developing countries.

AACC: How is the OPEC Fund different from other international organizations such as UNIDO, the World Bank, and the Islamic Development Bank or the European Bank?

H.E Mr. Al Herbish: The OPEC Fund for International Development*, established in 1976, is a multilateral development finance institution. It works closely with non-OPEC developing countries to advance their social and economic programs, and to promote cooperation between OPEC Member Countries and other developing countries as an assertion of South-South solidarity. The Fund was conceived at the Conference of the Sovereigns and Heads of State of Member Countries of OPEC, which was held in Algiers, Algeria, in March 1975. Back then, the Conference "reaffirmed the natural solidarity which unites OPEC countries with other developing countries in their struggle to overcome underdevelopment," and called for measures to strengthen cooperation between these countries. Of particular importance was its keenness to lend a helping hand to the poorer, low-income countries in pursuit of their social and economic advancement. The OPEC Fund has devoted considerable resources to assisting the worldwide work of other international institutions which directly benefit developing countries. For example, the Fund is a major contributor to the Amsterdam-based Common Fund for
Commodities (CFC) and had been instrumental in the establishment of the Rome-based International Fund for Agricultural Development (IFAD). Equally, the Fund had earlier in its history made irrevocable transfers, in the name of seven of its Members States, to the Trust Fund of the International Monetary Fund. A key aspect of our drive for efficiency continues to be on the path of cooperation and harmonization with our sister organizations and like-minded international financial institutions. In addition we are actively forging strategic partnership with the national institutions of our beneficiary countries.
OPEC Fund Member Countries are: Algeria, Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and Venezuela.

AACC: As the OPEC Fund celebrates 30 years of its existence, are you planning any special activities?

H.E Mr. Al Herbish: As part of our festivities marking the thirtieth anniversary, the OPEC Fund for International Development has lined up a host of activities, some of which will be organized outside the Headquarters. One of the year's highlights is the Ministerial Meeting in Jeddah, Saudi Arabia, late this year, during which we plan to announce the winners of the first OPEC Fund Scholarship Award and OPEC Fund Award for Excellence. Other noteworthy events include the Fund Arts display held within the Headquarters' premises in March through April, and the Fund Photographic Exhibition in May which will also be on display in Singapore, when the Fund takes part in the annual meetings of the World Bank Group and the International Monetary Fund in September.

AACC:. What preconditions or parameters the Fund requires from the country or organization asking for funding its projects.

H.E Mr. Al Herbish: The Fund does not require any preconditions for granting a loan or assistance. But, it is important for us to establish, as a matter of priority, an economic feasibility for the project under consideration. Therefore, our team of experts, in working closely with the beneficiary country or organization, reviews the initiative and applies a rigorous and analytical system to ensure its compliance with our mandate and the objectives set forth by our founding members.

AACC: What role the Fund plays in the private sector in the developing World?

H.E Mr. Al Herbish: An overriding priority of the Fund over the years has been one of adaptability and relevance. As many new pressing needs unfold in many of the developing countries, the Fund became more vigilant to accommodate them. In fact, the scope and nature of the Fund's core activities have always been needs-based. The feedback from our partner countries also shows how much they appreciate the Fund's flexibility and its readiness to respond to the ever-shifting demands of the development landscapes. The introduction of the Private Sector Facility, officially launched in 1998, is indicative of the Fund's willingness to be more accommodating to rapidly changing needs of beneficiary countries. Although the large majority of developing countries have entrusted the management of their economy to the private sector, they lack access to the necessary capital to foster its growth. The role of the Fund is to provide this capital. As one can imagine, the logistics of setting up a new window like this are quite staggering. So, initially it was a fairly slow process while we got a policy framework in place and took care of all the necessary institution building requirements. In the beginning, we concentrated on the financing of small- and medium-scale enterprises through financial intermediaries, including micro-finance institutions, regional and national development banks, leasing companies and commercial banks. Now that the Facility has picked up the necessary momentum, we have diversified into a much broader range of operations in sectors as varied as pharmaceuticals, telecommunications, textiles, tourism, manufacturing and industry. We are also expanding the range of financing products we offer. Total commitments to date stand at $238 million.

AACC:. How do you classify the Fund? Is it a non-profit organization?

