The Kuwait Fund for Arab Economic Development (KFAED) is the first institution in the Middle East that took an active role in the international development efforts which was established in December 1961. The Fund extends loans on concessionary term to finance development projects in the developing countries. The Fund also assists countries by providing technical assistances in terms of financing the costs of the feasibility studies of projects, and capacity building of government and non-government officials in various areas. The Fund’s operations are focused primarily on the agriculture and irrigation, transport and communications, energy, industry water and sewage sectors.
The first loan from the KFAED to the Maldives was in 1976 which was for the Airport project. Since then, the KFAED has supported Maldives by means of various loans, grants and technical assistance in areas such as transport, fishing, water supply and sewage and harbors. Additionally the Fund is co-financing one of the mega projects of the country - development of the Velana International Airport.