The KFAED was established in 1961. It aims to render financial aid to the developing Arab countries. For over the last years the Fund has expanded the geography of cooperation with the countries of Europe, Asia, Africa and Latin America.

The legal basis of cooperation of Uzbekistan with KFAED was established during the official visit of the President of Uzbekistan Islam Karimov to Kuwait in January 2004, when the sides signed the Memorandum on cooperation between the Government of Uzbekistan and the Kuwait Fund for Arab Economic Development.

Earlier the Fund rendered the financial assistance for the implementation of several other social and economic projects in Uzbekistan.