QUESTIONS AND ANSWERS
1426H
2005
TABLE OF CONTENTS
ABBREVIATIONS
15
GENERAL BACKGROUND
18
1.
2.
3.
4.
5.
6.
7.
8.
What is Islamic Development Bank (IDB)?
How was it established?
When did it start functioning?
What are its main objectives?
Which countries are entitled to become members
of IDB? How may have joined the Bank?
What is the authorized capital of the Bank?
What is its subscribed capital?
What must a country subscribe to the Bank's?
share capital upon joining?
Which are the main shareholders of the Bank?
Does the Bank interfere in the affairs of member
countries?
What is the Bank’s relationship with the
Organization of the Islamic Conference (OIC)
and its various committees and affiliated
organizations?
18
18
19
19
19
19
20
20
ORGANIZATION AND FUNCTIONS
9.
10.
11.
12.
How is the Board of Governors constituted?
What is its role?
How is the Board of Executive
Directors constituted? What is its role?
What is the organizational structure of IDB?
What are the major channels of Communication
with member countries?
1
20
21
22
22
13.
14.
Does IDB have regional offices? What are
their main functions?
What are the official and working languages
of the Bank?
22
23
STAFFING
15.
16.
17.
How does the Bank recruit its staff?
Is there a quota system for recruitment of staff?
What is the current staff strength of the Bank?
What categories of experts and specialists does
the Bank employs?
23
24
24
SHARI’AH AND ISLAMIC MODES OF FINANCING
18.
19.
20.
21.
22.
23.
What is shari'ah? Which are the principles
of Shari’ah that apply to Islamic Banking?
How does the Bank ensure that its operations
conform to Shari’ah?
What are the different modes of financing
currently followed by the Bank?
What is service fee? How does it defer from
interest charges?
Are there upper limits to the amount of service
fee charged on loans?
What is mark-up? How is it different from
Interest?
24
25
25
27
28
28
PROJECT FINANCING
24.
25.
26.
27.
What are the main operational activities
of the Bank?
Does IDB get involved in co-financing?
In addition to project financing, what other
Financing schemes are offered to the private
sector?
Does IDB cooperate with Non-Governmental
Organizations (NGOs)?
2
28
29
30
30
28.
29.
30.
Some member countries are able to get
a higher level of IDB financing as compared
to others. Why?
What are Least Developed Member
Countries (LDMCs )? What assistance does
the Bank provides to the LDMCs?
Does the Bank carry out post-evaluation
(or assessment) of its projects?
How does it learn from past experiences?
30
31
32
OPERATIONAL POLICIES AND PROCEDURES
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
Who can apply for project financing? What
are the procedures to be followed?
What are the Bank’s criteria for selection of
projects for financing?
Does the Bank finance cost overrun on
IDB-financed projects?
How does the Bank assist in the development
of the private sector?
Does the Bank finance feasibility studies for
private sector projects?
What support is extended to small and
medium-scale enterprises by the Bank
through NDFIs?
What criteria does the Bank apply while
approving a line of financing to an NDFI?
Are financing procedures and policies different
for private and public sectors?
Does the Bank consider environmental factors
in its decision to finance a project?
What is the role of the Bank in alleviating Poverty?
Does the Bank take into consideration the
Special needs of women in development?
What is the extent of IDB’s involvement in natural
disasters and calamities?
3
32
33
34
34
34
35
35
35
36
36
36
37
PROJECT IMPLEMENTATION
43.
44.
45.
46.
47.
48.
49.
What types of guarantees are acceptable to the IDB?
Does IDB maintain a list of approved
guarantor banks? How does IDB evaluate
a new guarantor bank?
Does the Bank give preference to procurement of
goods and services from member countries?
How are prospective suppliers of goods and
Services kept informed of IDB financed projects ?
Does the Bank give preference to member
country experts and consulting firms?
Who is responsible for evaluating the bids
and approving contracts?
Under what circumstances can the beneficiary
award a contract to a higher-cost bidder?
37
37
38
38
39
39
39
TECHNICAL COOPERATION
50.
51.
52.
53.
54.
55.
56.
What is the IDB Technical Cooperation Programme?
Why was the IDB Technical Cooperation Office
established?
What is the Role of IDB in Technical Cooperation
Programme?
What are the TCO Focal Points and Donors?
What is the Tripartite Cooperation?
What are the New Priorities for Technical Cooperation
Office?
What is the difference between the Technical
Assistance and the Technical Cooperation Programme
of the Bank?
40
40
40
40
40
40
40
COOPERATION OFFICE
57.
58.
59.
What is the main objective and purpose of the
Cooperation Office?
What are the roles and functions of the OIC Unit?
What are the roles and functions of the WTO Unit?
4
41
41
42
60.
What are the roles and functions of the International
Institutions Unit?
43
SCIENCE & TECHNOLOGY OFFICE (STO)
61.
62.
63.
64.
Why a Science & Technology Office at IDB?
What is the mission of the STO?
How does STO operate?
Who are STO's partners?
44
45
45
46
TRADE PROMOTION
65.
66.
67.
68.
69.
70.
71.
How does the Bank contribute to promotion
of trade among member countries?
Are there any annual allocations for member
countries under the trade financing scheme?
How is the Bank helping its member countries to
prepare for the new global trading environment
environmental in the post-Uruguay Round period?
What is the IDB's Export Financing Scheme (EFS)? .
Who manages the Scheme and what are its
Resources?
What are the salient features of the financing
Provided by the Scheme?
What are the procedures for utilization of the
facility under the Scheme?
46
47
48
48
48
49
49
FINANCIAL MANAGEMENT
72.
73.
74.
75.
76.
What are the Ordinary Capital Resources of the Bank?
Islamic shari’ah prohibits interest on loans.
How does the Bank earn income?
How does the Bank mobilize resources beyond?
its share capital?
What currencies does the Bank use for disbursement
of funds and for accepting repayment? How does it
determine the exchange rates?
How does the Bank utilize funds that are
not needed for immediate disbursement?
5
50
50
50
50
51
77.
What are the measures taken by the Bank to
control overdues?
51
IDB INFRASTRUCTURE FUND
78.
79.
80.
81.
82.
83.
84.
85.
86.
What are the objectives of the Fund?
Is there a need for this Fund?
What is the size of the Fund?
Is this Fund adequate to meet these needs?
What is the Financial Structure of the Fund?
What is the Organizational Structure of the Fund?
Why is the IDB not directly involved in
Managing the Fund?
What is the Experience of Fund Manager?
52
52
52
52
52
53
53
53
87.
88.
89.
90.
91.
92.
What is the performance of the Principal
Advisor of the Fund?
What is the performance of the Advisor of the Fund?
What is the Fee Structure?
What is the Sect oral Focus of the Fund?
What are the Investment Criteria of the Fund?
What is the nature of investments?
How are the investment diversified?
54
54
54
55
55
56
56
93.
94.
What are the Exit Strategies?
What is the Jurisdiction?
56
56
SPECIAL ASSISTANCE PROGRAMME
95.
96.
97.
98.
99.
100.
What are the objectives of the Special
Assistance Programme of the Bank?
Does IDB offer scholarships and what are they?
What is Scholarship Programme for Muslim
Communities?
What is Merit Scholarship Programme ?
What is M.Sc. Scholarship Programme?
How do we obtain the Application forms and
Further information?
6
57
57
58
58
58
59
ISLAMIC RESEARCH AND TRAINING
INSTITUTE (IRTI)
101.
102.
103.
104.
105.
What are the objectives of the Islamic
Research and Training Institute (IRTI)?
59
How are participants in Rita's training
Programmes selected?
What type of research is conducted by IRTI?
How does IRTI assist Islamic scholars?
What is the Visiting Scholars Scheme?
What is the IDB Prize? What are the criteria
for nomination?
60
60
61
61
ASSETS MANAGEMENT DEPARTMENT (AMD)
106.
107.
108.
109.
110.
What is the Assets Management Department?
Who can subscribe to the Funds?
What are the general features of the Fund?
What are the main modes of AMD financing?
How are AMD's investments approved?
62
62
63
63
63
RISK MANAGEMENT AND CONTROL
111.
What is Risk Management Governance in IDB?
62
112.
113.
What is the Risk Management Strategy in the IDB?
What are the major risks faced by the IDB?
62
63
OICNETWORKS, PLC
114.
115.
116.
117.
What is the OICNetworks, plc?
What are the major Business Areas of OIC
Networks Private Limited?
How can you access the OICExchange Poetal?
Does the Bank have its own Group Web Site?
What does the site display?
64
64
64
65
AL-QUDS INTIFADA FUND AND AL-AQSA FUND
118.
What are Al-Quds Intifada Fund and
Al-Aqsa Fund?
65
7
119.
120.
What are the objectives Al-Quds Intifada Fund and
Al-Aqsa Fund, and what is the capital of each Fund?
How the two Funds will be managed?
65
66
ISLAMIC CORPORATION FOR INSURANCE
OF INVESTMENT AND EXPORT CREDIT (ICIEC)
121.
122.
