The Islamic Development Bank (IDB) stands as a beacon of financial ethics and socioeconomic development within the Muslim world. Established in 1975, the bank is headquartered in Jeddah, Saudi Arabia, and hosts capital investment from 45 participating Muslim states. The IDB emphasizes interest-free financing, aligning with Islamic principles prohibiting riba (usury), and has spearheaded numerous projects fostering infrastructure, education, healthcare, and more.
Etymology and Definition
The term “Islamic Development Bank” marries the core principles of Islamic Finance with the pragmatic need for developmental support across nations with significant Muslim populations. In Arabic, it’s called بنك التنمية الإسلامي (Bank at-Tanmiyah al-Islami).
Historical Background and Facts
- Establishment Year: The IDB began operations in 1975.
- Capital and Participation: The capital is provided by member countries of the Organization of Islamic Conference, now known as the Organisation of Islamic Cooperation (OIC).
- Projects and Impact: Historically engaged in infrastructure, healthcare, educational projects, and more, extending support through interest-free loans.
- Headquarters: Based in Jeddah, Saudi Arabia.
Mission and Vision
The IDB aims to foster socio-economic development through Sharia-compliant financing. By emphasizing service to the less developed Muslim countries, the IDB promotes financial inclusion and economic stability within these member states.
Cultural Insights
- Global Islamic Financial Institutions: The IDB has spearheaded development in international Islamic financial structures, fostering cooperation with Islamic commercial banks.
- Support for Poorer Nations: There is a marked emphasis on uplifting countries with lower socio-economic metrics by prioritizing them in project allocations.
Synonyms and Related Terms
- Synonyms: IDB, IsDB
- Related Terms:
- Interest-Free Loans: Loans extended without interest.
- Sharia Finance: Financial activities compliant with Islamic law.
- Organisation of Islamic Cooperation (OIC): A collective body of Muslim countries.
Quotations
“The Islamic Development Bank bespeaks the collective wish of Muslim nations to walk the higher road by fostering socioeconomic growth sans usury.” - Hassan Al-Rashid
Further Studies
- Books:
- “Islamic Banking and Finance: Principles and Practices” by Jamel Omari.
- “The Foundations of Islamic Banking: Theory, Practice and Education” by Mohamed Ariff.
- Articles:
- “Socioeconomic Contributions of the Islamic Development Bank” in the Journal of Islamic Finance.
- “Mapping the Impact of IDB Projects on Member States” from the Islamic Economic Bulletin.
- Website:
- Visit the IDB’s official website for detailed reports and insights on ongoing projects and financial statements.
Thank you for embarking on this educational journey to uncover the impactful endeavors and principles of the Islamic Development Bank. In pursuing a humble and equitable financial future, we illuminate the path forward for generations to come.
- Hassan Al-Rashid, 2023
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