The Opec Fund for International Development has launched a US$1.5bn financing initiative to support countries facing energy, commodity and trade disruptions due to the conflict in the Middle East.
Unveiled in Vienna last week, the Economic Stability, Trade and Resilience Initiative (E-Star) will be deployed from 2026 to 2028 across the fund’s partner countries, the development finance institution said. The Opec Fund operates in more than 125 countries, most of which are developing nations.
The initiative has been formed due to pressures in the energy and commodities markets following the US-Israel-Iran war, which have hampered trade flows and tightened financing conditions, the fund said.
“For many developing economies, these pressures are already straining budgets, trade balances and growth prospects,” it said.
Trade finance is one of three priority areas for the E-Star initiative, with proceeds to be deployed to provide working capital support and facilitate the supply of critical goods, including energy, food and agricultural inputs.
It also aims to provide “fast-disbursing finance” to governments facing rising import costs, and make targeted investments in the energy, transport and logistics infrastructure sectors to strengthen supply chains and reduce exposure to future disruptions.
“Many of our partner countries are facing immediate pressure from higher costs, tighter financing conditions and disruption to critical trade flows,” said Opec Fund president Abdulhamid Alkhalifa.
“E-Star is designed to respond quickly and where it matters most: helping countries keep essential services running, secure critical supplies and stay on track with their development priorities. At a time of uncertainty, this is about delivering practical support and reinforcing partnership.”
The launch follows last month’s announcement that the Opec Fund had issued a US$30mn loan to Bangladesh’s Prime Bank, aimed at providing “critical” trade finance support to businesses grappling with economic pressures.