What is the purpose of the Islamic Corporation
for the Insurance of Investment and Export
Credit (ICIEC)?
How can ICIEC help exporters in member countries
expand their exports?
66
67
ISLAMIC CORPORATION FOR THE
DEVELOPMENT OF THE PRIVATE SECTOR (ICD)
123.
124.
125.
126.
127.
128.
129.
130.
131.
132.
133.
134.
135.
136.
What is the Islamic Corporation for the
Development of the Private Sector (ICD)? How
did it start is operations?
67
What is the mission of the ICD?
What is the vision of the ICD?
What are the main objectives of the ICD?
Which countries are entitled to become members
of the ICD? How many have joined the ICD?
67
68
68
Are public and private companies entitled to become
shareholders of the ICD?
What is the capital structure of the ICD?
How many share must a country subscribe to the
ICD's share capital upon joining the Corporation?
What is the organizational structure of the ICD?
Does the ICD have the same Board of
Directors as the IDB?
What are the products and services of the ICD?
What are the operating principles of the ICD?
69
What are the modes of financing of the ICD?
What are the types of projects eligible for
financing by the ICD?
72
8
68
69
69
70
71
71
72
73
137.
138.
139.
140.
141.
142.
143.
What are the criteria of eligibility for ICD
Financing?
What types of collateral does ICD require?
What is the unit of account and operation?
What is the project information required for
ICD financing?
Does the ICD contribute in the financing of enterprises
and small and medium-scale enterprises?
Can the ICD co-finance projects with nonIslamic financing institutions?
What are the contact details of the ICD?
74
74
74
74
75
75
75
INTERNTIONAL ISLAMIC RATING AGENCY (IIRA)
144. What is the International Islamic Rating Agency?
145. What are the objectives of the IIRA?
146. What are the main sponsors of the IIRA?
147. What are the contact details of IIRA?
76
76
77
77
INTERNTIONAL CENTER FOR BIOSALINE
AGRICULTURE (ICBA)
148. What is the International Center for Biosaline
Agriculture?
77
149.
150.
What are the objectives of the International
Center for Biosaline Agriculture?
What are the benefits of the International
Center for Biosaline Agriculture?
WORLD WAQF FOUNDATION (WWF)
151. What is the World Waqf Foundation (WWF)?
152. What are the purposes of the World Waqf Foundation?
153. What are the regions where the World Waqf
Foundation operates in?
154.
155.
77
78
78
79
79
Who are the personalities and institutions that are
likely to deal with the World Waqf Foundation?
80
In what ways is the WWF considered an addition to
the existing institutions operating in field of Waqf?
80
MISCELLANEOUS
9
156.
157
What is the Sacrificial Meat (Adahi) Utilization
Project?
How can one obtain the publications of the
Bank/IRTI?
MEMBER COUNTRIES AND DATE MEMBERSHIP
10
82
82
ABBREVIATIONS
AFRISTECH
African Foundation for Science & Technology
AMD
Assets Management Department
AAOIFI
Accounting and Auditing Organisation for Islamic Financial
Institutions
APIF
Awqaf Properties Investment Fund
BMA
Bahrain Monetary Agency
BOO
Build, Own & Operate.
BOOT
Build, Operate, Own & Transfer
BOT
Build, Operate & Transfer
CASS
Country Assistance Strategy Study
CFF
Complementary Finance Facility
COMSEC
OIC Standing Committee for Economic and
Commercial Co-operation
COMSTECH
OIC Ministerial Standing Committee for Scientific and Technological
Co-operation
CRAT
African Regional Center for Technology
ECA
Export Credit Agency
EFS
Export Financing Scheme
EMP
Emerging Markets Partnership
ESCWA
Economic and Social Commission for West Asia
IAS
Islamic Academy of Sciences
IBP
Islamic Banks’ Portfolio
ICBA
International Center for Biosaline Agriculture
ICD
the Private Sector
Islamic Corporation for the Development
11
of
ICIEC
Islamic Corporation for the Insurance of
Investment and Export Credit
ID
Islamic Dinar
IDB
Islamic Development Bank
IFC
International Finance Corporation
IICG
Islamic Investment Company of the Gulf
IIFTIHAR
International Islamic Forum for Science, Technology and Human
Resources Development
IIRA
International Islamic Rating Agency
IMF
International Monetary Fund
IRR
Internal Rate of Return
IRTI
Islamic Research and Training Institute
ISESCO
Islamic Education, Science & Culture Organisation
ITC
International Trade Center
ITFO
Import Trade Financing Operations
IUT
Islamic University of Technology
LDMCs
Least Developed Member Countries
NDFIs
National Development Financing Institutions
NGOs
Non-Governmental Organisations
OEO
Operations Evaluation Office
OIC
Organisation of the Islamic Conference
OICIS-NET
OIC Information Systems Network
PMC
Policy Management Company
SDR
Special Drawing Right
STO
Science & Technology Office
TA
Technical Assistance
TCP
Technical Co-operation Programme
12
UIF
Unit Investment Fund
UNCTAD
United Nations Conference on Trade & Development
UNDP
United Nations Development Programme
UNESCO
United Nations Education, Science and Culture Organisation
WIPO
World Intellectual Property Organisation
WTO
World Trade Organisation
WWF
World Waqf Foundation
13
QUESTION AND ANSWERS
General Background
1.
What is Islamic Development Bank (IDB)?
How was it established? When did it start functioning?
The Islamic Development Bank (IDB) was established by the first conference of
Finance Ministers of member countries of the Organization of the Islamic Conference
(OIC), convened on 24 Dhul Qa'da 1393H (18 December 1973). Its purpose is to foster
economic development and social progress in member countries and Muslim
communities worldwide based on the principles of shari'ah (i.e. Islamic jurisprudence).
The Bank commenced its activities officially on 15 Shawwal 1395H (20 October 1975).
2.
What are its main objectives?
In line with its overall objectives of fostering economic development and social
progress, the Bank finances productive projects and programs in both public and private
sectors in member countries. It invests in economic and social infrastructure projects,
provides technical assistance to member countries and assists in the promotion of
foreign trade, especially capital goods. The Bank also assists Muslim communities in
non-member countries and undertakes shari’ah-based research studies in Islamic
economics and banking through special funds established for this purpose.
IDB finances development projects in member countries through a number of
shari’ah-compatible modes such as Loan, Leasing, Instalment Sale, Istisna'a, Equity
Participation, Lines of Financing, etc. Besides, its trade financing schemes, such as
Import Trade Financing Operations (ITFO), Export Financing Scheme (EFS), and
Islamic Banks’ Portfolio (IBP), Unit Investment Fund (UIF), etc., promote trade among
member countries.
3.
Which countries are entitled to become members of IDB? How many have joined
the Bank?
All member countries of the Organization of the Islamic Conference (OIC) are
entitled to become members of IDB. The present membership of the Bank stands at
fifty-six spreads over four continents, viz., Africa, Asia, Europe and Latin America.
4.
What is the authorized capital of the Bank? What is its subscribed capital?
14
As of Shaban 1422H (November 2001), the authorized capital of the Bank was
raised to Islamic Dinar (ID) 15 billion and the subscribed capital to ID 8.1 billion.
What must a country subscribe to the Bank’s share capital upon joining?
5.
Upon joining the Bank, a country should subscribe a minimum of 250 shares
having a par value of 10,000 Islamic Dinars each.
6.
Which are the main shareholders of the Bank?
At present, on the basis of paid-up capital, the following seven countries are the
main shareholders of the Bank: Saudi Arabia, Kuwait, Libya, Turkey, UAE, Iran and
Egypt.
7.
Does the Bank interfere in the affairs of member countries?
The Bank is a developmental institution. It does not take any political stand nor
does it interfere in the political affairs of member countries.
What is the Bank’s relationship with the Organization of the Islamic Conference
(OIC) and its various committees and affiliated organizations?
8.
The IDB is one of the specialized organs of the OIC. Specialized organs usually
have their own governing Boards independent of the OIC governing machinery. The
Bank is a permanent observer in all meetings and committees of the OIC. It cooperates
closely with other subsidiary, specialized, and affiliated organs. However, being an
economic organization, the Bank has a special relationship with the Standing
Committee for Economic and Commercial Cooperation (COMCEC).
ORGANIZATION AND FUNCTIONS
9.
How is the Board of Governors constituted? What is its role?
Each member country is represented on the Board of the Bank by a Governor and
an Alternate Governor. Each member has five hundred basic votes plus one vote for
every share subscribed. Generally, decisions are taken by the Board of Governors based
on a majority of the voting power represented at the meeting. The Board of Governors
meets once every year to review the activities of the Bank for the previous year and to
decide future policies. In its annual meeting, the Board designates a Chairman, who
*
The Islamic Dinar, which is the unit of account of the Bank, is equal to one SDR (Special Drawing Right) of the
International Monetary Fund. The value of the SDR is based on a basket of currencies, which, in August 1999,
comprised: US Dollar (45%), Euro (29%), Japanese Yen (18%), French Franc (15%) and Pound Sterling (11%).
