To establish the Middle East Development Bank as an instrument for fostering regional development and economic cooperation among private businesses and governments in the region.

Establishes the Middle East Development Bank as an agency of the United States.

Directs such Bank to: (1) conduct financing, insurance, and reinsurance operations on a self-sustaining basis; (2) utilize private credit and investment institutions and the Overseas Private Investment Corporation's guaranty authority to mobilize capital investment funds; (3) broaden private participation and revolve its funds through selling its direct investments to private investors, where appropriate; (4) conduct its insurance operations with due regard to principles of risk management; (5) further the balance-of-payments and employment objectives of the United States; and (6) advise and assist interested agencies and organizations with respect to projects and programs relating to the development of cooperative enterprises in the Middle East.