IsDB Annual Report

CORPORATE PROFILE OF IsDB

ESTABLISHMENT

The Islamic Development Bank (IsDB) is a Multilateral Development Bank established pursuant to Articles of Agreement signed in the city of Jeddah, Kingdom of Saudi Arabia, on 21 Rajab 1394H, corresponding to 12 August 1974. The Inaugural Meeting of the Board of Governors took place in Rajab 1395H (July 1975), and the IsDB formally began operations on 15 Shawwal 1395H (20 October 1975).

VISION

The Islamic Development Bank strives to become a world-class development bank, inspired by Islamic principles, that helps to significantly transform the landscape of comprehensive human development in the Muslim world and to restore its dignity.

MISSION

To promote comprehensive human development, with a focus on the priority areas of alleviating poverty, improving health, promoting education, improving governance, and bringing prosperity to the people.

MEMBERSHIP

The IsDB has 57 member countries across various regions. The prime conditions for membership are that the prospective country should be a member of the Organisation of Islamic Cooperation (OIC), that it pays the first instalment of its minimum subscription to the Capital Stock of the IsDB, and that it accepts any terms and conditions that may be decided upon by the Board of Governors.

ISLAMIC DEVELOPMENT BANK GROUP

The IsDB Group comprises five entities: the Islamic Development Bank (IsDB), the Islamic Development Bank Institute (IsDBI), the Islamic Corporation for the Development of the Private Sector (ICD), the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), and the International Islamic Trade Finance Corporation (ITFC).

FINANCIAL YEAR

The IsDB’s financial year used to be the lunar Hijra Year (H). However, on 1 January 2016, the financial year was changed to the Solar Hijra year starting from 11^th of Capricorn (corresponding to 1 January) and ending on 10th Capricorn (corresponding to 31 December of every year).

CAPITAL

At its 45^th Annual Meeting, the IsDB’s Board of Governors approved the 6^th General Capital Increase of ID5.5 billion. As at the end of 2023, the subscribed capital of the IsDB stood at ID55.3 billion.

HEADQUARTER AND REGIONAL HUBS

The IsDB is headquartered in Jeddah, the Kingdom of Saudi Arabia, and has 10 Regional Hubs in Abuja, Nigeria; Almaty, Kazakhstan; Ankara, Türkiye; Cairo, Egypt; Dakar, Senegal; Dhaka, Bangladesh; Jakarta, Indonesia; Kampala, Uganda; Paramaribo, Suriname; and Rabat, Morocco with a Centre of Excellence in Kuala Lumpur, Malaysia.

ACCOUNTING UNIT

The accounting unit of the IsDB is the Islamic Dinar (ID), which is equivalent to one Special Drawing Right (SDR) of the International Monetary Fund.

LANGUAGE

The official language of the IsDB is Arabic, but English and French are also used as working languages.

MESSAGE FROM THE PRESIDENT

In 2024 the Islamic Development Bank (IsDB) is commemorating 50 years of continuous development interventions aimed at promoting human dignity and advancing Islamic cooperation and solidarity. From its humble beginnings in 1974, IsDB has grown from a single entity to a group of five development entities, with a network of 10 regional hubs. Its membership has increased from 22 to 57 member countries. Its capital and annual financing approvals have also expanded significantly. Accumulated approvals from inception to the end of 2023 reached US$182.1 billion.

In 2023, IsDB started the implementation of its Realigned Strategy for 2023-2025 and introduced a Results-Based Management Framework to monitor and report transparently on implementation progress. With the Realigned Strategy, IsDB is better positioned to respond to the evolving development needs of its member countries and address the challenges of the new normal, including the impact of COVID-19, poverty reversal, food insecurity, natural disasters, and geopolitical fragmentations. The Food Security Response Program (FSRP) and Emergency Response programs complement the strategy, providing substantial financial support to member countries for recovery and resilience.

The IsDB Group approved a total financing of US$12 billion (ID9 billion) in 2023, up US$1.6 billion from the previous year. Out of the total approvals, IsDB contributed US$4.3 billion (ID3.2 billion), ITFC US$6.9 billion (ID5.2 billion), ICD US$531.7 million (ID396.3 million), ISFD US$213.6 million (ID159.0 million). ICIEC provided US$13.3 billion (ID9.9 billion) of business insurance.

IsDB’s commitment to meeting high expectations has earned it the continuous trust of its member countries, as reflected in their full subscription to the 6th General Capital Increase of ID5.5 billion and the recent Special Capital Increase of ID881.7 million (US$ 1.2 billion) by Indonesia. This robust and steady shareholder support has helped IsDB maintain an AAA credit rating for 21 consecutive years up to 2023.

