Jeddah, 25.5.09 :
The Islamic Development Bank (IDB) Group Annual Meeting will be held in Ashgabat under the patronage of the President of Turkmenistan, Gurbanukuly Bardi Muhammadov, and attended by the ministers of finance, economic affairs and planning of the 56 member countries of the IDB.

The meeting will convene on Tuesday, 9 Jumada II 1430H (2 June 2009). About 600 participants are expected to gather representing regional and international financial institutions, Islamic banks, national development finance institutions and unions of contractors and consultants from OIC member countries.
Cumulative financing approved by the IDB Group up to the end of Dhul Hijja 1429H (End of December 2008) stood at close to US$57 billion. It was allocated for project finance, technical assistance, trade finance among IDB member countries; 1.2% of the amount were in the form of grants to Muslim communities in non-IDB member countries to help finance their educational and health projects given the fact that such communities are an integral part of the Ummah.

During the IDB Group annual event, the following meetings will take place: the 34th annual meeting of the IDB Board of Governors, the 16th annual meeting of the Board of Governors of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and the 9th General Assembly meeting of the Islamic Corporation for the Development of the Private Sector (ICD). Also during the same period, the Board of Governors of the International Islamic Trade Finance Corporation (ITFC) will also hold its 4th meeting.

ICIEC, ICD and ITFC are three autonomous institutions that the Group established to enhance investment, develop the private sector and promote trade in member countries.
The 2nd meeting of the Board of Governors of the Islamic Solidarity Fund for Development (ISFD) will also take place. The ISFD became formally operational last year after was formally established during the annual meeting of the IDB Board of Governors that took place in Dakar, Senegal on 29 – 30 May, 2007 (see appendix for a brief on each member of the IDB Group, including the ISFD).
A number of events will take place alongside the meeting such as the 19th IDB Annual Symposium, which centers this year on “Shaping the Post Crisis World: Regional Implications and Coordinated Responses by Member Countries”. A number of eminent economists will participate in the symposium. In the light of the conclusions of the G20 Summit held in the beginning of April 2009 in London, the meetings of the World Bank and the International Monetary Fund (IMF) as well as other major gatherings, ways of addressing the repercussions of the global financial crisis on the economies of IDB member countries will be discussed.
The 1429H (2008) IDB prize for Islamic banking will be presented to its winner, whose name will be officially made public on Sunday, 10 May 2009 in recognition of his/her outstanding effort to develop Islamic economics as a concept and discipline.
The 1430H (2009) IDB prizes for science and technology will also be awarded to three academic institutions, namely, Betra University, Selangor, Malaysia, in recognition of the University’s outstanding effort in publishing a huge number of scientific periodicals; the Physics Department of the Middle East University, Ankara, Turkey, in recognition of the Department’s role in producing and publishing a large number of significant research papers on physics in several international periodicals; the International Research Centre on Diarrhea, Dacca, Bangladesh, in recognition of the Centre’s outstanding academic achievements in child healthcare and contagious disease prevention, especially diseases that cause diarrhea, cholera and many diseases. Each winner will receive a prize money of US$ 100,000 and a certificate of recognition.
As part of the Bank’s effort to contribute to women’s development, the 1430H (2009) IDB Prize for “Women in Development” (for individuals) will be presented to its winner, Mrs. Nadia Ahmad Abu Fatuh of Egypt, in recognition of her outstanding efforts in promoting social services for women. One of most prominent activities is to have established and run a programme on a form of blindness among girls and the poor in Dumyat, Egypt. The prize money is US$ 50,000.
However, the IDB Prize for Non-Governmental Women’s Organizations of US$100,000 was not awarded this year because the requirements for the Prize were not met.
The Board of Governors will review the IDB 34th Annual Report, approve its audited accounts, its programmes and its specialized funds. The Board will also appoint external auditors for next year. It will also consider the percentage allocated from the Bank’s net income for technical assistance and the Merit Scholarship Program for member countries. It will appoint the Procedures Committee for the 35th annual meeting, which will be held in Bakou, Azerb aijan.
The Muslim communities in non-member countries also receive the Bank’s special attention. As a result, it provides it, from the IDB Waqf Fund, with assistance to help achieve economic and social development. It has so far provided them with a total of US$ 245 million to help finance 810 development projects in the education and health sectors in 67 communities. The Bank has also provided member countries victims of natural disasters such as earthquakes, floods, drought, with grants and emergency assistance worth about US$ 430 million from the Waqf Fund.
As part of its support for Muslim communities in non-member countries, the Bank established a scholarship program in 1404H (1983) for students of these communities to pursue university studies in medicine, engineering, pharmacy, agriculture, science and computer science. The number of beneficiaries from the program by the end of Rabi II 1430H (April 2009) stood at 9637 students from 60 countries. 5659 students have so far graduated in various academic disciplines. The Bank has so far spent on the programme a total amount of US$ 71 million.
Apart from the Bank’s support for economic and social development in various sectors, the Bank gives special attention to greater trade among its member countries because trade is the real indicator of effective cooperation and the mainstay of growth and progress. The Bank approved until Rabi II, 1430H (April 2009) a total number of 2203 trade operations for member countries (imports and exports) worth US$ 32.2 billion.
The Bank’s membership at its inception was 22 but has increased over the years to now stand at 56.
In its December report, Standard & Poor’s, a major credit rating agency, stated that the IDB had maintained a long term credit rating of AAA for the seventh year in a row and a short term credit rating of A-1+. The agency also rated the IDB’s future outlook as “stable”. The IDB has now received the highest credit rating from all the three major credit rating agencies. Apart from Standard & Poor’s, Moody’s and Fitch have given the Bank again their highest credit rating. The Basil Banking Supervisory Committee in 2004 and the European Parliament in 2007 also included the Bank in the list of zero risk development institutions. On the strength of these strong ratings, the Bank can mobilize immense resources from international financial markets at low costs. This is further demonstration of the IDB’s solid financial position and has boosted the Bank’s confidence in its efforts to help enhance development in its member countries.
The Islamic Development Bank is a leading example of joint Islamic action and a role model of South/South cooperation as well as fruitful cooperation among its member countries in a bid to overcome the challenges of development, boost their economic and social progress and work together with them for a better future for their coming generations. In order to achieve such an objective, the Bank makes sure that it regularly reviews its policies and procedures so they are in line with global developments.

