OFID is a Development Institution, established in 1976 by OPEC Member Countries, with core activities: providing financial loan through Public and Private Sector Facilities, Grants for under developed countries.

OFID's key aim is to foster social and economic progress in the developing world through the provision of concessional financing for developing countries. However, OFID's work goes beyond simply dispensing aid; one of its central aims has always been to advance ‘South-South’ solidarity in every way available to it. It does this by promoting cooperation in many spheres among countries of the developing world. It also does what it can to champion the cause of the developing world in the international arena.

In this regard, OFID has been closely associated with two multilateral institutions of great relevance in the developing world: IFAD and the Common Fund for Commodities (CFC).