The Islamic Summit Conference commended, during its 14th ordinary session in Makkah, the important role of the Islamic Development Bank (IsDB) Group in promoting comprehensive development in OIC Member States, strengthening their cooperation, enhancing Islamic finance, developing infrastructure and promoting the private sector. The Conference called upon Member States to significantly increase the IsDB’s capital to enable it to meet the increasing needs of its Member States.
The Conference also took note of the IsDB’s new development model, which is based on enhancing Member States’ competitiveness by linking them to global value chains, adding value to their exports and localizing employment opportunities.
As regards the IsDB’s capital increase decision, the Summit’s communique referred to the fragile conditions that some Member States are experiencing due to internal, regional and global conflicts and disputes and noted that the situation requires the IsDB to have adequate financial resources to meet reconstruction and resilience enhancement challenges, in addition to social development needs. Therefore, the Conference decided to mandate the Board of Governors of the IsDB to issue a resolution on the required capital increase.
The Summit also stressed the important role of the Islamic Solidarity Fund for Development (ISFD), a member of the IsDB Group, in reducing poverty in Member States by promoting pro-poor development and human development.
The 4th Extraordinary Islamic Summit held in Makkah in Ramadan 1433 (August 2012), had recommended to increase the IsDB’s capital. Subsequently, the declared capital of the IsDB went from ID30 billion (US$45 billion), to ID100 billion (about US$150) and the subscribed capital went from ID18 billion (about US$27 billion) to ID50 billion (US$75 billion), in order to enable the IsDB to play its development role and meet the growing development needs in Member States.
The Board of Governors of the IsDB is expected to consider determining the new increase in the IsDB’s capital during its meeting in Jeddah in 2020.
Original source: IsDB
Published on 02 June 2019