15
holds office until the election of another Chairman at the next Board meeting. The
Board of Governors is the highest policy-making body. It can delegate powers to the
Board of Executive Directors for the general operation of the Bank. However, only the
Board of Governors can deal with issues relating to membership, increase or decrease in
the Bank’s authorized capital, authorize cooperation agreements with international and
regional organizations, election of the President and Executive Directors, and their
remuneration.
10.
How is the Board of Executive Directors constituted? What is its role?
At present, the Board of Executive Directors is composed of fourteen members,
seven of whom are appointed and seven elected. The seven member countries with the
largest shareholding appoint one Executive Director each. The other member country
Governors elect the remaining seven Executive Directors. The President is the Chairman
of the Board of Executive Directors. The Directors hold office for a period of three
years and may be re-elected.
Each member of the Board is entitled to cast the number of votes that counted
towards his election and these need not be cast as one unit. Generally, decisions are
taken by majority vote based on the voting power present at the Board meeting.
The Board of Executive Directors is responsible for the general operation of the
Bank and, in particular, to:
11.
-
prepare the work of the Board of Governors
-
take decisions concerning the Bank’s business and its operations in conformity
with the general directions of the Board of Governors
-
submit the annual accounts for approval of the Board of Governors
-
approve the Bank’s budget.
What is the organizational structure of IDB?
The Board of Governors is the highest policy making body, which elects the Board
of Executive Directors and the President. The Board of Executive Directors ensures that
the Bank operates in accordance with the policies laid out by the Board of Governors.
The President, as the Chief Executive, is responsible for the day to day operation of the
Bank.
The Bank’s organizational structure is dynamic and subject to change like any
other organization. At present, there are three Vice Presidents reporting directly to the
16
President. In addition, some departments/offices also report to the President directly.
The organization chart of the Bank is shown in the annexure.
12.
What are the major channels of communication with member countries?
According to the Articles of Agreement of the Bank, each member country is
required to appoint its own channels of communication for effective and timely
exchange of information.
The Governors/Alternate Governors are at the highest level in the channels of
communication. The Bank has also established focal points at various levels for
implementation of its special programmes, such as Technical Cooperation Programme
(TCP), Export Financing Scheme (EFS), etc., and for coordination with National
Development Financing Institutions (NDFIs) and Islamic Banks.
13.
Does IDB have regional offices? What are their main functions?
Yes, the Bank has three regional offices in Rabat, Morocco, Kuala Lumpur,
Malaysia, and Almaty, Kazakhstan. It has a Biosaline Agriculture Center in Dubai,
UAE.
The main functions of the regional offices are to:
14.
-
act as the Bank’s liaison office for the member countries in that region
-
assist in project identification and follow-up
-
market the Bank’s financing modes and explain its policies and procedures
-
assist in recruitment of staff
-
assist in private sector development activities
-
assist in mission preparation and organization
-
prepare short-list of consultants
-
liaise with other regional and international organizations located
in its
region and represent the Bank in regional conferences and
seminars.
What are the official and working languages of the Bank?
Arabic is the official language of the Bank. In addition, both English and French
are used as working languages.
STAFFING
15.
How does the Bank recruit its staff?
17
The Bank advertises for staff in major international publications and a limited
number of publications in member countries. Also the Bank advertises through the
Bank website (Recruitment@isdb.org) or electronic advertisement in international
recruitment websites. The candidate can apply in response to these advertisements and
write directly to the Director, Human Resource Management Department, sending
details of qualifications and experience.
The Bank also has a scheme for recruiting young professionals.
16.
Is there a quota system for recruitment of staff?
The Bank selects its staff on the basis of qualifications and experience. There is no
quota system for staff recruitment. However, like other multi-national development
banks, IDB gives due regard to the recruitment of personnel on as wide a geographical
basis as possible, while maintaining institutional harmony, standards of efficiency, and
staff morale.
17.
What is the current staff strength of the Bank? What categories of experts and
specialists does the Bank employ?
As of 30 Dhul Hijjah 1425H, the Bank employed 887 staff, comprising 408
professionals, 69 special category, 327 general category, and 83 manual workers.
The Bank employs various types of specialists such as economists, financial
analysts, engineers, agronomists, development banking specialists etc., for its
operational activities. The Bank also hires experts as short-term consultants for specific
projects, whenever necessary.
SHARI’AH AND ISLAMIC MODES OF FINANCING
18.
What is shari’ah ? Which are the principles of shari’ah that apply to Islamic
Banking ?
Shari’ah is the set of rules derived from both the Holy Quran and the authentic
traditions (Sunnah) of the Prophet (peace be upon him) and the scholarly opinions
(Ijtehad) based on Quran and Sunnah.
The principles of shari’ah that govern Islamic banking and finance include:
-
prohibition of interest (riba) in all financial transactions, such as: riba in debts;
riba in sales, particularly in the forward currency exchange.
18
19.
-
entitlement to return is due to liability of loss and vice versa.
-
Obligations of trust (amanah), covenants (uqud), interdiction against unlawful
(haram) earnings and expenditures, fraud of giving less than due in measure and
weight (tatfif), and unjust enrichment (akl mal al-ghair bi al-batil).
How does the Bank ensure that its operations conform to
shari’ah?
In order to ensure that its operations conform to shari’ah, the Bank seeks guidance
from the OIC Fiqh Academy comprising scholars from member countries. It also
constitutes Ad hoc Committees of Shari’ah Jurists, whenever required, to study
shari’ah-related issues and give opinion.
20.
What are the different modes of financing currently followed by the Bank?
The Bank finances projects from its ordinary capital resources through loan,
leasing, instalment sale, technical assistance, equity participation, profit sharing,
istisna’a, and lines of financing extended to NDFIs. A brief explanation of each is
given below:
LOAN:
This mode of financing is used for projects expected to have a significant socioeconomic impact, having a long implementation period, and which may not be revenue
generating. Loans are given to governments or public institutions mainly in Least
Developed Member Countries (LDMCs) for the implementation of infrastructure and
industrial projects.
LEASING (Ijara):
This is a medium term mode of financing for rental of capital equipment and other
fixed assets such as plant, machinery, and equipment for industrial, agro-industrial,
infrastructure, transport, etc., both for the public and private sectors. Lease financing is
also provided for acquiring ships, oil tankers, fishing trawlers, etc. After the end of the
rental period the Bank transfers the ownership of equipment to the lessee as a gift.
INSTALMENT SALE:
Instalment Sale is similar to Leasing. The major difference is that in Instalment
Sale the ownership of the asset is transferred to the beneficiary on delivery. Under this
mode of financing the Bank purchases equipment and machinery, and sells to the
beneficiary at a higher price.
19
EQUITY PARTICIPATION:
Under this mode of financing, the Bank participates in the equity capital of
existing or new companies in the public and private sectors. The Bank's participation is
limited to one-third of the equity capital of the company.
PROFIT SHARING:
It is a form of partnership in which two or more parties pool funds to finance a
venture. The partners share the profit (or loss) in proportion to their contribution to the
capital.
LINE OF FINANCING TO NDFIs:
Under this category the Bank extends financing through equity, leasing, and
instalment sale to the NDFIs in member countries to promote the growth of small and
medium scale industries, mainly in the private sector.
ISTISNA'A:
Istisna'a is a new mode for trade and project financing for the promotion of trade
in capital goods and enhancement of the production capacity. It is a contract for
manufacturing goods or other assets in which the manufacturer agrees to provide the
buyer with goods identified by description after they have been manufactured in
conformity with the description within a certain time and agreed price. This new mode
will enable the Bank to finance working capital and thus contribute to the enhancement
of production capacity in member countries.
In addition to the above, the Bank provides Technical Assistance in the form of
grant and/or loan for project-related tasks such as feasibility study and design,
supervision of implementation, and for tasks of an advisory nature such as definition of
policies, sectoral plans, institution-building, research, etc. Technical Assistance is
mainly extended to LDMCs.
21.
What is service fee? How does it defer from interest charges?
The Bank charges service fee on Loan financing to cover actual administrative
expenses related to the project. It differs from interest in that the service fee is the actual
expense incurred by the Bank, while interest is payment for the use of the funds.
20
22.
Are there upper limits to the amount of service fee charged on loans?
Service fee is charged lump sum. It is payable in six-monthly instalments. It is
based on the actual amount disbursed and the implementation period starting from the
date of first disbursement until the final repayment. The upper limit to the amount of
service fees charged in any one year is 2.5% of the loan amount.
23.
What is mark-up ? How is it different from interest ?
The mark-up is the margin added as a profit in addition to the real cost of the
commodity sold. In IDB, the practice of mark-up is applied to murabaha and instalment
sale.
The mark-up in the case of murabaha, is the profit, which is agreed upon between
the concerned parties. As for instalment sale, the mark-up is the amount to be included
in the re-payment instalments to be paid by the beneficiary. The mark-up rate is used to
calculate the lease rental in the case of lease financing.
Mark-up is different from interest in that it is related to machinery, equipment,
etc., in case of instalment sale or a commodity in case of murabaha, whereas interest is
related to money.
PROJECT FINANCING
24.
