The Bank is a financial institution funded by the Governments of the Member States of the League of Arab States which signed the Establishing Agreement (18^th. February, 1974). The Bank is an independent international institution enjoying full international legal status and complete autonomy in administrative and financial matters. It is governed by the provisions of its Establishing Agreement and the principles of international law.

The Bank was created for the purpose of strengthening economic, financial and technical cooperation between Arab and African countries, to make Arab-African solidarity a concrete reality and to base this co-operative venture on foundations of friendship and equality. To this end, the Bank was given a mandate to:

• Assist in financing economic development in non-Arab African countries.

• Stimulate the contribution of Arab capital to African development.

• Help provide the technical assistance required for the development of Africa.