Recognizing the critical role of its staff in its development mission, IsDB introduced a new Career Management Policy that provides a comprehensive framework for career progression, development, engagement, and retention. Meanwhile, efforts were made to further enhance diversity and geographical representation within the organization as well as staff well-being and equity.

In conclusion, IsDB’s 50-year journey is marked by significant growth and substantial financial commitments to meet the aspirations of its member countries. The Bank’s efforts reflect its dedication to promoting human dignity, sustainable development, and resilience in the face of evolving global challenges.

BOARD OF EXECUTIVE DIRECTORS

**Hon. Hamed Arabi Elhouderi** From: Libya
Representing: Libya 2 / 19

**Hon. Osman Çelik** From: Türkiye
Representing: Türkiye 3 / 19

**Hon. Seyed Abbas Hosseini** From: Iran
Representing: Iran 4 / 19

**Hon. Abdul Ghaffar Al Awadhi** From: Kuwait
Representing: Kuwait 5 / 19

**H.E. Dr. Hamad Sulaiman Al Bazai** From: Saudi Arabia
Representing: Saudi Arabia 6 / 19

**Hon. Dr. Nada Massoud** From: Egypt
Representing: Egypt 7 / 19

**Hon. Saeed Rashed Al-Yateem** From: United Arab Emirates
Representing: United Arab Emirates 8 / 19

**Hon. Hamad Madi Al-Hajri** From: Qatar
Representing: Qatar 9 / 19

**Hon. Dr. Mahmoud Isa-Dutse** From: Nigeria
Representing: Nigeria 10 / 19

**Hon. Eric Mbaihasra** From: Chad
Representing: Chad, Comoros, Djibouti, Gabon, Mozambique, Somalia, Uganda 11 / 19

**Hon. Malick Ba** From: Senegal
Representing: Burkina Faso, Gambia, Mali, Niger, Senegal, Togo 12 / 19

**Hon. Issa Jandi** From: Guinea Bissau
Representing: Benin, Cameroon, Côte D’ivoire, Guinea, Guinea Bissau, Sierra Leone 13 / 19

**Hon. Samir Saibi** From: Algeria
Representing: Algeria, Mauritania, Morocco, Tunisia 14 / 19

**Hon. Dr. Ammar Hamad Khalaf Ibrahim** From: Iraq
Representing: Iraq, Jordan, Lebanon, Palestine, Syria 15 / 19

**Hon. Hassan Gaffar Abdelrhman** From: Sudan
Representing: Bahrain, Oman, Sudan, Yemen 16 / 19

**Hon. Dr Kazim Niaz** From: Pakistan
Representing: Afghanistan, Bangladesh, Maldives, Pakistan 17 / 19

**Hon. Mrs. Anuska Ramdhani** From: Suriname
Representing: Brunei Darussalam, Guyana, Indonesia, Malaysia, Suriname 18 / 19

**Hon. Tamerlan Taghiyev** From: Azerbaijan
Representing: Albania, Azerbaijan, Kazakhstan, Kyrgyz Republic, Turkmenistan, Tajikistan, Uzbekistan 19 / 19

EXECUTIVE SUMMARY: A YEAR IN REVIEW

IsDB has created a legacy of tremendous accomplishments in its development journey over the last 50 years. Meanwhile, the dynamics of development challenges have also become more complicated, and the Bank has realigned its strategy to respond to this new normal. The year 2023 witnessed the successful roll-out of this Realigned Strategy. With the ongoing implementation of the Food Security Response Program, the Bank also extended emergency aid to the member countries affected by earthquakes and conflicts in 2023.

The IsDB Group approved US$12 billion (ID9 billion) for development financing, an increase of 15.3% over the 2022 total approvals. Out of this total approval amount, IsDB contributed US$4.3 billion (ID3.2 billion), ITFC US$6.9 billion (ID5.2 billion), ICD US$531.7 million (ID396.3 million), ISFD US$213.6 million (ID159.0 million), and ICIEC provided US$13.3 billion (ID9.9 billion) of business insurance. These approvals will address recovery, food security, resilience, green growth, and inclusive human development. Furthermore, the Bank implemented several activities in 2023 to reinforce institutional and financial soundness. The highlights of our operations in 2023 are outlined below.

BOOSTING RECOVERY AND FOOD SECURITY

The IsDB Group is continuing with the operationalization of the Food Security Response Program (FSRP) approved in July 2022. The amount allocated for the program is
US$10.54 billion,
plus US$500 million of credit and political risk insurance.

