Since Saudi Arabia began reporting its development assistance data to the DAC in 2005, significant increases have been recorded; the country’s global ODA rose nominally from $1.551 billion in 2007 to a peak of $4.979 billion in 2008. In 2009, Saudi Arabia’s global ODA fell to $3.134 billion, the majority of which ($2.925 billion) was distributed through bilateral channels. Saudi Arabia’s multilateral disbursements have also increased significantly in recent years, reaching $209 million in 2009, up from only $21 million in 2008.

The DAC does not disaggregate Saudi Arabia’s development assistance by geographic region, due to a confidentiality clause. However, an estimate of its development assistance to Africa (both North and sub-Saharan) can be calculated based on DAC data and regional allocations identified in the Saudi Fund for Development (SFD)’s 2009 Annual Report. According to this calculation, in 2009 Saudi Arabia’s ODA to Africa represented 48% of its global spending, at a level of $1.517 billion, up from $496 million in 2005. Although it oversees only a fraction of Saudi Arabia’s development assistance, the SFD is Saudi Arabia’s main development agency. It was established in 1975 to finance projects in low-income countries through the provision of concessional loans and grants for budget support and development projects.

Approximately half of SFD aid is disbursed to Asian countries, with the other half going to African countries. The majority of SFD aid supports projects focused on improving transportation, communication and social infrastructure.

Details on the effectiveness of Saudi Arabian bilateral aid are limited. The majority of Saudi development assistance is untied, largely because competitive bidding, where local suppliers are able to participate, is a mandatory process for Arab donors. Some 35–50% of SFD aid to HIPCs comes in the form of grants.

Because the SFD works only with national governments, a very high proportion of its aid is captured in recipient country budgets, which helps ensure that resources are coordinated with national poverty reduction efforts. In terms of predictability, although the SFD plans internally for multi-year disbursements, these projections are rarely made public.