Islamic Development Bank

Many lands work together. They help build things. This bank helps build roads and big bridges.

One bridge was built in a place called Mali. Before the bridge, people used a boat to cross a river. Now, they can cross easily.

Fifty-seven lands are members. Saudi Arabia is a large member. The bank also helps people who need food or aid. It helps many people live better lives.

The Islamic Development Bank helps many countries grow. It is based in Jeddah, Saudi Arabia. The bank uses Islamic finance to build things like roads.

Leaders started the bank in 1973. They wanted to help their people. The bank began its work in 1975. Today, 57 countries are members. To join, a country must be part of the Organisation of Islamic Cooperation.

Saudi Arabia is a very large member. It owns about one quarter of the bank. Other big members include Libya and Indonesia. In 2013, the bank grew its money to $150 billion. This helps it serve more people.

The bank does many jobs. It gives money for big projects. It helps people who are poor. It also gives scholarships to students.

One project was a bridge in Mali. Before the bridge, people used a ferry boat. The boat did not always work. This made trade very hard. The new Gao Bridge helped people travel easily. Now, the Gao Region is well connected to other places.

The Islamic Development Bank, or IsDB, is a special group that helps countries grow. It is located in Jeddah, Saudi Arabia. The bank focuses on a way of banking called Islamic finance. This money helps build important things like roads and buildings. This is called infrastructure development. The bank works to make life better for many people. It helps both public groups and private businesses.

There are many ways the bank helps its members. It provides money for big projects and helps people who are poor. It also helps with trade between different countries. The bank offers scholarships to students in member countries. It can even give emergency relief when people need it most. Some parts of the bank help with insurance for trade. Others focus on research and training in banking. The group has grown into five different parts to do all this work.

Leaders first met to start this bank in 1973. They were the Finance Ministers of the Organisation of the Islamic Conference. King Faisal of Saudi Arabia helped support this idea. The bank officially began its work on April 3, 1975. In 2013, the bank made a big change. It tripled its authorized capital to $150 billion. This extra money helps the bank serve even more people.

Today, there are 57 member countries in the bank. To join, a country must be part of the Organisation of Islamic Cooperation. They must also pay their share of the money. Saudi Arabia is the largest shareholder. It holds about 22.5 percent of the paid-up capital. Other large members include Libya, Indonesia, and Iran. Nigeria and Qatar are also major members. The bank is even an observer at the United Nations.

Real projects show how this work helps people every day. In Mali, there is a place called the Gao Region. For a long time, people had to use a ferry to cross the Niger River. The ferry did not always work well. This made it very hard for people to trade goods. The IsDB helped pay for the Gao Bridge. Now, this bridge connects the region to the rest of the country. It makes travel and business much easier for everyone.

The Islamic Development Bank, often called the IsDB, is a multilateral development finance institution. A multilateral institution is an organization where many different countries work together. The IsDB focuses on Islamic finance to support infrastructure development. Infrastructure development means building the essential systems a society needs, such as roads, bridges, and power grids. The bank is located in Jeddah, Saudi Arabia. It plays a vital role in helping member countries grow their economies and improve lives.

To achieve its goals, the IsDB operates through several specialized mechanisms. It provides project financing for both the public sector and private businesses. The bank also offers development assistance specifically aimed at poverty alleviation. Beyond just providing money, it provides technical assistance to build capacity in different nations. This means helping countries gain the skills and tools they need to manage their own growth. The bank also focuses on trade financing and supporting small and medium enterprises (SMEs).

The IsDB has evolved into a complex group of five distinct entities. These parts allow the bank to handle many different types of financial needs. The first is the Islamic Development Bank itself. The second is the Islamic Development Bank Institute (IsDBI). The third is the Islamic Corporation for Development of the Private Sector (ICD). The fourth is the Islamic Corporation for Insurance of Investment and Export Credit (ICIEC). Finally, there is the International Islamic Trade Finance Corporation (ITFC).

The history of the IsDB began in 1973. During that year, Finance Ministers met at the first Organisation of the Islamic Conference. This group is now known as the Organisation of Islamic Cooperation (OIC). The creation of the bank was supported by King Faisal of Saudi Arabia. The bank officially began its activities on April 3, 1975. A major milestone occurred on May 22, 2013. On that date, the IsDB tripled its authorized capital to $150 billion. This massive increase in funds allows the bank to better serve Muslims in both member and non-member countries.

Currently, the bank consists of 57 shareholding member states. To become a member, a country must be part of the Organisation of Islamic Cooperation. They must also pay their required contribution to the bank's capital. The bank is recognized globally and serves as an observer at the United Nations General Assembly. It has also earned high credit ratings of AAA from Standard & Poor's, Moody's, and Fitch. These ratings show that the bank is considered very stable by financial experts.

Ownership of the bank is shared among its members based on paid-up capital. As of May 2024, Saudi Arabia is the largest shareholder with 22.5% of the capital.

Other major shareholders include Libya at 9.03% and Indonesia at 7.94%. Iran follows closely with 7.90% of the capital. Nigeria holds 7.33%, while Qatar holds 6.87%. Egypt holds 6.77% and Kuwait holds 6.62%. The United Arab Emirates holds 6.48%, and Turkey holds 6.17%. These numbers show how much different nations contribute to the bank's resources.

The impact of the IsDB can be seen in specific infrastructure projects. For example, consider the Gao Bridge in Mali. For many years, people in the Gao Region had to cross the Niger River using a ferry. This ferry did not always operate, which made travel difficult. This situation hindered progress and made it hard for people to engage in trade. The IsDB provided the financing to build the Gao Bridge. This bridge now connects the once isolated Gao Region to the heartland of Mali. This connection helps the local economy by making transport much more reliable.

The work of the IsDB connects to many broader global systems. It links economic development with social goals like poverty reduction. By supporting trade and insurance, it helps connect different national economies. The bank also engages in research and training regarding Islamic economics and banking. This helps develop new ideas within the field of global finance. Through its many branches and programs, the IsDB remains a central part of international development.