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Islamic Development Bank

From Wikipedia, the free encyclopedia

Islamic Development Bank
AbbreviationIsDB
Formation1975 (1975)
TypeDevelopment bank
Location
Membership
57 countries
Key people
Muhammed Al-Jasser, President
Employees932
Websitewww.isdb.org

The Islamic Development Bank (Arabic: 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.[1] There are 57 shareholding member states with the largest single shareholder being Saudi Arabia.[2]

History

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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.[3]

On 22 May 2013, IDB tripled its authorized capital to $150 billion to better serve Muslims in member and non-member countries.[4] The Bank has received credit ratings of AAA from Standard & Poor's,[5] Moody's,[6] and Fitch.[7] Saudi Arabia holds about one quarter of the bank's paid up capital.[8] The IDB is an observer at the United Nations General Assembly.

Membership

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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.

IDB Major Shareholders as at 30 Dhul Hijjah 1432H (25 November 2011)

Ranked on the basis of paid-up capital (as of May 2024),[8] major shareholders include:

  1. Saudi Arabia (22.5%)
  2. Libya (9.03%)
  3. Indonesia (7.94%)
  4. Iran (7.90%)
  5. Nigeria (7.33%)
  6. Qatar (6.87%)
  7. Egypt (6.77%)
  8. Kuwait (6.62%)
  9. United Arab Emirates (6.48%)
  10. Turkey (6.17%)

Structure

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Country Membership in the Entities of IDB Group [1]

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

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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

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  • 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.[9]

Criticism

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Dr. Ali had previously declared that IDB was in charge of the financing 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 capital of 200 million dollars to be allocated for disbursement to the families of Palestinian martyrs fallen in the Intifada."[10][11]

See also

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References

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  1. ^ Taylor & Francis Group; Dean, Lucy (2003), The Middle East and North Africa 2004: 2004 (Illustrated ed.), Routledge, ISBN 1-85743-184-7
  2. ^ "About IDB". Islamic Development Bank. Archived from the original on 10 February 2018. Retrieved 25 May 2018.
  3. ^ Epstein, Matthew (September 2003). "Saudi Support for Islamic Extremism in the United States" (PDF). Islam Daily. Archived from the original (PDF) on 19 December 2013. Retrieved 22 April 2012.
  4. ^ Islamic Development Bank triples authorised capital| reuters.com|2013/05/22
  5. ^ "Capital Markets". ISDB. Archived from the original on 4 March 2016. Retrieved 25 May 2018.
  6. ^ "Moody's rating" (PDF). ISDB. Archived from the original (PDF) on 4 March 2016. Retrieved 25 May 2018.
  7. ^ "Fitch rating" (PDF). ISDB. Archived from the original (PDF) on 12 July 2017. Retrieved 25 May 2018.
  8. ^ a b "IsDB Member Countries".
  9. ^ "The Gao Bridge in Mali" (PDF). Archived from the original (PDF) on 20 December 2013. Retrieved 25 May 2018.
  10. ^ "Jihad Economics and Islamic Banking". Archived from the original on 1 February 2016. Retrieved 27 January 2016.
  11. ^ Dave Clark. "Banking on terrorism in Australia". Retrieved 27 January 2016.
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