The Islamic Development Bank (IsDB) (Arabic: البنك الإسلامي للتنمية) is a multilateral development finance institution that is focused on islamic finance located in Jeddah, Saudi Arabia. There are 57 shareholding member states with the largest single shareholder being Saudi Arabia.
It was founded in 1973 by the Finance Ministers at the first Organisation of the Islamic Conference (now called the Organisation of Islamic Cooperation) with the support of the king of Saudi Arabia at the time (Faisal), and began its activities on 3 April 1975.
On the 22 May 2013, IDB tripled its authorized capital to $150 billion to better serve Muslims in member and non-member countries.The Bank has received credit ratings of AAA from Standard & Poor’s, Moody’s, and Fitch. Saudi Arabia holds about one quarter of the bank’s paid up capital. The IDB is an observer at the United Nations General Assembly.
The present membership of the Bank consists of 57 countries. The basic condition for membership is that the prospective member country should be a member of the Organisation of Islamic Cooperation (OIC), pay its contribution to the capital of the Bank and be willing to accept such terms and conditions as may be decided upon by the IDB Board of Governors.
Ranked on the basis of paid-up capital (as of August 2015), major shareholders include:
- Saudi Arabia (26.57%)
- Algeria (10.66%)
- Iran (9.32%)
- Egypt (9.22%)
- Turkey (8.41%)
- United Arab Emirates (7.54%)
- Kuwait (7.11%)
- Pakistan (3.31%)
- Libya (3.31%)
- Indonesia (2.93%)
IDB has evolved into a group of five Entities, consisting of Islamic Development Bank (IDB), Islamic Research & Training Institute (IRTI), Islamic Corporation for Development of the Private Sector (ICD), Islamic Corporation for Insurance of Investment and Export Credit (ICIEC) and International Islamic Trade Finance Corporation (ITFC).
IDB Group is engaged in a wide range of specialized and integrated activities such as:
- Project financing in the public and private sectors;
- Development assistance for poverty alleviation;
- Technical assistance for capacity-building;
- Economic and trade cooperation among member countries;
- Trade financing;
- SME financing;
- Resource mobilization;
- Direct equity investment in Islamic financial institutions;
- Insurance and reinsurance coverage for investment and export credit;
- Research and training programs in Islamic economics and banking;
- Awqaf investment and financing;
- Special assistance and scholarships for member countries and Muslim communities in non-member countries;
- Emergency relief; and
- Advisory services for public and private entities in member countries.
Projects and programs
- The Gao Bridge in Mali:Until a few years ago, crossing the Niger River at Gao was done by a ferry that might or might not be operating. This hindered progress and discouraged trade. The Gao Bridge financed by the IDB connected the once isolated Gao Region in eastern Mali to the heartland.
Dr Ali had previously declared that IDB was responsible for the smooth functioning of al-Quds Intifada Fund and al-Aqsa Fund, both established during an Arab summit in Cairo in October 2000. According to the final communiqué of the summit, “Al-Quds Intifada Fund will have a capital of 200 million dollars to be allocated for disbursement to the families of Palestinian martyrs fallen in the Intifada.”
However, a Wikileaks cable clearly shows that the US State Department investigated the IDB’s links to these two funds and found no “evidence sufficient to corroborate Israeli and press allegations of IDB links to terrorism”.
- ^“UN Secretary General Praises IDB Group’s Role in Supporting Member Countries’ Plans and Programs”. Retrieved 4 February 2016.
- ^Taylor & Francis Group; Dean, Lucy (2003), The Middle East and North Africa 2004: 2004 (Illustrated ed.), Routledge, ISBN 1-85743-184-7
- ^“About IDB”. Islamic Development Bank. Retrieved May 25, 2018.
- ^Epstein, Matthew (September 2003). “Saudi Support for Islamic Extremism in the United States” (PDF). Islam Daily. Retrieved 22 April2012.
- ^Islamic Development Bank triples authorised capital| reuters.com|2013/05/22
- ^“Capital Markets”. ISDB. Retrieved 25 May 2018.
- ^“Moody’s rating” (PDF). ISDB. Retrieved 25 May 2018.
- ^“Fitch rating” (PDF). ISDB. Retrieved 25 May 2018.
- ^ Jump up to:ab “IDB Group in Brief”. Retrieved 25 August 2015.
- ^“The Gao Bridge in Mali” (PDF). Retrieved 25 May 2018.
- ^“Jihad Economics and Islamic Banking”. Retrieved 27 January 2016.
- ^Dave Clark. “Banking on terrorism in Australia”. Retrieved 27 January 2016.
- ^>Silverberg, Kristen (March 23, 2007). “INSTRUCTIONS ON RESOLUTION REQUESTING OBSERVER STATUS FOR THE ISLAMIC DEVELOPMENT BANK GROUP”. Wikileaks cable.