AN OVERVIEW OF AFFILIATES AND PROGRAMS OF THE IDB GROUP
-----------

1. Islamic Corporation for Insurance of Investment and Export Credit (ICIEC)

Its objective is to encourage and promote trade and investment flows among member countries through insurance and reinsurance of investment and export credit in accordance with Shari’ah. The cumulative insurance commitments approved by ICIEC in 1429H (2008) stood at US$ 5.1 billion.
The cumulative insurance commitments approved by ICIEC since its inception in July 1995 until Rabi I 1430H (March 2009) stood at US$ 5 billion.
ICIEC was rated Aa3 in 2008 by Moody’s, the international rating agency, putting it on par with international export insurance providers. This rating enables ICIEC to enter into joint operations with major international insurance corporations.
2. Islamic Corporation for the Development of the Private Sector (ICD)
ICD is an autonomous international financial institution established by the Bank to develop the private sector in member countries through financing its projects. ICD’s nominal capital is US$ 1 billion and its capital open for subscription is US$ 500 million.
The number of development projects approved by the ICD as of Rabi II 1430H (April 2009) stood at 168 worth US$ 1245 million for 32 ICD member countries.
3. International Islamic Trade Finance Corporation (ITFC)

The ITFC is an autonomous entity of the IDB Group, whose role is to finance and promote trade among member countries. Its authorized capital is US$ 3 billion and a capital open for subscription up to US$ 750 million. Since it started its operations on 10.01.2008 up to April 2009 trade financing operations (imports/exports) stood at 99 for 29 member countries. Trade operations financed by the Bank for over three decades before the ITFC was established stood at 2104 for an amount of about US$ 29.5 billion.
4. Islamic Solidarity Fund for Development (ISFD)

ISFD was established pursuant to the Makkah Extraordinary Islamic Summit Resolution in 1426 (December 2005) to address the causes and alleviate the effects of poverty, create employment opportunities, combat diseases and increase education opportunities in OIC member countries. These objectives have constituted the Bank’s priorities since its inception.
It was announced in Rabi I 1429H (March 2008) that the ISFD had approved its first two programs, namely the Vocational Training Program for Poverty Alleviation (VOLIP) and the Micro Enterprises Support Program (MESP). The programs require financing of US$ 1 billion over the next 5 years – i.e US$500 million each. The programs will address the most important causes of poverty through literacy, vocational training for working women and non-school attending adolescents and provision of micro finance to needy families.

