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The Arab Energy Fund adopts a prudent risk management approach
that supports its long-term financial
sustainability while assuming measured levels of risk consistent with its mandate, and its strategic objectives. As the Fund marks its fiftieth anniversary, this approach is guided by a commitment to institutional maturity, maintaining a risk profile aligned with high investment-grade rating standards.
The Fund’s performance is underpinned by a comprehensive Risk Appetite Framework aligned with global best practices and reviewed regularly by senior management and the Board. Following the recent reorganization of Board committees, risk oversight is now proactively managed through the Risk and Sustainability Committee (RSC) and the Audit & Compliance Committee (ACC), ensuring that risk-related matters are monitored and addressed with specialized focus.
Risk management is embedded across all activities, from strategic planning to internal corporate functions.
In 2025, oversight was further extended to
include internal functions such as procurement and operational support, reinforcing a consistent enterprise-wide risk culture and control environment. During 2025, the Fund’s strong credit profile was reaffirmed by the major rating agencies, reflecting robust capital adequacy and prudent risk management.
In 2025, the Fund continued to systematically identify and mitigate risks across all business lines.
It reinforced its position as a secure and credible financial institution operating within a dynamic energy landscape.
Institutional Strength
Institutional Strength That Sustains Growth