What are the main operational activities of the Bank?
The main operational activities of the IDB are geared towards projects financing,
technical assistance for studies and capacity building, trade financing aiming at the
promotion of cooperation between the member countries through exchange of expertise
and trade for their economic and social development. The Bank also extends support to
Muslim communities in non-member countries under Special Assistance Programme,
assists in the area of health and education, and offers two scholarship programmes to
meritorious students especially in science and technology.
During the period of 1396-1425H (1976-2004), the Bank approved a total of ID
22,591.31 millions (US$ 29,369 millions) for 4156 operations. In 1424H (2003-2004),
the Bank approved ID 3,091.844 millions (US$ 2,924.472 millions) for 262 operations
covering project financing, technical assistance, trade financing operations, and special
assistance projects for member countries and non-member countries.
Project financing and technical assistance for project preparation, design and
supervision and institutional capacity building were extended to a broad range of sectors
comprising agriculture, agro-industry, industries and mining, transport and
21
communication, public utilities, health and education. Various modes of financing are
applied in project financing i.e. Leasing, Installment Sale, Istisna'a, interest free loan,
declining Participation and Equity Financing, etc. In addition, the Bank extends
Murabaha financing for trade operations.
25.
Does IDB get involved in co-financing?
IDB co-finances projects in member countries with international, multinational
and regional development financing institutions and through the Arab Aid Coordination
Group (Arab Fund for Economic and Social Development, Saudi Fund for
Development, Kuwait Fund for Arab Economic Development, OPEC Fund for
International Development, Abu Dhabi Fund for Development, Arab Bank for
Economic Development in Africa), World Bank, African Development Bank, Asian
Development Bank and European Bank for Reconstruction and Development. IDB also
co-finances projects and operations with other financing institutions as well as regional
specialized organizations. However, in view of differences in procurement guidelines of
various institutions (other than coordination groups), parallel co-financing is the most
used method.
26.
In addition to project financing, what other financing schemes are offered to the
private sector?
The Bank currently offers a number of financing windows and schemes to the
private sector in member countries. These are: Import Trade Financing Operations
(ITFO), the Export Financing Scheme (EFS), micro small and medium enterprises
financing, the Assets Management Department (AMD) and the Islamic Corporation for
the Development of the Private Sector (ICD) and the IDB Infrastructure Fund. These
financing windows and schemes are also open to the public sector as well. Special
brochures are available on the terms and conditions offered through these various
windows and schemes.
27.
Does IDB cooperate with Non-Governmental Organizations (NGOs)?
The Bank has only limited cooperation with NGOs. It is studying possibilities of
extending cooperation with NGOs in areas such as, exchange of information, microcredit enterprise development, undertaking studies, small sound projects (health) and
assisting with monitoring of project implementation, etc. The fields of women's
development activities and micro-enterprises are among the areas where cooperation
with NGOs is mostly envisaged.
28.
Some member countries are able to get a higher level of IDB financing as
compared to others. Why?
22
Like other development banks, the level of IDB financing in a member country
depends on the Bank's available funds, the willingness of member countries to benefit
from the IDB's available financing facilities, the availability of sound bankable projects,
the speed of implementation of the projects already approved the absorptive capacity of
the country, as well as the population and income per capita of the country. A major
constraint in obtaining Bank’s financing is re-payment of debt on due dates. Overdues
may delay disbursements for existing projects and approval of new projects. Also
countries committed to implementation of Structural Adjustment Programmes may have
some difficulties in absorbing non-concessional financing from the IDB.
29.
What are the Least Developed Member Countries (LDMCs) and what assistance
does the Bank provide to them?
The United Nations has classified a number of countries as least developed, based
on certain criteria including the per capita income (less than $450) and the UN and
World Bank development indicators. These countries qualify for special assistance from
development financing institutions. Based on this, the Bank has classified 21 member
countries as ‘Least Developed’, which can benefit from its concessional financing which
is free of interest as only a small lump sum service fee is payable to cover the actual
administrative costs.
In 1413H (1992) the Bank established a Special Account for LDMCs for financing
projects that will address their urgent and basic needs. The first allocation of US$ 100
million for this Account has been fully committed and a new allocation of US$ 150
million for the following 5 years has been approved in 1420H (1999). The loans
provided under these programmes enjoy 30 years repayment period including 10 years
of grace period and service fee which covers only a part of the actual cost of
administering the loan which does not exceed 0.75% per annum.
30.
Does the Bank carry out post-evaluation (or assessment) of its projects? How does
it learn from past experiences?
In 1411H, the Bank established the Operations Evaluation Office (OEO) to assess
the performance of completed projects in order to learn from past experience, build up a
reference database, disseminate the results to improve future financing activities and
ensure the quality of projects at entry. The evaluation exercises conducted by the OEO
have highlighted the need for effective project monitoring and made several
recommendations to improve the quality and impact of the Bank’s operations.
OPERATIONAL POLICIES AND PROCEDURES
31.
Who can apply for project financing? What are the procedures to be followed?
23
Any potential beneficiary from a member country, either from the public or
private sectors, can apply for project financing. The request for financing should be
channeled through the office of the respective IDB Governor for the member country.
The official request should be accompanied by a project feasibility study or any other
bankable project document, which provides the salient features of the project with
respect to its technical, financial, social, economic and environmental aspects.
After in-house careful study, IDB sends its technical staff to member countries to
appraise the project and to assess its economic and financial viability. If the project
clears the appraisal stage, it is submitted to the Board of Executive Directors for
approval. If approved, a financing agreement is to be signed between the Bank and the
beneficiary.
Goods and services financed by the Bank are normally procured through
international competitive bidding. Consultancy services are obtained through a shortlisting process. Preference is given to firms from member countries. Depending on the
complexity and scope of the project, the Bank may limit procurement to only
contractors/consultants from member countries. Disbursements are based on actual
project execution. The borrower is expected to periodically inform the Bank of the
progress of the project implementation. The Bank may send special follow-up missions
to assess and monitor the implementation of the project.
32.
What are the Bank’s criteria for selection of projects for financing?
IDB selects those projects for financing, which:
-
Have a high priority for development in the concerned member countries;
-
Meet the priorities established in the Bank's Medium-Term Strategic Agenda;
-
Are technically sound and developmental in nature;
-
Are economically and/or financially viable.
Regional projects, which promote cooperation among member countries, are given
special consideration.
To prepare a medium-term investment program, the Bank, in consultation with the
concerned member country, may prepare a Country Assistance Strategy Studies (CASS)
to establish priority areas and projects for financing over period of three years.
24
33.
Does the Bank finance cost overrun on IDB-financed projects?
Generally, the Bank does not finance cost overrun and there is a condition in all its
financing agreements that the beneficiary is responsible for covering cost overrun.
However, in very exceptional and well justified cases, particularly in the case of leasing,
istisna'a and instalment sale financing, the Bank may consider covering such cost overrun
within certain limits.
34.
How does the Bank assist in the development of the private
Sector?
The Bank assists the private sector through direct modes of financing, such as
instalment sale, leasing, equity participation, profit sharing, and various trade promotion
schemes.
It also provides direct technical assistance financing in the form of loan and/or
grant with certain conditions for capacity-building programmes and for conducting
feasibility studies.
Besides, it makes use of National Development Financing Institutions (NDFIs) to
extend lines of financing to sub-projects and lines of technical assistance to help small
and medium scale enterprises conduct feasibility studies.
35.
Does the Bank finance feasibility studies for private sector projects?
The Bank’s medium-term Strategic Agenda attaches high priority to private sector
development. In line with this, the Bank finances feasibility studies and undertakes
capacity-building programmes within certain limits and conditions as part of Technical
Assistance (TA) operations in member countries.
36.
What support is extended to small and medium scale enterprises by the Bank
through NDFIs?
IDB finances very small, small and medium scale enterprises through lines of
financing extended to NDFIs or other approved institutions in member countries. The
NDFIs or approved institutions are responsible for project identification, evaluation, and
monitoring. They are authorized to approve financing within certain limits.
The lines are extended for financing by way of Leasing, Instalment Sale, Istisna'a,
Technical Assistance, and a combination of these modes of financing. Leasing and
Instalment Sale are used to finance procurement of machinery, equipment, and other
capital goods for new projects or expansion of existing projects. Istisna'a mode is for
25
civil works construction and activities. Technical Assistance is provided to help small
and medium scale enterprises conduct feasibility studies.
37.
What criteria does the Bank apply while approving a line of financing to an NDFI
or other approved institutions?
In approving a line of financing to an NDFI or approved institutions, the Bank
evaluates its managerial expertise, financial soundness and technical capabilities to
ascertain that the NDFI or approved institution is suitable.
38.
Are financing procedures and policies different for private and public sectors?
For the time being there is no difference as far as financing from the IDB is
concerned. However, the terms and conditions of financing extended from the windows
which are private sector oriented such as the ICIEC, ICD and AMD, etc. are closer to
the market conditions than those of the IDB financing. Also, in line with other
international and regional development financing institutions, the Bank is giving more
attention to the development of the private sector and a new approach along with the
creation of new instruments are being considered.