H.E Mr. Al Herbish: The OPEC Fund for International Development is an intergovernmental development finance institution, but is not classified as non-profit as such. The Development Operations of the OPEC Fund are carried out through three main channels. The Public Sector operation is the traditional financing window of the Fund and comprises soft loans for a period of twenty years and a five-year grace period. These loans were meant for project and program financing and for balance of payments support. The loans are given directly to the governments of cooperating countries to support development operations across a wide range of social and economic sectors. Typical activities financed through this window include agricultural development, the provision of basic infrastructure such as roads, energy supplies, and clean water.
The Fund's Private Sector Facility, on the other hand, was in response to growing demand among partner countries for investment in private enterprise, which is widely accepted as the engine of economic growth. A diversity of financing instruments is available, including loans, lines of credit, equity, quasi-equity and leasing. Financing may be given directly to private entities or channeled through intermediaries, such as local financial institutions. The Facility supports projects in a broad variety of sectors, from industry, telecommunications and manufacturing, to health, and urban development.
The OPEC Fund's Grant Program provides much-needed financing for development activities that fall outside the scope of its lending operations. These primarily include small-scale social projects, research and studies and humanitarian causes. The OPEC Fund is committed to assisting, particularly, the poorer, low-income countries and the poorest segments of their societies. By the end of December 2005, 773 grants, worth a total of US$348.6 million had been approved. Of this amount,US$111.5 million was made available as technical assistance; US$52.1 million was extended in emergency relief; US$8.3 million sponsored research and similar activities; US$34.2 million was given to finance projects within the framework of the Fund's HIV/AIDS Special Account; US$20 million went to the Food Aid Special Grant Account; US$19.0 million was approved from the Special Grant Account for Palestine; US$83.6 million covered the subscriptions of 35 least developed countries to the Common Fund for Commodities (CFC) and a voluntary contribution to the CFC's Second Account; US$20 million was extended as a special contribution to the International Fund for Agricultural Development.

AACC: What are the total commitments of the Fund since its inception in 1976?

H.E Mr. Al Herbish: On a cumulative basis, the OPEC Fund has made available more than US$7.4 billion in concessional, untied development financing over the past 30 years, benefiting millions of people, in 120 countries. This financing provided by OPEC Fund Member Countries through our institution complements the resources they make available through several other bilateral and multilateral channels. Working through the Fund and its sister Arab/Islamic institutions, OPEC Fund Member Countries have cumulatively provided more than US$81 billion in development financing. This is a noble achievement, particularly if one considers that all of these Member Countries are themselves developing countries.

AACC:. In the 30 years since the OPEC Fund for International Development came into existence what has been its greatest achievement?

H.E Mr. Al Herbish: The fact that this year we celebrate our thirtieth-birthday testifies to the OPEC Fund's resilience and success. It gives us, also, a feeling of jubilation and pride. Development, mind you, is not about a quick fix or a silver bullet, and it requires a broad-based support to stand the test of time. Our success story is attributed to the unique relationship the Fund enjoys with numerous partners, be that sister organizations or other similar development bodies. As an organization of twelve developing countries, the Fund came to appreciate the economic hardships that some of our beneficiaries have to endure throughout the past years. We can say with confidence that our quest for solidarity and interdependence among developing countries is bearing fruit. The breadth of support, which the Fund continues to enjoy from various government officials, institutions and from individuals and sister-organizations representing all segments of society in Member Countries and beneficiaries, is a significant accomplishment. There is another noteworthy achievement. The Fund has succeeded in its efforts to accumulate a vast stock of expertise and experience in all one hundred and twenty beneficiary countries through years of involvement and investment. These engagements have yielded rich dividends in tens of countries in Asia, Africa, and South America. Our great achievement and fulfilment come from helping pupils in a remote village in Asia or Africa receive decent education; in delivering basic health care to combat diseases; and in building bridges connecting cities or borders.

AACC: How do you see the Fund's relationship with the host country, Austria? And what is your vision for the Fund's future?

H.E Mr. Al Herbish: Let me express, on behalf of the OPEC Fund family, our gratitude to the Federal Republic of Austria and the city of Vienna for their outstanding and gracious hospitality, and for the excellent services they have rendered the Fund all these years. We look forward to continuing this special relationship with our host country and the charming city of Vienna for years to come.
Of course, two and a half years ago when I first joined the Fund, I was confident that this great institution will have a true potential to grow and be able to foster human growth and development. I have a great passion for raising the profile of our institution, and the time to bring it out of its cocoon is, surely, upon us. We need to tell the world how the Fund, for three decades, has been changing lives of millions of people, to the better; how we built innumerable roads, hospitals, schools, industries and infrastructure in tens of countries. Our job, of course, as members of the Fund is to work collectively through team work to make it all happen. I have always been a believer that our human progress hinges on its willingness to respond to the shifting demands of the time. We can not afford to stand still and be left behind. After all, life is about growth, progress and gradual change.
We have the duty to position ourselves as valuable global community member. This is one challenge that we, at OPEC Fund, take very seriously.