DRIVING RESILIENCE AND GREEN GROWTH

In terms of climate finance, IsDB has exceeded its target of a 35% climate finance share of total financial commitments by 2025, with
37%
already achieved.

BUILDING INCLUSIVE HUMAN CAPITAL DEVELOPMENT

The first pilot project under the Bank’s human capital development initiative in partnership with WFP – “Investing in the Future of Learners” – was approved for Benin through blended financing amounting to
US$25.51 million.

REINFORCING INSTITUTIONAL AND FINANCIAL SOUNDNESS

IsDB continues to nurture its most critical asset: its staff. The Bank has prepared a
new Career Management Policy
to provide a comprehensive framework for career progression, development, engagement, and retention.

The Bank’s initiatives in 2023 provided comprehensive support to member countries grappling with various challenges, including natural disasters, conflict, and fragility. In doing so, it demonstrated a commitment to being a reliable partner during critical times and fostering impactful contributions to address complex global challenges.
The Bank actively engaged in COP28, pledging US$1.0 billion for climate adaptation financing for fragile member countries. This marked a significant milestone in its efforts to address climate challenges.
In 2023, IsDB developed a greenhouse gas (GHG) accounting system and accompanying staff guidance to identify, measure, and report on operational and organizational GHG emissions, aligning with the Paris Agreement targets and Sustainable Development Goals (SDGs).
In terms of climate finance, IsDB has exceeded its target of a 35% climate finance share of total financial commitments by 2025, with 37% already achieved.
As part of efforts under the Small-Scale Renewable Energy Applications in Rural Areas program, the Bank approved US$200 million for the establishment of a new 400kV Jasra subsystem in Mauritania.
In 2023, IsDB approved 13 transport projects totaling US$1.2 billion, with the aim of developing sustainable, reliable, cost-effective, and resilient transportation systems to accelerate socioeconomic activities, growth, and poverty reduction in IsDB member countries.
A total of US$392.3 million was approved in 2023 for urban development projects, including US$298 million for peri-urban and rural housing finance in Bangladesh, US$15.3 million for the Slums Upgrading and Integrated Urban Development program in Djibouti, and US$79 million for affordable, resilient, and energy-efficient housing for underserved populations in the Kyrgyz Republic.
IsDB also embarked on a journey to reduce the digital divide in its 57 member countries, launching the Technology Deployment Cooperation Program (TDCP) to facilitate the transfer and deployment of cost-effective technologies to address development challenges and improve digital inclusion.
In partnership with Microsoft, the Bank supported the efforts of the Technology for Social Change and Development (Tech4Dev) initiative by implementing a Women Techsters Fellowship Program that aims to empower five million women across all 54 African countries by 2030.

In 2023, IsDB boosted its development financing to help deliver education for all, universal healthcare, and poverty reduction as part of its aim to build inclusive human capital in its member countries.
IsDB investments in education are aimed at driving a shift from schooling to learning. Approvals for education in 2023 reached a new high of US$420.59 million, leveraging US$71.67 million in grants including US$65 million from the Global Partnership for Education (GPE), and US$21.72 million in co-financing from Arab Coordination Group (ACG) partners.
The approvals for education include US$86 million for Tajikistan under the GPE and US$220.25 million for Uzbekistan to improve the quality and efficiency of its education services.
In addition, the first pilot project under the Bank’s human capital development initiative in partnership with WFP – “Investing in the Future of Learners” – was approved for Benin through blended financing amounting to US$25.51 million.
In 2023, the Bank awarded scholarships to 524 students from 57 countries, including 180 candidates from 27 Muslim communities in non-member countries (NMCs). As of December 2023, the scholarship program continues to support 1,804 students and scholars, with 1,321 from 98 countries studying in 68 countries, and 483 students being in the process of securing admission to start their study programs.
In 2023, IsDB approved 12 projects with US$2.64 million of funding to support education, technical and vocational education and training (TVET), and capacity development in NMCs.
In 2023, IsDB also approved US$1.4 billion for health-related projects. This included US$846 million towards health transformation in Indonesia.
In line with this, IsDB is also at the core of the New Global Financing Pact for providing health and well-being for all through universal health coverage in low- and low-middle-income countries.
IsDB supported telehealth in 2023 as a Reverse Linkage Project between Somalia and Egypt. Upon completion of the project, critically ill patients will be able to benefit from an Intensive Care Unit operated by Somalian medical staff in the East Africa University Hospital.
Furthermore, as part of its participation in the Alliance to Fight Avoidable Blindness, the Bank formulated an eyecare program aimed at empowering 10 million children in 13 African countries to fight avoidable blindness.
In 2023, US$213.6 million was approved through ISFD for poverty reduction projects in the member countries.
IsDB has also continued to facilitate the transfer of development solutions among its member countries through mechanisms such as the Technical Cooperation Programme (TCP) and the Reverse Linkage mechanism, which brings member countries together to tackle shared challenges.
IsDB approved 38 TCP operations in 2023, amounting to US$0.9 million. Meanwhile, a grant of US$2.93 million was approved for Reverse Linkage, benefiting Chad, Djibouti, Mauritania, and Mozambique in areas such as education and rural and urban development.
The Bank has intensified its efforts to mainstream regional integration into its operations. To this end, the Bank allocated US$0.96 million in 2023 to support regional integration and investment promotion and mobilized US$2.15 million for its regional integration and investment promotion operations in member countries.