39.
Does the Bank consider environmental factors in its decision to finance a project?
The Bank recognizes that preservation of the environment is essential for
sustainable development. While it is not in a position to undertake large-scale
environmental programs, in evaluating new projects, the Bank gives preference to
environment-friendly projects and review the project design in order to ensure that
adequate mitigation measures are incorporated in the project design against any major
environmental hazards.
40.
What is the role of the Bank in alleviating poverty?
The Bank recognizes the strategic need for alleviating poverty in member
countries and is making efforts to finance projects having a direct impact on poverty
alleviation, particularly in the LDMCs. This aspect is emphasized in the medium-term
Strategic Agenda of the Bank. The Bank selects projects in areas such as: primary health
care, elementary and vocational education, agricultural development, water supply, smallscale irrigation and integrated rural development projects, etc., which will improve the
living conditions of the poor, in addition to creating employment opportunities.
41.
Does the Bank take into consideration the special needs of women in development?
The Bank recognizes the importance of the role of women in economic and social
development. It emphasizes the need for educating women and undertaking rural
26
development activities for their welfare. The Bank is currently looking at ways and
means of extending support to women entrepreneurs as part of its small and medium
scale enterprise development programme. A unit dealing with NGOs and Women has
also been established.
42.
What is the extent of IDB’s involvement in case of natural disasters or calamities?
The Bank provides relief in the form of appropriate goods and services to member
countries afflicted by natural disasters and calamities. Some of these activities are
financed of the Bank’s Waqf Fund. Member countries and Muslim communities in nonmember countries afflicted by earthquakes, floods and other calamities have benefited
from this assistance.
PROJECT IMPLEMENTATION
43.
What type of guarantees is acceptable to IDB?
Government and first class bank guarantees are normally acceptable to IDB.
Recently, the Bank has introduced other alternatives like corporate guarantee,
assignment of receivable, acceptance of payment order or promissory notes accepted by
a reputable bank, and stand-by letter of credit.
44.
Does IDB maintain a list of approved guarantor banks? How does IDB evaluate a
new guarantor bank?
The Bank maintains a list of approved guarantor banks. Whenever a new bank is
proposed as a guarantor, IDB evaluates that bank from the managerial, financial, and
technical point of view. It investigates thoroughly the previous performance of the
guarantor bank to ensure that it would meet the Bank’s requirements.
45.
Does the Bank give preference to procurement of goods and services from member
countries?
While the general policy of the Bank is to procure goods and services through
international competitive bidding, it gives preference to firms in member countries.
Based on specific criteria, such preference can be up to 15% of the amount of the lowest
bid in favour of local contractors in case the procurement is confined to IDB member
countries. However when the procurement is on IDB, member countries contractors can
be asked to match down their offers to the level of the lowest offer of the contractor
from non-member countries. Also for a specific category of projects which can be
implemented adequately through firms of IDB member countries, the Bank restricts the
competitive bidding among its member countries.
27
46.
How are prospective suppliers of goods and services kept informed of IDB
financed projects?
After each meeting of the Board of Executive Directors, the Bank issues a press
release concerning the approved projects/operations, which is published in widely
circulated newspapers. It is also distributed to the Chambers of Commerce in member
countries and their diplomatic missions in Saudi Arabia.
In addition, every four months the Bank publishes an Operation Bulletin, giving
the list of projects approved during the period, the status of implementation, and the
address of the beneficiary. The bulletin is distributed to the Chambers of Commerce,
diplomatic missions of member countries, Arab and Islamic Federation of Contractors,
Islamic Federation of Consultants, and others on the Bank’s mailing list.
47.
Does the Bank give preference to member country experts and consulting firms?
The Bank, in consultation with the beneficiary, follows the short-listing approach
in selecting experts and consulting firms. However, in the technical evaluation,
preference is given to experts and consulting firms from member countries by giving
them 10 additional points.
In some cases the Bank limits the choice to experts and consulting firms from
member countries.
48.
Who is responsible for evaluating the bids and approving contracts?
The beneficiary is responsible for the evaluation of bids of contractors and
suppliers. However, in order to ensure compliance with the Bank’s policies and
procedures, the beneficiary is required to obtain the Bank’s clearance before floating
tenders (invitation to bids, bidding and contract documents) and before contract
signature (bid evaluation reports and draft contracts). With regard to consultants, the
evaluation of offers is carried out simultaneously by the beneficiary and the Bank to
reach a mutual agreement on the selection of the best offer.
49.
Under what circumstances can the beneficiary award a contract to a higher-cost
bidder?
Normally, the highest technical standard and the lowest cost offers are selected
while evaluating bids. However, in certain cases the second lowest cost offer may be
selected if the lowest offer is not technically acceptable or declined for any reason.
TECHNICAL COOPERATION PROGRAMME
28
50.
What is the IDB Technical Cooperation Programme?
The Technical Cooperation Programme (TCP) is one of the most important
programmes of the Bank devoted to promotion of human resources development in IDB
members countries and institutions through the following vehicles:
51.
-
Exchange of expertise among member countries and institutions,
-
Organization of familiarization visits for senior officials and study visits to
augment their experiences,
-
Organization of seminars, workshops and conferences on technical issues related
to socio-economic development, and
-
Enhancing the skills of technicians, professionals and officials in the mid-level
management through providing on-job-training in order to enhance their
performance and increase their technical and professional capacities.
Why was the IDB Technical Cooperation Office established?
The Makkah Declaration observed the existence of abundant resources in the
Islamic Ummah and lamented the lack of their sufficient exploitation due to absence of
well established cooperative instruments that are capable for enhancing exchange of
expertise, skills and knowledge, and adoption of appropriate technologies suited to the
resources endowment of member countries and institutions. To fulfill this requirement,
the IDB initiated and launched in 1403H (1983) a programme for technical cooperation
entitled: "Technical Cooperation Programme among IDB Member Countries/Institutions
(TCP).
52.
Initially the TCP was established as a unit in the Country Operations complex.
However, with the passage of time and due to the awareness of the TCP in member
countries and institutions, the number of requests was significantly increased and the
Unit was consequently upgraded to an independent office in 1416H (1986).
What is the role of the IDB in the Technical Cooperation Programme?
IDB is a multi-lateral development financing institution aims to foster socioeconomic development in its member countries and institutions. To supplement other
sources of financing available from the IDB, member countries and institutions cannot
effectively and adequately utilize the level of project financing given to them because
manpower and institutional shortage which restrict the absorptive capacities of their
economies. Through the above human resources promotion vehicles stated earlier, the
IDB can also play the role of mediator and co-financer to match the capacity needs by a
member countries with those available in another country.
29
53.
What are the Technical Cooperation Programme Focal Point, and Donors?
The focal point is an entity designated by the member country to act as the
member country's national institution responsible for the IDB technical cooperation.
The focal point may be a unit, department, agency or a specific ministry to carry out the
above mentioned duties. The donor are the IDB member countries which possess
capacities and willingness to share expertise and experiences with other member
countries in need.
54.
What is the Tripartite Cooperation?
It is a concept of cooperation between the IDB and its member countries and
institutions, where the IDB coordinates with two or a group of donors and beneficiaries
to cooperate on a bilateral or multilateral basis in order to mobilize and exchange skills,
talents and technical know-how for achievement of socio-economic development in
member countries and institutions.
55.
What are the new priorities for Technical Cooperation Office?
In order to foster the efforts of the IDB in fighting poverty, it has been decided to
focus on specific areas that have quick impact on individual as well as member
countries. As such, the TCO gives priorities to request in the following areas:
56.
a.
Human development i.e. education (enhancing education and vocational training
systems), and health care,
b.
Agricultural development and food security (including agricultural research, crop
protection, soil conservation, livestock breading and husbandry, water
management and environment sustainability)
c.
Infrastructure development,
d.
Intra-trade among member countries,
e.
Micro-finance, and
f.
Research and development in Islamic banking and finance including internal and
external debt.
What is the difference between Technical Assistance (TA) and Technical
Cooperation programmes of the Bank?
Technical Assistance (TA), as defined by the Bank, is the provision of technical
expertise, means and know-how to assistance in preparation or implementation of a
policy or project, or to help develop the capacity of institutions and the human resources
in charge of carrying out such policies and projects. While technical assistance is
broader in scope, technical cooperation programme is limited in the following levels:
30
-
TCP involves only member countries and institutions as beneficiaries and donors
of expertise,
-
TCP is based on "tripartite cooperation" concept whereby all three parties
concerned (beneficiary, donor and IDB) are expected to contribute,
-
TCP operations are smaller in size and more informal that TA i.e. no agreement is
signed between IDB and the beneficiary.
COOPERATION OFFICE
57.
What is main objective and purpose of the Cooperation Office?
The Cooperation Office was established on 15-8-1420H (23.11.1999). Its main
objective is to coordinate and follow-up on the activities of the Bank related to the
promotion of cooperation among Member Countries, and the cooperation of the Bank
with International Institutions. In addition, it serves the role of reinforcing and
expanding the Bank’s existing ties and collaboration that exists with Member Countries
and International Institutions.
