Overview

The Development Operations of OFID are carried out through four main channels:

Public Sector Operations

This is the traditional financing window of OFID and comprises loans 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, clean water and sanitation services, and the construction of schools and hospitals.
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Private Sector Operations

OFID's Private Sector Facility was established in 1998 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, urban development and financial services.
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Trade Finance Facility (TFF)

The need to create the TFF emerged through discussions with officials from partner countries who indicated that the lack of availability of trade financing, together with its high cost, present a substantial burden. For OFID, conducting trade finance operations is seen as a natural progression, complementing its range of other development products, including long- and medium-term project financing in the public and private sectors.
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Grant Operations

OFID'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. In addition to its regular program, the grants window encompasses three Special Accounts: for Food Aid to Africa, HIV/AIDS mitigation activities, and relief and reconstruction efforts in Palestine.
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Support to other organizations

Over and above its own operations, OFID indirectly assists the activities of other development institutions by contributing to their resources. These other organizations are: the International Fund for Agricultural Development, the Common Fund for Commodities and the Trust Fund of the International Monetary Fund.
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