Riyadh, Saudi Arabia, 20 February 2023– The Islamic Development Bank (IsDB) and the UN High Commissioner for Refugees (UNHCR) have signed a Memorandum of Understanding (MoU) to enhance cooperation on areas of common interest, as well as a Donor Contribution Agreement (DCA) for the Global Islamic Fund for Refugees (GIFR).  

The signing ceremony took place during a meeting between the IsDB Group Chairman, HE Dr. Muhammad Al Jasser, and the UN High Commissioner for Refugees, HE Filippo Grandi. “I trust that the signing of this amended and restated MoU, under which we will work together in the areas of exploring durable solutions for issues faced by refugees and internally displaced people in or from IsDB member countries, will facilitate collaboration and cooperation between the IsDB and the UNHCR,” Dr. Al Jasser said during the signing ceremony.

The MoU’s overall objective is to develop cooperation between the IsDB and the UNHCR in increasing access of refugees, internally displaced persons, and host communities to essential services, including building resilience, clean energy, education, health, shelter, civil documentation, water, and sanitation. The MoU will also help reduce poverty and improve food security and livelihood by supporting the creation of inclusive socio-economic development opportunities for refugees, internally displaced people, and host communities through income-generating activities.

A first-of-its-kind Shariah-compliant financing tool, the GIFR aims to provide innovative sustainable financial resources to support developmental and humanitarian assistance to displacement crises. The GIFR was launched with an initial capital investment by ISFD and UNHCR inviting various interested entities and individuals interested to donate to the fund.

As part of the Global Islamic Fund for Refugees, UNHCR and ISFD have both contributed US$ 50 million to the GIFR. Donors’ contributions will be invested and the proceeds from investments will be utilized to respond to forced displacement situations. Donors who contribute US$10 million or more to the Fund, will be able  to join the GIFR Steering Committee and take part in the decisions to  allocates funds in  support of humanitarian efforts in IsDB member countries, which produce and host the largest number of refugees and displaced persons in the world.

“In response to the challenges facing its member countries due to forced displacement and refugees, the Bank has developed a Fragility and Resilience Policy which defines the strategic direction for IsDB to strengthen institutions, build resilience, and contribute to social cohesion and sustainable development in its member countries,” Dr. Al Jasser highlighted.

The IsDB President noted the importance of the Joint Action Plan in helping the team members of each party to know the details of mutual engagement. Dr. Al Jasser assured the UNHCR of the Bank’s commitment to helping enhance the partnership for the benefit of the refugees in the coming years.