5. Awqaf Properties Investment Fund (APIF)

APIF was established pursuant to the resolution issued by the 6th meeting of Awqaf Ministers in OIC member countries held in Jakarta in 1997. The fund aims at enhancing the development role of Awqaf and activating the Waqf Sunnah as am effective tool of economic, social and cultural development in Muslim communities. This will be achieved through development of and investment in Awqaf properties. Up to the end of April, 2008 APIF approved financing for 31 projects worth about US$ 608 million.
5. International Center for Bio-saline Agriculture (ICBA)

ICBA was established in 1999 in collaboration with the United Arab Emirates and the Bank. It aims at developing sustainable agricultural systems using saline water to grow salt tolerant fodder, crops, trees and plants.
6. Islamic Research and Training Institute (IRTI)

IRTI was established in 1401H (1981) at IDB headquarters in Jeddah with the objective of undertaking research for enabling the economic, financial and banking activities in Muslim countries to conform to Shari’ah, and to extend training facilities to personnel engaged in economic development activities in the Bank’s member countries. Up to the end of April 2009, IRTI published a total of 295 specialized research papers and reports, and organized more than 229 symposiums and workshops. In addition, it conducted 382 training programs benefiting about 11307 trainees from member countries.
7. World Waqf Foundation (WWF)

The Bank established the WWF in Jumada II 1422H (September 2001) with the aim of reviving the Waqf Sunnah and increasing Awqaf participation in development programs in member countries. One distinctive feature of the WWF is that participation is open to individual philanthropists as well as to institutions and societies. One of its functions is to serve as a trustee for new and old Awqaf entrusted to it by Waqifs to invest and manage the properties and expend the returns in accordance with Shari’ah principles and rules.

The Bank’s Efforts to Transfer Technology to Member Countries.

The Bank’s role is not confined to providing resources for financing projects but extends to helping to transfer technology and build the technical capacities of member countries for development. To achieve this objective, it has established the following programs:
1. Technical Corporation Program

This program was established in 1403H (1983) to provide technical assistance to member countries and facilitate exchange of expertise and information among them. Up to the end of 2008, the program organized 618 workshops, held 719 training courses and facilitated exchange of 393 experts. Most member countries benefited from the program. The total amount approved for these activities to date exceeded US$ 40 million.
In 1418H (1997) the Bank established the Non-Governmental Organizations Unit and Women in Development under the Technical Cooperation Program. The Unit focuses on upgrading the performance of non-governmental women organizations through training and capacity building. During 1429H (2008), 27 capacity building projects worth US$ 1.4 million were approved for individuals and organizations in 30 member countries. The Bank also approved a program for combating blindness in member countries at a total cost of US$ 9.5 million. The program’s target over a period of five years 50,000 surgical operations to restore eyesight in eight countries in Sub-Saharan Africa.

2. Merit Scholarships Program in Science and Technology

The Bank established this program in 1411H as part of its efforts to enable member countries meet their needs in the areas of science and advanced technology. The program offers scholarships to distinguished researchers from member countries to conduct research in 16 areas of specialization. Up to April 2009, the program offered 470 scholarships to researchers in 300 academic and research institutions for the benefit of 48 member countries and in 5 Muslim communities in non-member countries. To date, 220 scholars have completed their research and graduated. So far the Bank has spent US$ 16 million on the program.
3. M. Sc. Scholarship Program in Science and Technology for the Least Development Member Countries (LDMCs)
This program was established in 1419H (1998) to offer scholarships for studies in science and technology specializations required for national development in LDMCs. Up to April 2009, the program offered 255 scholarships in the areas of medicine and medical sciences, engineering and computer sciences to eligible men and women. To date 113 students from 18 least developed member countries have benefited from the program. Approval under the program amounted to US$ 1.5 million.
4. IDB Vision 1440 (2020)

In order to keep abreast of the global economic developments and meet the urgent needs of its member countries, which face huge economic challenges, the Bank established a high level commission under the chairmanship of Dr. Mahatir Muhammad, the former Prime Minister of Malaysia to chart a future course for the IDB Group: In March, 2006 the commission submitted its document entitled “IDB Vision 1440H (2020)” to a meeting organized by the Bank in Kuala Lumpur for this purpose. The Bank has started to implement the recommendations of the commission in order to make the IDB Group a world-class institution built on knowledge.
As part of its efforts to implement the recommendation under the IDB Vision, the Bank has approved a number of urgent programs such as the Roll-back Malaria Program approved for five countries, namely, Sudan, Senegal, The Gambia, Mauritania and Chad. The programs for Sudan and Senegal are now under way. There are also other programs, which may be completed by the middle of this year. As part of the efforts to implement the Education Excellence Program, three universities have been identified and are being upgraded to world-class universities. A general road map has also been worked out for academic excellence.
Under programs designed to boost the database for Islamic modes of financing, a feasibility study is currently being conducted on Zakaat, Waqf and micro finance institutions in four member countries in association with competent institutions. The Bank is in the process of determining the needs of these countries in order to establish and enhance micro finance institutions in the four countries in question and thus lay the groundwork for the implementation of this program shortly.