The Cooperation Office comprises 4 units, namely: OIC Coordination Unit, WTO
Coordination Unit, Promotion of Cooperation among Member Countries Unit, and
International Institutions Unit. Currently, only the OIC Coordination Unit and WTO
Unit and are active. The remaining units will be activated at a later date. However, the
two active Units cover the functions pertaining to the remaining Units.
58.
What are the roles and functions of the OIC Unit?
The principal role and functions of the OIC Unit can be described as follows:
a.
Collaborate with OIC, its organs and affiliated institutions on behalf of the Bank
on matters related to cooperation and coordination between Member Countries;
b.
Undertake and prepare background documents, reports and papers in relation to
conferences and meetings organized by OIC and its affiliated Institutions, such as
the Islamic Summit, Islamic Conference of Foreign Ministers, COMCEC,
Commission on Social and Cultural Affairs, Commission on Science and
Technology, and so on;
c.
Undertake necessary follow-up action from the above meetings that are relevant
and within the competent of the Bank.
d.
Represent the Bank in conferences and meetings related to the responsibility of the
Unit.
31
59.
e.
Monitor the development of cooperation among Member Countries with a view to
explore effective mechanism for enhancing and strengthening the cooperative
activities beneficial to the Member Countries.
f.
Prepare brief reports and short papers on issues relating to economic, trade and
financial cooperation among Member Countries.
What are the roles and functions of the WTO Unit?
The principal role and functions of the WTO Unit can be described as follows:
60.
a.
Serve as the focal point within the Bank for all WTO related matters.
b.
Maintain contact with the WTO and keep abreast of the new developments taking
place in the field of trade and development, and through periodic reports, keep the
Management informed of the major developments that may be of interest to the
Bank.
c.
Cooperate with other relevant International Institutions, such as UNCTAD, ITC,
UNDEP, WIPO, etc. for providing technical assistance to Member Countries in
WTO related matters.
d.
Elaborate the Technical Assistance Program of IDB on WTO related matters and
monitors its implementation.
e.
Support relevant Member Countries in enhancing their negotiating capabilities to
accede to the WTO on the most favorable terms.
f.
Organize consultative meetings of Member Countries to exchange views and
coordinate their positions on WTO related matters prior to the WTO Ministerial
Conferences, as well as for preparing them for future negotiations in the WTO,
and enabling them to benefit from the multilateral trade process effectively.
g.
Provide technical assistance on request, and on case-by-case basis, to enable
member countries that are already of the WTO to derive maximum benefits from
the Organization.
h.
Represent the Bank in the WTO meetings and other relevant international,
national, and/or regional conferences, seminars, workshops, etc.
What are the roles and functions of the International Institutions Unit?
The principal role and functions of the International Institutions Unit could be
described as follows:
32
a.
Establish (and maintain) contacts with International Institutions on matters related
to trade, economics, development and WTO.
b.
Promote and enhance cooperation in the areas beneficial to Member Countries.
c.
Study the utilization of the technical skills and experience (and lessons learned) of
the International Institutions for the benefit of the member Countries.
d.
Formalize and strengthen the relationship and cooperation under the framework of
Memorandum of Understanding (MoU), Cooperation Agreements, and so on.
e.
Reinforce the existing ties of collaboration that exists between the IDB and the
International Institutions.
f.
Create a forum for multilateral consultations, discussions and exchange of views
and information, dissemination of studies and research related to trade and
development, as well as issues particular to WTO.
SCIENCE & TECHNOLGOY OFFICE
61.
Why a Science & Technology Office at IDB?
The IDB being a development financing institution, it has a deliberate, conscious
drive to evolve and strengthen the most appropriate tools for contributing to the
substantial social and economic progress of its member countries.
Science & Technology has proven to be the single most important contributor to
increase in productivity and wealth generation worldwide.
Therefore, the IDB has established a dedicated department to formulate policies
and to implement programmes in this area, based on the consolidated achievements of
its former Science & Technology Unit of the Technical Cooperation Office.
62.
What is the mission of the STO?
The overall mission of the STO may be summarized as being the IDB’s strategy to
harness the benefits of scientific knowledge for the enhanced and accelerated socioeconomic development of its member countries.
63.
How does STO operate?
The mechanisms of STO intervention are combinations of the following means:
-
the Committee on Science & Technology, an in-house consultative group which
(i) studies and reviews the Bank’s S&T policies, strategies, guidelines and internal
33
mechanisms and procedures, as well as external proposals and formulates
appropriate recommendations to the management and (ii) provides guidance on
the Bank’s relationship and cooperation with selected strategic S&T partners;
-
IDB's Advisory Panel on Science & Technology composed of selected eminent
scientists from member countries and dedicated to advising the Management on
priority S&T policy issues;
-
the general and specialized financing windows of the Bank available for S&T
projects financing, promotion of S&T in member countries, and S&T capacity
building; and;
-
the strategic S&T partners of the Bank, foremost the OIC sister institutions
involved in S&T and the major regional/international S&T-related organizations.
The role of the STO is to utilize the above means in order to devise or improve
policies, formulate or optimize strategies, implement specific S&T programmes and
assist other IDB departments and strategic partners in their S&T activities; while doing
so, the STO ensures an appropriate monitoring of the desired impact of IDB’s S&T
activities for the benefit of its clients.
64.
Who are STO's strategic partners?
Strategic partners are identified, tested and selected through actual cooperation in
implementing joint activities or parts of IDB’s S&T agenda.
At OIC level, these are the Ministerial Standing Committee for Scientific &
Technological Cooperation (COMSTECH) and its specialized S&T InterIslamic
Networks, the ISESCO, the Islamic Academy of Sciences (IAS) and the Islamic
University of Technology (IUT).
International and regional partners include the UNESCO, the African Foundation
for Science & Technology (AFRISTECH), the International Islamic Forum for Science,
Technology and Human Resources Development (IIFTIHAR), the Pathfinder
Foundation for Education & Development (PATHFINDER), the African Regional
Center for Technology (CRAT) among others.
A number of national S&T institutions and R&D centers of excellence also play a
major role in IDB’s strategic S&T partnership.
TRADE PROMOTION
65.
How does the Bank contribute to promotion of trade among member countries?
34
The Trade being an indispensable element in the development process, the Bank
has established various modes of financing in conformity with shari’ah to foster
cooperation and trade among its member countries. These are:
-
Import Trade Financing Operations (ITFO) by which the Bank assists member
countries in importing goods with a developmental impact and increase intratrade;
-
Export Financing Scheme (EFS) for promoting exports of non-traditional goods of
member countries, and;
-
Islamic Banks’ Portfolio (IBP), which provides trade financing for both imports
and exports, and financing for industrial sector through leasing and instalment sale
operations. Another function of IBP is syndicated financing.
BADEA Export Financing Scheme (BEFS). BEFS is an export finance scheme
managed by the IDB on behalf of Arab Bank for Economic Development in Africa
(BADEA) Khartoum, Sudan. This export finance scheme is designed to promote the
exports of countries which are members of the Arab League to African countries which
are not members of the Arab League.
In addition to these schemes, the Bank promotes trade cooperation by organizing
specialized workshops and seminars, assisting member countries in taking part in fairs
and exhibitions, etc.
66.
Are there any annual allocations for member countries under the trade financing
schemes?
The Bank allocates funds on yearly basis for each member country. This is
reviewed during the year in order to increase the allocations of those member countries,
which have actively utilized their initial quota.
67.
How is the Bank helping its member countries to prepare for the new global
trading environment in the post-Uruguay Round period?
The Uruguay Round Agreements have drastically changed the global trading
environment and the rules governing international trade. These Agreements have
expanded opportunities for market access through removal/reduction in tariff and nontariff barriers to trade and streamlining procedures aimed at facilitating the movement of
goods and services across borders. It has also created many challenges as well as
opportunities for the developing countries, including IDB members.
35
In order to help its member countries better understand the intricacies of the new
system and to prepare them to meet these challenges, the Bank is organizing a series of
workshops/ seminars on relevant topics of the Uruguay Round Agreements. These
workshops/seminars will be conducted in collaboration with the World Trade
Organization (WTO) and other international organizations. The Bank also intends to
obtain an observer status with the WTO to enable it to keep abreast with the new
developments.
68.
What is the IDB's Export Financing Scheme (EFS)?
Export Financing Scheme (EFS) was established in 1406H to promote export of
goods of OIC member countries participating in the Scheme to member and nonmember countries by providing short-term and long-term financing.
69.
Who manages the Scheme and what are its resources?
The governing body of the Scheme is the IDB Board of Executive Directors.
At the close of the year 1421H, 24 OIC member countries have joined by Scheme.
The subscribed capital of the Scheme is ID 317 million, of which ID 167 million is
subscribed by 24 member countries and ID 150 million by the IDB. The paid up capital
of the Scheme at the close of 1421H was ID 133.25 million, of which ID 75 million was
paid by the IDB.
70.
What are the salient features of the financing provided by the Scheme?