In 2023, IsDB executed several institutional and financial soundness programs to reinforce its good governance and financial sustainability.
In this context, the implementation of a Bank-wide Enterprise Risk Management Project with advanced risk and finance analytics, including an integrated DataMart, reached an advanced stage in defining the institution’s capacity and willingness to bear risk exposures.
The Bank implemented the LIBOR transition project to ensure a smooth transition to alternate benchmark rates.
In 2023 IsDB completed 11 project evaluations across 10 member countries and one instance of Special Assistance, and finalized eight Corporate, Country, and Thematic evaluations initiated in 2022.
IsDB member countries have contributed to the Bank’s financial sustainability through ongoing shareholder support with multiple equity injections in the form of both General Capital Increases (GCIs) and Special Capital Increases (SCIs).
At the 2023 Annual Meeting, IsDB’s capital base was bolstered once again when the Honourable Board of Governors approved an SCI for the Republic of Indonesia amounting to a cash injection of ID881.7 million (US$1.2 billion).
High capitalization levels with very high subscription rates strengthen the financial sustainability of the Bank and reinforce its ability to withstand financial crises. This status is also viewed very positively by the global rating agencies who by 2023 had maintained IsDB’s top-tier AAA-rating for 21 consecutive years.
IsDB also continues to nurture its most critical asset: its staff. The Bank has prepared a new Career Management Policy to provide a comprehensive framework for career progression, development, engagement, and retention.
Our commitment to diversity was evident, particularly in terms of attracting skilled professionals, both males, and females, and improving geographical representation. Vacancy requisition increased 38% in 2023, with applications coming from 166 countries. Our female staff were accorded equal access to benefits such as educational grants and dependency allowances.
In 2023 the Bank resolved 1,231 compliance issues and rigorously followed up on the implementation of the Management Action Plans (MAPs). The IsDBG Administrative Tribunal became fully operational and is the highest body in the internal justice system of the Bank. The decisions of the Tribunal are final and binding.

2023 AT A GLANCE

EMERGENCY RESPONSE

A total of
US$7 million
of rapid financial assistance was given in 2023 to Türkiye, Syria, Sudan, Libya, and Morocco.

Sudan
US$1.5 million
was allocated to supporting
125,000 people
affected by the conflict in Sudan.

Türkiye
In Türkiye, more than
372,000
food packages
were distributed to
128,000 families
in response to the earthquake.

Syria
A US$2 million
project was launched in response to the Syrian earthquake, in partnership with the Qatar Red Crescent Society.

Morocco
Following the earthquake in Morocco, IsDB provided grant financing of
US$1.5 million
for emergency rehabilitation.

Libya
A US$1.5 million
package of support went to Libya in response to the floods of September 2023, providing shelter, healthcare, water and sanitation.

FOOD SECURITY

The IsDB Group’s Food Security Response Program (FSRP) is a comprehensive package worth
US$10.54 billion
with the objective of providing crucial support to IsDB member countries in combating food crises.

At the end of 2023, the total amount of financing approved for the Food Security Response Program stood at
US$4.0 billion,
representing 46% of the pledged amount under approval.

The International Islamic Trade Finance Corporation (ITFC), a member of the IsDB Group, has committed
US$4.5 billion
of the total US$10.54 billion commitment over 3.5 years (July 2022-December 2025).

HEALTH

In 2023, IsDB approved
US$1.4 billion
for health financing across
6
countries.

IsDB has allocated
US$846
Million
to a health transformation program in Indonesia,
as part of a US$4.2 billion partnership with other multilateral development banks.

As part of the Alliance to Fight Avoidable Blindness, the Bank formulated an eyecare program to empower
10 million children in
13 African countries
to fight avoidable blindness. The program will provide more than 320,000 corrective glasses for children.

INFRASTRUCTURE

In 2023, the Bank approved
US$387.9 million
for energy development.

