A multilateral development finance organisation with an emphasis on Islamic finance for infrastructure development, where the IDB Full form is Islamic Development Bank is based in Jeddah, Saudi Arabia. There are 57 member states with voting rights, with Saudi Arabia being the biggest shareholder overall.
With the backing of the then-King of Saudi Arabia, Faisal, it was established in 1973 by the Finance Ministers at the first Organization of the Islamic Conference (now known as the Organisation of Islamic Cooperation), and it officially started operating on April 3, 1975.
IDB increased its allowed capital to $150 billion on May 22, 2013, to better serve Muslims in both member and non-member nations. Standard & Poor’s, Moody’s, and Fitch have assigned the Bank credit ratings of AAA. About a quarter of the bank’s paid-up capital is owned by Saudi Arabia. At the UN General Assembly, the IDB is an observer.
|IDB Full Form||Islamic Development Bank|
|Headquarters||Saudi Arabia, Jeddah|
|President||Muhammed Al- Jasser|
The Bank has 57 countries as members as of this writing. The fundamental requirements for membership are that the prospective member country belongs to the Organization of Islamic Cooperation (OIC), contributes to the Bank’s capital, and is ready to accept any terms and conditions that the IDB Board of Governors may decide upon.
Major shareholders are listed below in order of paid-up capital:
- Saudi Arabia (26.57%)
- Algeria (10.66%)
- Iran (9.32%)
- Egypt (9.22%)
- Turkey (8.41%)
- United Arab Emirates (7.54%)
- Kuwait (7.11%)
- Pakistan (3.31%)
- Libya (3.31%)
- Indonesia (2.93%)
IDB Group is involved in a variety of integrated and specialised activities, including:
- Public and private sector project funding
- Development aid for eradicating poverty;
- Technical support for enhancing capacity;
- Trade and economic cooperation among members;
- Trade financing;
- SME financing;
- Resource mobilisation;
- Investing directly in Islamic financial institutions with equity;
- Coverage for investment and export credit through insurance and reinsurance;
- Islamic banking and economics education and research.
Frequently Asked Questions (FAQs)
What is the IDB Full Form?
The IDB Full Form is Islamic Development Bank.
When is IDB started?
The IDB is started in 1975.
What is the Purpose of IDB?
In conjunction with its development partners, the IDB Group is dedicated to reducing poverty, advancing human development, science and technology, Islamic economics, banking, and finance, as well as strengthening cooperation between member nations.