The Scheme provides 100% financing based on Murabaha or Instalment Sale
against a guarantee from a commercial bank acceptable to the IDB or insurance
company (ICIEC). Under these modes of financing, the IDB directly or through its
agent undertakes to purchase the goods from the exporter and then sell the same to the
importer against a profit margin (mark-up). The mark-up consists of a base (US dollar
LIBOR relevant to the tenor of the facility) plus a Spread.
All exports of Shariah compatible goods having 30% input from the OIC member
countries are covered by the Scheme.
Depending on the nature of the goods, the repayment period ranges from 6 months
to 120 months. The currency of repayment to the IDB is US dollar, although the
transaction can be conducted in any convertible currency acceptable to the parties
involved. A rebate equivalent to 30% of the Spread will be granted for prompt
repayment in full.
71.
What are the procedure for utilization of the facility under the Scheme?
36
Exporters from EFS member countries may submit a formal application through
the designated IDB EFS national agency in their respective country. In a situation where
there is no designated national agency, the exporter may submit the application directly
to the Trade Finance and Promotion Department.
FINANCIAL MANAGEMENT
72.
What are the Ordinary Capital Resources of the Bank?
The Ordinary Capital Resources of the Bank comprise the paid-up capital
reserves, retained earnings and funds placed by others for utilization in the Bank’s
ordinary operations.
73.
Islamic shari’ah prohibits interest on loans. How does the Bank earn income?
The Bank does not charge interest in its financing operations. Most of its income
is derived from leasing, instalment sale and foreign trade financing on which a mark-up
rate is applied in accordance with shari’ah principles. Further, it recovers the
administrative costs of loan and technical assistance financing by charging a service fee
based on the actual cost incurred by the Bank.
74.
How does the Bank mobilize resources beyond its share capital?
The Bank mobilizes resources through financial instruments which conform to
shari’ah principles, either directly or through its other financing windows, such as Unit
Investment Fund and Islamic Banks’ Portfolio.
75.
What currencies does the Bank use for disbursement of funds and for accepting
repayment ? How does it determine the exchange rates?
The Bank disburses funds in all major convertible currencies as well as in local
currencies of member countries depending on the supply contracts and the provision of
the IDB financing agreement. The Bank accepts repayment in most major convertible
currencies. All disbursements and repayments are converted into Islamic Dinars for
accounting purposes.
The exchange rate for the Islamic Dinar vis-à-vis the currency of
disbursement/repayment is based on the IMF rate for the SDR on the date preceding the
value date of the payment.
76.
How does the Bank utilize funds that are not needed for immediate disbursement?
37
All funds that are not immediately needed for disbursement are placed in shari’ahcompatible short-term investments, mainly in commodity trading.
77.
What are the measures taken by the Bank to control overdues?
In its effort to control overdues, the Bank has devised a set of policies and
procedures, which deal with follow-up, control, and collection of overdue instalments.
A 15% rebate on mark-up has been introduced for foreign trade, leasing and instalment
sale operations to encourage and reward timely repayment of the dues of the Bank.
In the case of foreign trade operations approved beginning April 1998 onwards,
the rebate has been changed to 30% of the spread.
In case an instalment becomes overdue, the Bank resorts to invoking of the
guarantee provided. In serious cases of default, the Bank suspends disbursement of ongoing projects and stops approval of new projects in the country concerned.
IDB INFRASTRUCTURE FUND
78.
79.
What are the objectives of the Fund?
1.
To mobilize private sector resources to ease public sector's burden for
infrastructure financing.
2.
To seek long-term capital appreciation by making equity and equity-related
investments in infrastructure projects and infrastructure-related industries in the
member countries.
3.
To promote Islamic finance, foreign direct investment and regional capital market
development.
Is there a need for this Fund?
It is estimated that IDB member countries would require US$ 741.2 billion over
the next ten years infrastructure finance.
80.
What is the size of the Fund?
The Fund will target equity capital of US$ 1 billion and Complementary Finance
Facility (CFF) of US$ 500 (five hundred) million. The CFF will be deployed in
conjunction with the equity capital and will be utilized to promote Islamic Finance.
81.
Is this Fund adequate to meet these needs?
38
It is estimated that the multiplier-effects of the Fund will be approximately US$
15-20 billion.
82.
What is the Financial Structure of the Fund?
The Fund is structured as a Limited Partnership. It will be incorporated in
Bahrain. Investor's liability is limited up to their commitments as Limited Partners,
while the Manager is the General Partner. There are three classes of investors in equity
capital: Principal Sponsor (US$150MM), Lead Sponsor (US$100MM), and Investor
(US$10MM minimum).
83.
What is the Organizational Structure of the Fund?
A Policy Management Company (PMC) with a majority shareholding (51%) of
IDB will be responsible for policy-setting, monitoring and performance-evaluation of
the Manager. Emerging Markets Partnership (EMP), Bahrain, has been appointed as the
Manager of the Fund and is owned 60% by EMP and 40% by Shamil Bank of Bahrain.
EMP, Washington, has been appointed to act as the Principal Advisor to the Fund
whereas the Shamil Bank of Bahrain has been appointed as the Advisor.
There will be two Committees: the Equity Investment Committee (EIC) and the
CFF Investment Committee (CFFIC). These Committees will review all the proposed
equity and mezzanine financing investments. Lead Sponsors can nominate one member
each to the EIC or CFFIC and will be entitled to receive a portion of the performance
fee.
84.
Why is IDB not directly involved in managing the Fund?
The PMC is responsible for laying down the policy and overall strategy of the
Fund. EMP, Bahrain, is the Manager and will run its day-to-day operations. The PMC
and EMP, Bahrain, are separate legal vehicles. This legal framework will insulate IDB
from any potential liability, which might arise if it were to assume the roles of both
policy-setter and Manager responsible for day-to-day activities of the Fund.
85.
What is the experience of the Fund Manager?
Designated Chief Executive Officer (CEO) EMP Bahrain is Mr. Mumtaz Khan.
For three years, Mr. Khan was a Resident Partner and Manager of Asian Operations of
the AIG - Asia Infrastructure Fund in Hong Kong. Prior to that, he was a Manager in
Asia Department at International Finance Corporation (IFC), the private sector arm at
the World Bank. From 1987 to 1990, he was Resident Representative of IFC in Jakarta,
Indonesia, and during 1981 to 1987, he was an Investment Officer (later becoming
Principal Investment Officer) in Asia Department of IFC.
39
86.
What is the performance of the Principal Advisor of the Fund?
EMP, Washington, is the Principal Advisor and Manager for over US$ 4.6 billion
of equity investments in infrastructure projects. It was formed in 1992, and specializes
in worldwide direct investment in infrastructure projects in Asia, Latin America and
Emerging Markets.
87.
What is the performance of the Advisor of the Fund?
Shamil Bank of Bahrain is a subsidiary including the investment banking arm of
Dar Al-Maal Al-Islami Trust. It manages over US$ 800 million in assets for
corporations, Institutions and high net-worth individuals.
88.
What is the Fee Structure?
Management fee has been negotiated at 1.5% flat per annum on committed
amount in the first five years, and on the outstanding investments in the next five years.
An incentive fee of 20% on all returns (after the priority payment of return of 7% has
been paid) exceeding the hurdle rate of 10 years US Treasury Bonds. Any return over
the hurdle rate will be shared in the proportion of 80:20 between the investors and the
Fund Manager. Shareholders in the PMC will be entitled to receive 30% of the Fund
Manager's incentive fee. IDB would receive 51% of the incentive fee accruing to PMC
shareholders in proportion to its shareholding.
No fee will be paid for the Complementary Finance Facility. The fee structure is
conceived in such a way as to avoid a situation where the Manager will devote the
lowest possible amount of time after the five-year commitment period, and should
therefore, earn a fee commensurate to his efforts.
89.
What is the Sectoral Focus of the Fund?
Power and energy-related facilities, telecommunication systems and services,
transportation, water, sanitation and environmental services, natural resources
development, infrastructure-related facilities and financial services.
90.
What are the Investment Criteria of the Fund?
The project should be of high priority for the country in which it is located, and
approved by the host government. In addition, the following requirements must be met:
1.
The Fund will seek to be a minority investor, with generally no more than 40%
shareholding.
40
91.
2.
The minimum equity investment by the Fund should be US$10 million, with a
maximum investment of US$100 million, or 10% of the Fund's Equity
Commitments.
3.
The Fund will usually require a seat on the Board of Directors of the investee
company or project.
4.
The project sponsors (other than the Fund) should be able to provide assurances
that construction will be completed on time and within budget.
5.
The project should be protected, to the extent possible, from the impacts of
inflation, foreign exchange adjustments and inconvertibility. Moreover, the Fund's
investment in the project should have a clear exit strategy.
What is the nature of investments?
Equity: green-field projects, expansion projects and restructuring of existing
projects.
Complementary Finance Facility: Islamic modes of mezzanine financing like
Ijara, Instisna'a and Murabaha.
92.
93.
How are the investments diversified?
1.
The Fund will not invest more than 10% of the Equity Commitments in any single
project or Company.