In 2023, IsDB approved
13 transport projects
with a total value of
US$1.2 billion,
designed to develop sustainable, reliable, cost-effective, and resilient transportation systems.

Since its inception, the Islamic Development Bank Group has implemented a total of 90 ICT sector operations worth over
US$936 million.

In 2023 a total of
US$392.3 million
was approved for urban development projects.

In 2023, IsDB approved projects worth
US$365.72 million
in agriculture, water resources, and rural development.

IN NUMBERS

IsDB GROUP NET APPROVALS IN 2023

IsDB TOTAL NET INCOME FOR THE YEAR

Download 2023 At A Glance

INSIDE THE REPORT

Chapter 1

IsDB GROUP ACTIVITIES

This chapter highlights the main achievements of the IsDB Group, the umbrella organization under which sits the Islamic Development Bank (IsDB), the Islamic Development Bank Institute (IsDBI), the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the Islamic Corporation for the Development of the Private Sector (ICD), and the International Islamic Trade Finance Corporation (ITFC). While the IsDB is the main development bank, the other organizations complement its work to deliver a comprehensive range of projects and activities to support sustainable socio-economic development in its member countries.

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Chapter 2

ADVANCING INCLUSIVE, GREEN, RESILIENT,
AND SUSTAINABLE DEVELOPMENT

The IsDB is committed to ensuring that no one is left behind in the development journey of its member countries. Education, infrastructure, health, environment and gender equality are all essential components of sustainable development. In 2023, the Bank continued to address all of these aspects of development to ensure long-term, inclusive progress towards the SDGs.

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Chapter 3

REINFORCING INSTITUTIONAL EFFECTIVENESS

The IsDB’s impact and effectiveness as an organization is built on a foundation of sound internal structures and processes, including corporate governance, risk management, auditing, compliance and IT. In 2023 we continued to be meticulous in ensuring the integrity and effectiveness of all of these institutional systems.

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OPERATIONAL HIGHLIGHTS

Despite the disruptions in recent years and the emergence of new challenges during 2023, IsDB has remained resolute in providing significant financial resources to member countries to boost recovery and food security, drive resilience and green growth, and build inclusive human capital for a more sustainable future. The total net approvals of the IsDB Group have continued to rise since 2020, with increased resources being made available to member countries to help them address a growing number of challenges. The Group’s cumulative net approvals increased to US$182.1 billion in 2023 from US$170.1 billion in 2022.

As the Bank concludes its short-term COVID-19 response program, it has refocused and escalated its operations to address recovery and food security in its member countries, drive resilience and green growth, and develop inclusive human capital for a sustainable future.

In 2023, the Group’s annual net approvals increased by 15.3% to US$12 billion (ID9 billion) up from US$10.4 billion (ID7.9 billion) in 2022.

IsDB GROUP NET APPROVALS

TRENDS IN SHARE OF ENTITIES IN TOTAL IsDB GROUP NET APPROVALS

NET APPROVALS BY ENTITIES AND FUNDS

TRENDS IN IsDB GROUP DISBURSEMENTS AND REPAYMENTS

IMPLEMENTATION PROGRESS OF IsDB REALIGEND STRATEGY (2023-2025): REINVIGORATING THRUST AND TRUST

IsDB’s Governors endorsed a Realigned Strategy for the Bank during its 47^th Annual Meeting in Egypt in June 2022. Phase II of the strategic realignment process was conducted in 2022 to ensure institutional readiness in terms of organizational structure, human resources, culture, systems, and processes. Phase III was launched in 2023, and this encompassed the successful roll-out of the Realigned Strategy. Three main areas were tackled to support the roll-out process: internalizing the strategy into the Bank’s programming and project cycles; embedding the strategy in IsDB’s cultural model through improved internal communication; and leveraging the IsDB Group’s value proposition through new financing instruments.

STRATEGIC REALIGNMENT PHASES

KEY DEVELOPMENT ACTIVITIES

IsDB-OCR approval has continued to increase markedly over the years. In 2023, IsDB-OCR approval rose to US$4.3 billion from US$3.0 billion in 2022 and exceeded the annual target by 7.5%. This year’s approval covers 65 operations in 27 member countries, with the health and transportation sectors accounting for the largest shares. This reflects the increased response of the IsDB-OCR to the development dynamics prevailing in the member countries. The new approvals are expected to bring promising developmental results to member countries and to Muslim communities around the world. Highlights of anticipated results, once the 2023 approved operations are completed, include:

Polio vaccination for
41 million
children aged under 5 in Pakistan.

13
green emergency hospitals
for the population affected by the earthquake in Türkiye.

The construction and equipping of
42 classrooms
in Mozambique.

An increase of higher education capacity by
720 students
in Mauritania.

