Islamic Development Bank (IDB)
Islamic Development Bank ( IDB )
|Islamic Development Bank (IDB)|
|Phone:||Phone+966 12 636 1400|
Fax+966 12 636 6871
Head Office Address:
P.O.Box 5925, Jeddah 21432, KSA
Objectives : Together We Build A Better Future.
Membership: 56 countries
Key people : Ahmad Mohamed Ali Al-Madani, President
The Islamic Development Bank is an international financial institution established in pursuance of the Declaration of Intent issued by the Conference of Finance Ministers of Muslim Countries held in Jeddah in Dhul Q’adah 1393H, corresponding to December 1973. The Inaugural Meeting of the Board of Governors took place in Rajab 1395H, corresponding to July 1975, and the Bank was formally opened on 15 Shawwal 1395H corresponding to 20 October 1975.
Objectives of IDB:
The purpose of the Bank is to foster the economic development and social progress of member countries and Muslim communities individually as well as jointly in accordance with the principles of Shari’ah i.e., Islamic Law.
Functions of IDB:
The functions of the Bank are to participate in equity capital and grant loans for productive projects and enterprises besides providing financial assistance to member countries in other forms for economic and social development. The Bank is also required to establish and operate special funds for specific purposes including a fund for assistance to Muslim communities in non-member countries, in addition to setting up trust funds. The Bank is authorized to accept deposits and to mobilize financial resources through Shari’ah compatible modes. It is also charged with the responsibility of assisting in the promotion of foreign trade especially in capital goods, among member countries; providing technical assistance to member countries; and extending training facilities for personnel engaged in development activities in Muslim countries to conform to the Shari’ah.
Membership of IDB:
The present membership of the Bank consists of 56 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.
Capital of IDB:
As per the decision of the 38th Annual Meeting of the Board of Governors, the authorized capital of the IDB was raised to ID 100 billion and its subscribed capital to ID 50 billion.
|SN||Country||% of Total|
|5||United Arab Emirates||7.51%|
NB: Ranked on the basis of subscribed capital (as of October 2015) major shareholders include
Head Office and Regional Offices of IDB :
The Bank’s principal office is in Jeddah in the Kingdom of Saudi Arabia. Four regional offices were opened in Rabat, Morocco (1994), Kuala Lumpur, Malaysia (1994). Almaty, Kazakhstan (1997), and Dakar, Senegal (2008). It also has two country gateway offices in Ankara, Turkey and Jakarta (Indonesia) and field representatives in 14 member countries (Afghanistan, Azerbaijan, Bangladesh, Burkina Faso, Guinea, Iran, Mali, Pakistan, Sudan, Turkmenistan, Uzbekistan, Yemen, Mauritania and Libya).
Financial Year of IDB:
The Bank’s financial year is the lunar Hijra Year.
Islamic Development Bank (IDB)
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 Jeddaha 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:
- Participation in equity capital of productive projects and enterprises in member countries.
- Investment in economic and social infrastructure projects in member countries by way of participation or other financial arrangement.
- Extending loans to the private and public sector for the financing of productive projects, enterprises and programs member countries.
- Establish and operate special funds for specific purposes including a Fund for assistance to Muslim communities in non-member countries.
- Operate trust funds.
- Accept deposits and raise funds in any other manner.
- Assist in the promotion of foreign trade especially in capital goods, among member countries.
- Suitably invest funds not needed in its operations.
- Provide technical assistance to member countries.
- Extend training facilities for personnel engaged in development activities in member countries.
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