Islamic Development Bank (IDB)

Islamic Development Bank (IDB)

IDB Establishment:

The idea of establishing an international financial institution for Muslim counties was
discussed in the late 1960s by the Organization of Islamic Conference (QIC) Working
papers were circulated and proposals made, but no concerted action was taken until the
first meeting of the Finance Ministers of the Islamic countries held in Jeddah 1393H
(December 1973).

The second conference of finance ministers held in August 1974 adopted the Articles of
Agreements establishing the Bank. The Bank began functioning on 15 Shawal 1395H
(20th October 1975).

IDB Objectives:

The establishment of the Islamic Development Bank was aimed at contributing to economic development and social progress of its member countries by reinforcing economic co-operation among them, assisting in the development of Islamic economics, banking, and finance, and promoting the economic and social welfare of Muslim communities in non-member countries. In order to realize the above objectives, the IDB is empowered by its Articles of Agreement to engage in the following activities:

1. Participation in the equity capital of productive projects and enterprises in member
countries.
2. Investment in economic and social infrastructure projects in member countries by
way of participation or other financial arrangements.
3. Extending loans to the private and public sector for the financing of productive
projects, enterprises, and programs member countries.
4. Establish and operate special funds for specific purposes including a Fund for
assistance to Muslim communities in non-member countries.
5. Operate trust funds.
6. Accept deposits and raise funds in any other manner.
7. Assist in the promotion of foreign trade especially in capital goods, among member
countries.
8. Suitably invest funds not needed in its operations.
9. Provide technical assistance to member countries.
10. Extend training facilities for personnel engaged in development activities in member
countries.
About IDB: It is a multilateral development bank (MDB), working to improve the lives of those we serve by promoting social and economic development in Muslim countries and communities worldwide, delivering impact at scale.

They provide the infrastructure to enable people to lead better lives and achieve their full potential.

They bring together 57 member countries across four continents – touching the lives of 1 in 5 of the world’s population.

They  are one of the world’s most active MDBs, and global leaders in Islamic Finance, with an AAA rating, and operating assets of more than USD 16 billion and subscribed capital of USD 70 billion.

They are a truly global institution, headquartered in Jeddah, Saudi Arabia, with major hubs in Morocco, Malaysia, Kazakhstan and Senegal, and gateway offices in Egypt, Turkey, Indonesia, Bangladesh and Nigeria.

They  foster collaboration between our members nations in a uniquely non-political environment, as we focus on the betterment of humanity.

They put the support in place to enable our member countries to grow their economies and societies, so they are ready to embrace the challenges and opportunities of our modern world.

IDB 5 pillars of activity:

  1. Building partnerships between governments, the private sector and civil society through Public-Private Partnerships (PPP).
  2. Adding value to the economies and societies of developing countries through increased skills and knowledge sharing.
  3. Focusing on science, technology and innovation led solutions to the world’s greatest development challenges, through boosted connectivity and funding, and a focus on the UN’s Sustainable Development Goals.
  4. Promoting global development that is underpinned by Sharia complaint long-term sustainable and ethical financing structures, as global leaders in Islamic Finance.
  5. Fostering collaboration between our members’ nations in a uniquely non-political environment, as we come together to focus on the betterment of humanity.