Access to equitable and quality higher education for
40,000 students
in Chad.

The provision of
1,989
multi-storied housing developments for
70,632
lower and middle-income people in Bangladesh, along with
55
climate-resilient housing developments and
39
eco-friendly housing developments.

The creation of
1,017 hectares
of hydro-agricultural development, the protection of
200 hectares
through soil conservation, and the construction of
27
village hydraulic systems in Mali.

660km
of green climate-resilient electric express railway in Egypt.
117km
of 2x2 highway in Côte d’Ivoire.

The provision of access to drinking water and sanitation for
885,000 people
in Guinea.

CONTRIBUTING TO INCLUSIVE HUMAN DEVELOPMENT

Health
In 2023, IsDB approved
US$1.4 billion
for health financing across 6 countries.

NGOs
The Tadamon initiative has made significant strides in addressing food insecurity and empowering communities in fragile and conflict-affected contexts through various programs, partnerships, and capacity-building efforts.

Scholarships
As of December 2023, the Bank had offered scholarships to a total of
19,017
students and scholars from 56 member countries and 66 Muslim communities, with a male-to-female ratio of 70%-30%.

Special Assistance
Since its inception in 1981, the Communities Outreach Program has approved
1,869 projects
totaling
US$908 million,
with 1,096 being developmental projects and 773 being relief projects.

Adahi
The government of the Kingdom of Saudi Arabia has entrusted the IsDB to implement the Kingdom of Saudi Arabia Project for the Utilization of Hady and Adahi. Having operated continuously over the past 40 years since its inception, the project came to serve more than
50%
of the pilgrims during the Hajj season of 1444H.

Women and youth
US$55.6 million
has been allocated to the implementation of six programs that aim to support women-owned/led small and medium enterprises (WSMEs) in nine countries.

In partnership with Microsoft, the Women Techsters Initiative aims to empower
5 million women
across all 54 African countries by 2030.

CLIMATE FINANCING

In 2023, IsDB developed a greenhouse gas (GHG) accounting system and accompanying staff guidance to identify, measure, and report on operational and organizational GHG emissions, aligning with the Paris Agreement targets and the Sustainable Development Goals (SDGs). This system also aids in risk management by preventing carbon lock-in and stranded assets.

In support of the principles of a Just Transition, IsDB has developed a Conceptual Framework and Action Plan 2023-2025 to facilitate a fair shift to low-emission and climate-resilient development paths for its 57 member countries as well as to support IsDB internal procedures in this regard.

IsDB has prioritized climate mainstreaming by incorporating climate change and green growth elements into Member Country Partnership Strategies and screening all approved projects and investments against physical climate risks. The Bank has also played a leading role in coordinating multilateral development bank (MDB) initiatives and engaging in global and regional climate events, such as the Africa Climate Week in Nairobi and the MENA Climate Week in Riyadh. IsDB was notably active in the United Nations Climate Change Conference (COP28) in Dubai, with a pavilion, numerous side events, and support for the UAE Presidency’s flagship events.

In terms of climate finance, IsDB has exceeded its target of a 35% climate finance share of total financial commitments by 2025, with 37% already achieved. Efforts to mobilize climate finance include partnerships with organizations such as the Green Climate Fund, Global Green Growth Institute, and International Climate Initiative. Additionally, IsDB is exploring climate finance opportunities in Islamic finance, collaborating with the UN Environment Program Finance Initiative and the General Council for Islamic Banks and Financial Institutions to develop a comprehensive climate change guide for Islamic banks in the Middle East and North Africa.

The completion of the recruitment of dedicated staff and full operationalization of the Environmental and Social Safeguards (ESS), coupled with the development of the Bank’s ESS guideline documents, will also enable the full integration of ESS into each step of IsDB’s project cycle from programming to post-completion.

Overall, IsDB’s climate action in 2023 demonstrates a comprehensive approach encompassing GHG accounting, a Just Transition, ESS integration, climate mainstreaming, and climate finance mobilization, positioning the Bank as a proactive leader in addressing climate change and promoting sustainable development.

INFRASTRUCTURE DEVELOPMENT: AGRICULTURE

The Regional Cassava Value Chain Program (RCVCP) for Africa, with
US$215 million
allocated to Phase 1 in Benin, Burkina Faso, Côte d’Ivoire, and Niger.

The Enhancing the Contribution of MSEs to Food Security project in Egypt, with
US$15 million
in funding.

The Agricultural Transformation project (Agropole Centre) in Senegal, with
US$60.58 million
in funding.

Phase 2 of the Ouagadougou Peri-Urban Dairy Sector Development project in Burkina Faso, with
US$24.24 million
in financing.

