$100bn IDB loans accelerate growth

The Islamic Development Bank has given loans worth $100 billion to member states since its inception to finance development projects, thus playing a big role in accelerating economic growth in Muslim countries, said Ahmed Mohamed Ali, its president.
He said Custodian of the Two Holy Mosques King Abdullah has agreed to open the bank’s 40th anniversary celebrations in Jeddah during June 24-26 when IDB’s board of governors will also hold their annual meeting in the city.
Ali said IDB has played a remarkable role in the economic and social development of its 56 member countries and promoting trade relations among them.
“We also play a leading role in boosting Islamic solidarity,” he added.
“I have received a message from Finance Minister Ibrahim Al-Assaf, who is chairman of the bank’s board of governors, confirming King Abdullah’s participation in the anniversary,” Ali said.
The IDB chief expressed the bank’s thanks and appreciation of King Abdullah for agreeing to patronize the bank’s annual board meeting and 40th anniversary festival in Jeddah.
Ali also commended King Abdullah and Crown Prince Salman, deputy premier and minister of defense and aviation, for their generous support to the bank. IDB formally commenced its operations on Oct. 20, 1975.
Speaking about IDB’s achievements over the past years, Ali said the number of its membership rose from 22 to 56 countries while its declared capital jumped from $3 billion to $150 billion.
“We have also grown into a group from a single organization,” the president said, adding that the Islamic Corporation for the Development of the Private Sector (ICD), Islamic Corporation for the Insurance of Investment & Export Credit (ICIEC), Islamic Research & Training Institute (IRTI), International Islamic Trade Finance Corporation (ITFC), Islamic Solidarity Fund for Development and World Waqf Foundation are its subsidiaries.
Ali said the bank has received the highest credit rating of AAA from international crediting agencies such as Standard & Poor’s, Moody’s and Fitch during the past 12 years.
The IDB chief has reiterated his bank’s commitment to further leverage its partnership with the international development community to achieve a sustained global recovery and foster social and economic progress of the poor and the underprivileged people. 
Based on the recent IMF data, the 56 IDB member countries are expected to achieve an average growth of 4.5 percent in 2014, well above the world’s average. Member countries from Sub-Saharan Africa and Central Asia regions will record a growth of 6.7 percent and 6.0 percent in 2014 from 5.8 percent and 5.9 percent in 2013 respectively.
The economic growth in the Middle East and North Africa member countries fell slightly in 2013 to an average rate of 2.5 percent due to the ongoing turmoil and the growth is expected to improve to 
3.7 percent in 2014. Growth in the Asian member countries is likely reach 4.8 percent. 
The group’s approvals stood at $10.6 billion in 2013, representing a growth of 6.1 percent over 2012 level.
Of this amount, the IDB’s Ordinary Capital Resources financed $5.4 billion while ITFC approved $5 billion, and ICD $426 million.
ICIEC’s insurance commitments totaled $2.2 billion with its business insurance operations amounting to $3.4 billion in 2013.
“One of the major characteristics that differentiate the IDB group from other development banks is that all its 56 member countries are from the developing world, including 25 countries considered as the least developed. Because of this unique membership, the IDB is viewed as an exclusive platform and/or model for South-South and Triangular Cooperation,” the president said.
The IDB is at the forefront of promoting and advancing Islamic financial services industry through partnership with governments, private sector and multilateral financial institutions. It has also been developing the Awqaf sector for charitable purposes.
It continued to facilitate the development of the sector by providing technical assistance for creating the requisite legal, regulatory, supervisory and Shariah frameworks.