OPEC Fund launches landmark climate finance compact, unveils US$1.5 billion digital transformation plan at 2026 Development Forum
Highlights:
- The OPEC Fund and the Government of Barbados, as Chair of the Climate Vulnerable Forum and its V20 Finance Ministers, launched the Vulnerability to Viability Compact (V2V) to expand access to affordable, long-term development finance for 74 climate-vulnerable economies.
- The OPEC Fund unveiled a US$1.5 billion Digital Transformation Action Plan to support digital infrastructure, systems and applications in developing countries through 2030.
- Financing agreements signed at its 2026 Development Forum and new loans and initiatives approved in the second quarter of 2026 are expected to exceed US$2.8 billion, supporting economic reform, climate resilience, social protection, transport connectivity, trade finance, small and medium-sized enterprises and critical infrastructure.
- The OPEC Fund provided its first local currency loan in Azerbaijan through a financing agreement with Bank Respublika.
VIENNA, June 24, 2026 /CNW/ -- The OPEC Fund for International Development (the OPEC Fund) concluded its 2026 Development Forum and Golden Jubilee commemoration by launching two major development initiatives and advancing more than US$2.8 billion in new financing, partnerships and development programs across its partner countries.
The Forum's key outcomes included the launch of the Vulnerability to Viability Compact (V2V), designed to improve access to affordable development finance for climate-vulnerable countries, and the unveiling of the OPEC Fund's US$1.5 billion Digital Transformation Action Plan, which will guide investments in digital infrastructure, capabilities and applications through 2030.
OPEC Fund President Abdulhamid Alkhalifa said: "The development landscape is changing profoundly, but the central challenge remains the same: ensuring that countries have access to the finance, technology and partnerships they need to achieve their development goals on their own terms. In our 50th anniversary year, the OPEC Fund is not only reflecting on five decades of cooperation but looking ahead to the challenges and opportunities that will shape the next fifty years."
The OPEC Fund Development Forum 2026 brought together more than 600 leaders and representatives from member and partner countries, development institutions, the private sector and civil society under the theme 'A Transition That Empowers Our Tomorrow.'
Climate finance and digital transformation
Among the Forum's principal outcomes was the launch of the Vulnerability to Viability Compact, a joint initiative by the OPEC Fund and the Government of Barbados as Chair of the Climate Vulnerable Forum and its V20 Finance Ministers.
Bringing together 74 climate-vulnerable economies and 14 partner development finance institutions, the Compact seeks to expand access to affordable, predictable and long-term development finance. Initial areas of focus include water security, education and health.
The Forum also saw the unveiling of the OPEC Fund's US$1.5 billion Digital Transformation Action Plan, which will support digital infrastructure, capabilities and applications in partner countries through 2030. The initiative establishes digital transformation as the institution's third cross-cutting priority alongside climate action and food security.
President Alkhalifa said: "The V2V Compact and our Digital Transformation Action Plan respond to two defining priorities of our time. Climate-vulnerable countries need access to finance on terms that reflect their realities, while all countries need the infrastructure and capabilities to participate fully in a rapidly changing digital economy. Both initiatives are grounded in the same principle: development must be country-led, inclusive and capable of delivering lasting resilience."
New financing and first local currency transaction in Azerbaijan
Beyond the two flagship initiatives, the Forum advanced over US$450 million in new financing commitments to strengthen economic resilience, expand access to finance and support essential infrastructure across partner countries. The agreements included a landmark transaction marking the OPEC Fund's first local currency financing operation in Azerbaijan:
- Armenia: An €80 million loan will support reforms to improve the business environment, facilitate investment and trade, strengthen competition and advance greener, more resilient growth. A separate US$50 million non-sovereign loan to Ameriabank will support trade finance, with a focus on agribusiness and micro, small and medium-sized enterprises.
- Azerbaijan: A US$20 million-equivalent local currency loan to Bank Respublika will support local businesses and small and medium-sized enterprises (SMEs).
- East Africa: A US$65 million syndicated loan facility arranged for the East African Development Bank will support SMEs and critical infrastructure, including US$25 million mobilized from First Abu Dhabi Bank.
- Mauritania: A Country Partnership Strategy with an envelope of US$180 million for 2026-2029 will focus on climate-resilient infrastructure, food security and rural value chains. A separate US$15 million loan will strengthen social protection for vulnerable populations through the Resilience and Productive Safety Nets Program.
- Nicaragua: A US$31.5 million loan will rehabilitate the Empalme Telica-Malpaisillo-Empalme San Isidro road, improving connectivity and benefiting rural communities.
Expanding strategic cooperation
The Development Forum also expanded the OPEC Fund's network of strategic partnerships through new cooperation agreements with the Digital Cooperation Organization (DCO), Gavi - the vaccine alliance, the Islamic Organization for Food Security, the Middle East Green Initiative Secretariat and Saudi Eksab. The agreements support collaboration in digital transformation, sustainable health financing and immunization, food and water security, climate action and sustainable investment.
On the sidelines of the Forum, the OPEC Fund hosted the annual meetings of the heads of institutions of the Arab Coordination Group and strengthened engagement with regional and international partners, including the V20 Group and CAF - Development Bank of Latin America and the Caribbean, the African Development Bank and the Interamerican Development Bank through high-level roundtables focused on enhancing cooperation and development impact.
About the OPEC Fund
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed more than US$32 billion to development projects in over 125 countries. These projects represent a total value exceeding US$240 billion, equivalent to approximately US$7.50 mobilized for every US$1 committed by the OPEC Fund. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA+, Outlook Stable by S&P. Our vision is a world where sustainable development is a reality for all.
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Photo: https://mma.prnewswire.com/media/2999633/President_Abdulhamid_Alkhalifa.jpg
Photo: https://mma.prnewswire.com/media/2999634/V2V_Compact_launch.jpg
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Logo: https://mma.prnewswire.com/media/2998914/6012798/OPEC_Fund_50th_Logo.jpg
SOURCE OPEC Fund for International Development
Basak Pamir, [email protected]
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