The Agricultural and Road Infrastructure Development project in Lower and Upper Ouémé Valley, Benin, with funding of
US$108 million.

Power Tiller distribution in the Gambia under the IsDB Funded Regional Rice Value Chain Project.

A project to build resilience to food insecurity through community-based irrigation in the Kaarta/Sefeto, Kita Region of Mali, with
US$19.9 million
in funding.

The Rural Water Supply and Sanitation project in the Middle and Upper regions of Guinea, with
US$40 million
in funding.

Support for the economic resilience, recovery, and productivity enhancement of earthquake-affected firms in the agriculture and agrifood sectors of Türkiye, with funding of
US$100 million.

IsDB GROUP ANNUAL MEETINGS AND GENERAL ASSEMBLIES

Chaired by the Group General Secretariat, the 2023 Annual Meeting Organizing Committee led the organization of the 2023 Annual Meetings and General Assemblies of the members affiliated to the IsDB Group. In total, eight webinars and 48 statutory meetings, knowledge-sharing events and other gatherings were held. Simultaneous interpretation in English, French, Arabic, and where necessary, Russian was provided for 38 in-person meetings and three webinars.

The 48^th Annual Meeting of the BoG was held on 12 and 13 May 2023 in the city of Jeddah, Saudi Arabia, under the high patronage of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and under the theme “Partnerships to Fend Off Crises”. The agenda adopted at the meeting comprised several items, including consideration of the 48^th IsDB Annual Report, approval of IsDB’s financial statements and affiliated funds, and the election of the BOG chairperson and two vice-chairpersons for the year 2024.

Additionally, the BoG appointed the external auditors for IsDB, the Waqf Fund, the Awqaf Properties Investment Fund, the World Waqf Foundation, and the IsDB Fund for Science, Technology and Innovation for the financial year 2024, and for the Economic Empowerment Fund for the Palestinian People for financial years 2023 and 2024.

The knowledge-sharing events held on the margins of the Annual Meeting represented an opportunity for participants to touch upon various topics of relevance to IsDB member countries, such as exploring ways of bolstering economic relations among member countries in the context of continuous and rapid changes in the international arena.

The Governors Roundtable Meeting took place on 13 May 2023, with a particular focus on the topic of “Leveraging South-South Partnerships to Fend Off Crises”. The insights and perspectives provided by the governors during the Roundtable have been assimilated by IsDB as vital strategic imperatives that will be pursued by the various IsDB departments over the coming years.

SHARI’AH GOVERNANCE

In the transformative year of 2023, IsDB undertook significant initiatives to strengthen its institutional Shari’ah Governance, including the appointment of new members to the IsDB Group Shari’ah Board and the endorsement of the International Islamic Financial Market (IIFM) Standard and Islamic Hedging Financial Instruments (Tahawwut). These actions aimed to enhance the mitigation of profit rate and currency risks in developmental operations, reflecting IsDB’s dedication to upholding Shari’ah principles across its activities. Additionally, the annual Shari’ah Audit expanded to include oversight of the Afghanistan Humanitarian Trust Fund, showcasing IsDB’s commitment to transparency, accountability, and meeting humanitarian needs.

Furthermore, the IsDB demonstrated its proactive approach to Shari’ah compliance by revitalizing its commitment to adhering to the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) International Standard on Shariah Screening of Equity Investments. The Shari’ah Affairs Division also played a crucial role in organizing workshops to educate IsDB staff, Member Countries, and Development Partners on sound Shari’ah Governance, empowering them to minimize Shari’ah non-compliance risks in developmental projects. Additionally, the Shari’ah division contributed to developing ICIEC’s Takaful Operating Framework (TOF) to enhance Shari’ah Governance over ICIEC’s Islamic Insurance (Takaful) Operations.

SHAREHOLDER SUPPORT

Since its inception, IsDB’s member countries have provided
sustained shareholder support
with multiple equity injections in the form of both General Capital Increases (GCIs) and Special Capital Increases (SCIs).

This is a strong manifestation of the
solidarity spirit and cooperation for development
in the Muslim world and this support is expected to continue in the coming years to achieve the sustainable development mandate of the Bank.

At the 2023 Annual Meeting, IsDB’s capital base was bolstered once again when the Honourable Board of Governors approved an SCI for the Republic of Indonesia which – in a strong vote of confidence in the Bank’s mission and against the backdrop of a highly challenging global economic environment – unilaterally requested to increase its shareholding in IsDB from 2.25% to 8.43% of the Capital Stock. The SCI by Indonesia, a G20 member country, would result in an additional cash injection of ID881.7 million (US$1.2 billion) (payable over 14 years) on IsDB’s balance sheet, enabling the Bank to further scale up sustainable development interventions for its member countries. This will be critical for alleviating poverty, tackling the impact of climate change, and building food security, green economic growth, and resilience.

