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Chapter

About the Arab Energy Fund

Fifty Years of Institutional Credibility

Strategic Highlights

A Year of Measurable Progress

Growth and Impact

Expanding Impact Across the Energy Value Chain

Institutional Strength

Institutional Strength That Sustains Growth

Financial Statements

Performance Measured with Transparency

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04

The Fund’s
governance
framework is supported by a comprehensive set of

Board-approved policies that define risk appetite, establish control parameters, and guide decision-making across its activities. These policies ensure consistency in how risks are identified, measured, managed, and monitored, while aligning operational practices with the Fund’s mandate and strategic objectives.

In 2025, these core policies continued to underpin prudent capital deployment, disciplined balance sheet management, and responsible sustainability integration. Together, they reinforce institutional resilience and provide a structured foundation for maintaining stakeholder confidence across cycles and markets.

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01

Anti Money Laundering (AML) Policy

Outlines the policies and procedures to prevent money laundering, combating financing of terrorism and due diligence requirements.

02

Conflict of Interest Policy

Sets out the principles and procedures for identifying, disclosing and managing actual or potential conflicts of interests.

03

Credit Risk Policy

Sets guidelines for the assessment, structuring, approval, and monitoring of credit risks from loan or guarantee exposures (including nonperforming assets) arising from the default or change in the creditworthiness of a borrower or any relevant third-party entity.

04

Expected Credit Loss (ECL) Policy

Presents the Fund’s operational interpretation of the IFRS 9 Impairment Standard. The Policy describes how to determine the impairment stage of a facility and explains how to calculate expected credit loss for the different stages.

05

Interest Rate Risk in Banking Book (IRRBB) Policy

Aligns with Basel standards to manage interest rate exposure across currencies and yield curves.

06

Investment Policy Statement

Governs the investments managed by the Investments & Partnerships (I&P) business unit of the Fund, under the leadership of the Chief Investment Officer (CIO).

07

Liquidity Risk Policy

Outlines the framework for managing liquidity risk at the Fund, including the liquidity risk appetite from a liquidity standpoint, governance structure, the identification, measurement, monitoring, and reporting of liquidity risk.

08

Market Risk Policy

Prescribes metrics and tools for measuring and monitoring market risk. It covers risks that can be managed by Treasury and Capital Markets (TCM) using publicly traded market instruments.

09

Operational Risk Policy

Defines the Operational Risk Management framework of the Fund.

10

Stress Testing Policy

Guides the Fund in managing interest rate risk and ensures proper stress testing of its exposures. It helps identify vulnerabilities under adverse economic and business conditions.

11

Whistleblowing policy

Provides a confidential mechanism for reporting misconduct, malpractice and unethical behavior, while ensuring protection against retaliation.

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Institutional Strength

Institutional Strength That Sustains Growth

04

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