AlUla, Kingdom of Saudi Arabia – 8 February 2026 – In a landmark move to accelerate sustainable development, the Islamic Development Bank (IsDB) today launched the IsDB Concessional Fund (ICF) at the Second AlUla Conference for Emerging Market Economies. This initiative represents a decisive evolution in the Bank’s support architecture, designed to address the urgent needs of its 27 least developed member countries (LDMCs)

Building on five decades of impactful development work, the ICF introduces a streamlined model of enhanced financing fully aligned with the IsDB Group’s Ten-Year Strategic Framework (2026-2035). The Fund deploys Shariah-compliant instruments–including multiple concessional modes of financing and targeted grants for fragile contexts–to alleviate debt burdens while catalyzing high-impact investments in human capital, food security, essential infrastructure, and climate resilience.

Allocations from the ICF are determined by a rigorous, evidence-based framework prioritizing countries with the most acute needs. This process evaluates key indicators, such as per capita income, debt sustainability, and exposure to fragility and external shocks, ensuring resources flow to LDMCs confronting the severest vulnerabilities. Funding will support high-impact initiatives that align seamlessly with national development strategies.

To ensure long-term sustainability, the ICF is backed by robust financial measures, including 20% allocation of the Bank’s annual net income and periodic replenishments from member countries.

“The ICF is more than just a financing window; it is a renewed vow that the world’s most vulnerable will not face their struggles alone,” said His Excellency Dr. Muhammad Al Jasser, Chairman of the IsDB Group, during the launch in AlUla.

Dr. Al Jasser affirmed that the Fund aims to triple the IsDB’s concessional financing to approximately 15 percent of the Bank’s annual approvals, “fostering partnerships, sharing knowledge, and unlocking co-financing that multiplies the impact of every dollar invested.”

He also emphasized that the ICF could not have been created without the significant financial and moral support of the Kingdom of Saudi Arabia and Kuwait.

“The IsDB Concessional Fund is a declaration of hope and a pledge to stand by our least developed member countries. We are here to invest in their potential and help them build a resilient, inclusive future,” he stated.

By focusing on LDMCs, the ICF not only fortifies their path toward resilience but also advances a collective vision of equitable progress where no member country is left behind.