Islamic Development Bank

{{Short description|Multilateral development financing institution located in Jeddah, Saudi Arabia}}

{{Infobox organization

| name = Islamic Development Bank

| logo = Islamic Development Bank logo.svg

| caption = IsDB logo

| map = Islamic Development Bank Map.svg

| map_caption = Memebers of the Islamic Development Bank

| abbreviation = IsDB

| formation = {{start date|1975}}

| type = Development bank

| key_people = Muhammed Al-Jasser, President

| location = Jeddah, Saudi Arabia

| membership = 57 countries

| num_employees = 932

| homepage = {{URL |http://www.isdb.org/ }}

}}

The Islamic Development Bank ({{langx|ar|البنك الإسلامي للتنمية}}, abbreviated as IsDB) is a multilateral development finance institution that is focused on Islamic finance for infrastructure development and located in Jeddah, Saudi Arabia.{{Cite web |url=https://uia.org/s/or/en/1100039734 |url-access= |title=Islamic Development Bank (IsDB) |author1=Staff writer |year=2024 |department=UIA Global Civil Society Database |website=uia.org |publisher=Union of International Associations |agency=Yearbook of International Organizations Online |location=Brussels, Belgium |format= |arxiv= |asin= |bibcode= |doi= |doi-broken-date= |isbn= |issn= |jfm= |jstor= |lccn= |mr= |oclc= |ol= |osti= |pmc= |pmid= |rfc= |ssrn= |zbl= |id= |access-date=24 December 2024 |url-status= |archive-url= |archive-date= |via= |quote= |trans-quote= |ref= |postscript=}}{{citation|url=https://books.google.com/books?id=pP315Mw3S9EC&q=Palestine+member+Islamic+countries&pg=PA1328|title=The Middle East and North Africa 2004: 2004|last1=Taylor & Francis Group|first2=Lucy|last2=Dean|edition=Illustrated|publisher=Routledge|year=2003|isbn=1-85743-184-7}} There are 57 shareholding member states with the largest single shareholder being Saudi Arabia.{{cite web|url=http://www.isdb.org/irj/portal/anonymous?NavigationTarget=navurl%3A%2F%2F24de0d5f10da906da85e96ac356b7af0|title=About IDB|website=Islamic Development Bank|access-date=May 25, 2018|archive-date=February 10, 2018|archive-url=https://web.archive.org/web/20180210003117/https://www.isdb.org/irj/portal/anonymous?NavigationTarget=navurl%3A%2F%2F24de0d5f10da906da85e96ac356b7af0|url-status=dead}}

History

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.{{cite web|last=Epstein|first=Matthew|title=Saudi Support for Islamic Extremism in the United States|url=http://www.islamdaily.org/Media/Documents/091003_epstein.pdf|publisher=Islam Daily|access-date=22 April 2012|date=September 2003|archive-url=https://web.archive.org/web/20131219020631/http://www.islamdaily.org/Media/Documents/091003_epstein.pdf|archive-date=19 December 2013|url-status=dead}}

On 22 May 2013, IsDB tripled its authorized capital to $150 billion to better serve Muslims in member and non-member countries.[https://www.reuters.com/article/islamic-finance-idb-idUSL6N0E32P920130522 Islamic Development Bank triples authorised capital]| reuters.com|2013/05/22 The Bank has received credit ratings of AAA from Standard & Poor's,{{cite web|url=http://www.isdb.org/irj/go/km/docs/documents/IDBDevelopments/Internet/English/IDB/CM/Resources_For/StanderedPoors.html|title=Capital Markets|publisher=ISDB|access-date=25 May 2018|archive-date=4 March 2016|archive-url=https://web.archive.org/web/20160304083836/http://www.isdb.org/irj/go/km/docs/documents/IDBDevelopments/Internet/English/IDB/CM/Resources_For/StanderedPoors.html|url-status=dead}} Moody's,{{cite web|url=http://www.isdb.org/irj/go/km/docs/documents/IDBDevelopments/Attachments/Capital%20Market/RatingReportsMoodys.pdf|title=Moody's rating|publisher=ISDB|access-date=25 May 2018|archive-date=4 March 2016|archive-url=https://web.archive.org/web/20160304065817/http://www.isdb.org/irj/go/km/docs/documents/IDBDevelopments/Attachments/Capital%20Market/RatingReportsMoodys.pdf|url-status=dead}} and Fitch.{{cite web|url=http://www.isdb.org/irj/go/km/docs/documents/IDBDevelopments/Internet/English/IDB/CM/Resources_For/Fitch_rating.pdf|title=Fitch rating|publisher=ISDB|access-date=25 May 2018|archive-date=12 July 2017|archive-url=https://web.archive.org/web/20170712074257/http://www.isdb.org/irj/go/km/docs/documents/IDBDevelopments/Internet/English/IDB/CM/Resources_For/Fitch_rating.pdf|url-status=dead}} Saudi Arabia holds about one quarter of the bank's paid up capital. The IDB is an observer at the United Nations General Assembly.

Membership

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 IsDB Board of Governors.

File:IDB Major Shareholders.jpg

Ranked on the basis of paid-up capital (as of May 2024),{{cite web|title=IsDB Member Countries|url=https://www.isdb.org/isdb-member-countries}} major shareholders include:

Saudi Arabia (22.5%)
Libya (9.03%)
Indonesia (7.94%)
Iran (7.90%)
Nigeria (7.33%)
Qatar (6.87%)
Egypt (6.77%)
Kuwait (6.62%)
United Arab Emirates (6.48%)
Turkey (6.17%)

Structure

[[File:IDB Country Membership.jpg|thumb|Country Membership in the Entities of IsDB Group

[https://www.isdb.org/irj/go/km/docs/documents/IDBDevelopments/Internet/English/IDB/CM/Publications/IDBGroupBrief2013.pdf]

]]

IDB has evolved into a group of five entities, consisting of Islamic Development Bank (IsDB), Islamic Development Bank Institute (IsDBI), 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).

Activities

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.{{cite web|url=http://www.isdb.org/irj/go/km/docs/documents/IDBDevelopments/Attachments/Projects/IDB_gao_bridge_web.pdf|archive-url=https://web.archive.org/web/20131220022725/http://www.isdb.org/irj/go/km/docs/documents/IDBDevelopments/Attachments/Projects/IDB_gao_bridge_web.pdf|url-status=dead|archive-date=20 December 2013|title=The Gao Bridge in Mali|access-date=25 May 2018}}