Islamic Development Bank Group (IDB) is an international financial institution established to foster the economic development and social progress of member countries and Muslim communities individually as well as jointly. IDB was established in pursuance of the Declaration of Intent issued by the Conference of Finance Ministers of Muslim Countries held in Jeddah. It operates as a multilateral development bank.
The following are the major functions of IDB:
- To participate in equity capital;
- Grant loans for productive projects and enterprises;
- Financial assistance to member countries
- Provide assistance to muslim communities in non-member countries;
- Setting up trust funds;
- Accept deposits and mobilize financial resources through Shari’ah compatible modes.
- Assist in the promotion of foreign trade especially in capital goods, among member countries;
- Extent training facilities for personnel engaged in development activities in Muslim countries to conform to the Shari’ah.
The basic condition for membership in IDB is that the prospective member country should be a member of the Organization of the Islamic Conference, pay its contribution to the capital of the IDB and be willing to accept terms and conditions decided by the IDB’s Board of Governors. The present membership of IDB consists of 56 countries.
IDB’s principal office is in Jeddah in the Kingdom of Saudi Arabia. Four regional offices were opened in Morocco, Malaysia, Kazakhstan, and Senegal.