High capitalization levels through subsequent GCIs with very high subscription rates, along with SCIs from member countries, all strengthen the financial sustainability of the Bank and reinforce its ability to withstand financial crises. They are also viewed very positively by the global rating agencies who have repeatedly stressed ‘strong shareholder support’ as one of the main factors underpinning IsDB’s top-tier AAA-rating, which the agencies have reaffirmed for more than two decades now.

IsDB is able to leverage its AAA-rating to mobilize resources from the global capital market, mainly through Sukuk issuances at optimal costs for member countries. This allows for an expanded annual operations envelope – complementing the share capital base – to cater to the growing financing needs of member countries.

HUMAN RESOURCES MANAGEMENT

In 2023, IsDB achieved significant milestones in its recruitment and workforce development, announcing 319 requisitions – a 38% increase on the previous year. This expansion was paralleled by a significant increase in global applications, reaching 45,427 from 166 countries, underscoring our appeal as a global employer. Our commitment to diversity was evident, particularly in attracting skilled professionals for C-suite roles, enhancing female, and improving geographical representation. Notably, applications from female candidates rose to 31,269 in 2022, with 14,909 received by mid-2023, and 12% of the new hires in 2023 were women, a figure that the IsDB is committed to increasing.

Applications from female candidates rose to 31,269 in 2022, with 14,909 Received by mid-2023, and
12% of the new hires in 2023 were women,
a figure that the IsDB is committed to increasing.

WHERE WE WORK

Middle East and North Africa

Algeria
Bahrain
Egypt
Iraq
Jordan
Kuwait
Lebanon
Libya
Mauritania
Morocco
Oman
Palestine
Qatar
Saudi Arabia
Sudan
Syria
Tunisia
UAE
Yemen

Asia, Latin America & Europe

Afghanistan
Albania
Azerbaijan
Bangladesh
Brunei
French Guyana
Indonesia
Iran
Kazakhstan
Kyrgyzstan
Malaysia
Maldives
Pakistan
Suriname
Tajikistan
Turkiye
Turkmenistan
Uzbekistan

Sub-Saharan Africa (SSA)

Benin
Burkina Faso
Cameroon
Chad
Comoros
Côte d’Ivoire
Djibouti
Gabon
Gambia
Guinea
Guinea-Bissau
Mali
Mozambique
Niger
Nigeria
Senegal
Sierra Leone
Somalia
Togo
Uganda

The present membership of the Bank consists of
57 countries.
Beyond our countries we also provide support to Muslim communities in non-member countries, including those afflicted by conflict and natural disasters. Altogether, our work touches the lives of
1 in 5
of the world’s population.

cherishing our past charting our future

CORPORATE PROFILE OF IsDB

ESTABLISHMENT

VISION

MISSION

MEMBERSHIP

ISLAMIC DEVELOPMENT BANK GROUP

FINANCIAL YEAR

CAPITAL

HEADQUARTER AND REGIONAL HUBS

ACCOUNTING UNIT

LANGUAGE

MESSAGE FROM THE PRESIDENT

BOARD OF EXECUTIVE DIRECTORS

EXECUTIVE SUMMARY: A YEAR IN REVIEW

BOOSTING RECOVERY AND FOOD SECURITY

DRIVING RESILIENCE AND GREEN GROWTH

BUILDING INCLUSIVE HUMAN CAPITAL DEVELOPMENT

REINFORCING INSTITUTIONAL AND FINANCIAL SOUNDNESS

2023 AT A GLANCE

EMERGENCY RESPONSE

FOOD SECURITY

HEALTH

INFRASTRUCTURE

IN NUMBERS

IsDB GROUP NET APPROVALS IN 2023

IsDB TOTAL NET INCOME FOR THE YEAR

INSIDE THE REPORT

Chapter 1

IsDB GROUP ACTIVITIES

Chapter 2

ADVANCING INCLUSIVE, GREEN, RESILIENT, AND SUSTAINABLE DEVELOPMENT

Chapter 3

REINFORCING INSTITUTIONAL EFFECTIVENESS

WHERE WE WORK

Middle East and North Africa

Asia, Latin America & Europe

Sub-Saharan Africa (SSA)

E-BOOK AND DOWNLOADS

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cherishing
our past
charting
our future

ADVANCING INCLUSIVE, GREEN, RESILIENT,
AND SUSTAINABLE DEVELOPMENT