Arab Oil Investment Corporation is a multilateral lending institution focused on the energy sector, with the goal of investing $1 billion in decarbonization and related technologies over the next five years, and renaming it the Arab Energy Fund.

Khalid Ali Ruwai, CEO of the Arab Energy Fund, stated that the new strategy highlights our commitment to impact driven solutions, leveraging our deep industry expertise and regional access to move the evolving energy landscape towards a net zero world. Our strategy includes promoting technological progress to improve energy efficiency and drive sustained decarbonization efforts, thereby achieving investment diversification We are expanding our investment scope beyond the core value chain and actively cultivating and shaping the value chain within the region.

This multilateral lending institution is owned by 10 member countries of the Organization of Arab Petroleum Exporting Countries, including Saudi Arabia, United Arab Emirates, Kuwait, Libya, Iraq, Qatar, Algeria, Bahrain, Egypt, and Syria.

It was established in 1975 with the aim of providing financial support for the energy sector to Arab countries. Its investment portfolio increased from $1.2 billion to $1.3 billion, successfully exiting Ashhead Technology, a technologically advanced supplier of underwater solutions, tools, and systems for the construction and maintenance of offshore energy infrastructure. In September, the company announced its highest profit for the first half of the year to date, while its operating revenue increased with rising interest rates.

As of the end of June, the total comprehensive income of the company increased by 87% year-on-year to 108.7 million yuan. After establishing a green bond framework in 2021, the company marks the first green bond issuance by an energy focused financial institution in the Middle East and North Africa region. The five-year benchmark bond denominated in US dollars raised $750 million, of which over $610 million has been allocated to 11 projects in the region. Currently, 18% of its existing $4.5 billion loan portfolio is used to support environmentally and socially responsible projects.Editor/XingWentao