2.
It will not invest more than 20% of the Equity Commitments in a single member
country.
3.
In most cases, the Fund will not hold more than 40% of the total equity
capitalization of any project or Company nor will it be the single largest
shareholder of any investee project or Company.
4.
No more than 20% of the Equity Commitments will be invested in listed
companies and the combined resources of the Fund's equity investment and any
CFF participation will not represent more than 50% of any project's cost.
What are Exit Strategies?
Through the sale of IPOs, (Initial Public Offers), "put" option to local/technical
partner, private sale of equity investments to strategic and institutional investors.
94.
What is the Jurisdiction?
41
The Limited Partnership between the Investors and the Fund Manager will be
governed by the Laws of Bahrain. The latter's Courts will have exclusive jurisdiction to
hear and determine any dispute that may arise.
SPECIAL ASSISTANCE PROGRAMME
95.
What are the objectives of the Special Assistance Programme of the Bank?
The main objective of the Special Assistance Programme is to provide financial
assistance to Muslim communities in non-member countries to improve their socioeconomic conditions and to provide relief in the form of appropriate goods and services
to member countries and Muslim communities in non-member countries afflicted by
natural disasters and calamities.
Special Assistance provided by the Bank is classified into five categories:
a) Educational, health and social projects for Muslim communities in non-member
countries;
b) Assistance to refugees from member countries or Muslim communities to
neighboring member countries;
c)
Assistance to member countries afflicted by natural disasters;
d) Support to centers of research in teaching Islamic culture or the Arabic language;
e)
96.
Support to the Muslim scientific heritage.
Does IDB offer scholarships, and what are they?
There are three scholarship programmes funded and implemented by the IDB as a
part of its overall effort in the development of human resources of its member countries
and those of the Muslim communities in non-member countries, i.e., Scholarship
Programme for Muslim Communities, and Merit Scholarship Programme and M.Sc
Scholarship Programme for member countries.
97.
What is the Scholarship Programme for Muslim Communities?
Implemented jointly with the Counterpart Organizations, this Programme was
launched in 1404H (1983) to enable Muslim students from non-member countries (who
are 24 years old or less, with Senior High School diploma, good passing grades in basic
sciences and language, etc) to undertake undergraduate studies in Medicine, Engineering
and other related fields in their own or IDB member countries. The Programme covers
42
tuition, stipend, books/clothing allowance, medical expenses and tickets as interest-free
loan payable to a local Trust after graduation and gainful employment.
98.
What is the Merit Scholarship Programme?
Approved in Ramadan 1411H (1991), and implemented in May 1991, this
Programme is for 3-year Ph.D study and 3-6 month Post-Doctoral research in 17 areas of
science and high technology for scholars between 25 and 40 years old, with M.Sc degree
(for Ph.D study) and Ph.D degree (for Post-Doctoral research), "very good" grades, 2-5
years of experience, some publications. Between 15-20 scholarships are available every
year, covering monthly and books/clothing allowance, tuition, thesis/scientific papers
preparation, insurance, ticket, etc.
99.
What is M.Sc Scholarship Programme?
This Programme was launched in Muharram 1419H (May 1998) to assist 20 IDB
Least Developed Member Countries (Afghanistan, Benin, Burkina Faso, Chad, Comoros,
Djibouti, Gambia, Guinea, Guinea-Bissau, Maldives, Mali, Mauritania, Mozambique,
Niger, Palestine, Sierra Leone, Somalia, Togo, Uganda, Yemen). The Scholarship is for
two-year M.Sc study in science and technology for students who are no more than 30 years
old, in possession of a B.Sc/equivalent degree, very good grades, etc and covers tuition
fee, monthly/ clothing/books allowance, medical coverage and ticket.
100. How do we obtain the Application forms and further information?
For the Scholarship Programme for Muslim Communities, from the Counterpart
Organizations in non-member countries; for Merit Scholarship Programme and M.Sc
Scholarship Programmes, from the Offices of the IDB Governors of the member countries
and/or designated Contact Points; or download them from the IDB web site. E-mail is:
scholar@isdb.org.
ISLAMIC RESEARCH AND TRAINING INSTITUTE
101. What are the objectives of the Islamic Research and Training Institute (IRTI) ?
IRTI was established in 1401H (1981) with the main objective of conducting basic
and applied research in the fields of economics, finance and banking in conformity with
the principles of shari’ah and to provide training and development of professional
personnel in the field of Islamic economics to meet the needs of research in shari’ahobserving agencies. The Institute is also charged with the responsibility of training
personnel engaged in development activities in member countries and establishing an
information center to collect, systematize and disseminate information in fields related
to its activities.
43
IRTI publishes its selected research work and seminar proceedings in the three
working languages of the Bank. It also publishes a bi-annual journal on Islamic
Economic Studies in English and Arabic. A French version of the Islamic Economic
Studies is also in the offing.
102. How are participants in IRTI’s training programs selected?
IRTI has an annual training program which is open to development personnel in
member countries. The participation in these programmes is sought through the offices
of IDB Governors in the respective member countries. Information on these programs
can be obtained by writing directly to the Institute. Those interested in participating in
the training programs are however required to send their nomination through the office
of the respective IDB Governor.
103. What type of research is conducted by IRTI? How does IRTI assist Islamic
scholars?
IRTI conducts basic and applied research aimed at developing models and
methods for the application of shari’ah in the field of economics, finance and banking.
The Institute studies ways and means of enhancing cooperation among member
countries. It also conducts research in crucial economic issues facing member countries,
particularly, in the field of economic development.
Any researcher in the areas of Islamic economics, banking and finance may
contact IRTI for assistance. The Institute may help by providing copies of its
publications or with necessary references and bibliography. In some cases it may also
consider limited financial grant to complete the research.
If a research work is directly related to its research program and conforms to its
academic standards, IRTI can publish the work and give the author a suitable
honorarium. If the topic is not directly related to its current research priorities, but meets
acceptable academic standards, it may provide modest financial help to enable the
author to publish the research work at his own, subject to evaluation and approval by the
IRTI Academic Committee. IRTI may also consider publishing it in its journal “Islamic
Economic Studies”, which is a refereed journal and published twice in a year.
104. What is the Visiting Scholars Scheme?
Under this scheme, the Institute invites scholars of international repute to visit
IRTI for a short duration ranging from 3 months to a year to work on some specific
44
research project related to IRTI research priorities. The scholars familiar with IRTI’s
research interests may write to the Director, IRTI, with a specific research project and
their C.V. to indicate their intention to benefit from this scheme.
105. What is the IDB Prize? What are the criteria for nomination?
The Islamic Development Bank awards an international Prize every year
alternating between Islamic Economics and Islamic Banking. The Prize currently
includes a citation and a cash award of Islamic Dinars 30,000 (US$ 43,000
approximately). The objective of the Prize is to recognize, reward and encourage
creative efforts of outstanding merit in the fields of Islamic Economics and Banking.
Nominations are sought every year through announcements made in the
international press and distributed directly through universities, research institutions and
government ministries in the IDB member countries. Individuals or organizations may
be nominated for the Prize, though self and posthumous nominations are not acceptable.
The nomination procedure is given in the advertisement as well as in the brochures,
which are published and distributed every year.
A nominee for the IDB Prize should have conducted research work to his credit or
rendered services of outstanding merit, such as:
a) Research work of outstanding merit in the fields of Islamic economics/Islamic
banking as the case may be for the Prize for that year.
b)
Mobilization of intellectual capabilities and/or creative efforts for the promotion
of Islamic economics/Islamic banking.
c)
Implementation of Islamic economics/Islamic banking programs designed to
achieve the objectives of the Prize.
The research works, on the basis of which nomination for the Prize is made,
should have been published and received academic recognition. Works which have
already won any other international Prize are not considered for the Prize.
More information about IRTI’s various activities and other programs may be
obtained either by writing to the Director, IRTI, or by visiting IRTI’s home page at
http://www.irti.org.
ASSETS MANAGEMENT DEPARTMENT
106. What is Assets Management Department?
The Assets Management Department (AMD) is the capital markets arm of the
IDB. It encompasses the management of the IDB Unit Investment Fund (UIF), the
45
Islamic Banks Portfolio (IBP) and the Awqaf Properties Investment Fund (APIF), and
other funds in the future. Through these funds, AMD complements IDB's development
effort in member countries by mobilizing resources from the market to finance both
public and private sector projects. The IDB undertakes the role of Mudarib and acts as
manager and trustee of the funds.
107. Who can subscribe to the Funds?
Investment in the Fund is open only to institutional investors. Unitholders include
Islamic banks, financial institutions, and insurance companies, pension funds and other
institutions.
108. What are the general features of the Fund?
All the three funds, UIF, IBP and APIF are US dollar denominated. Profits are
distributed annually to participants and unitholders. The safety of investment is assured
by a multi-tiered system of security, which give the funds unique position as asset class
instruments. In addition, the spread of the funds investments over various sectors and
countries provides a natural way of mitigating risk.
In addition, the spread of the Funds investments over various sectors and countries
provides a natural way of mitigating risk.
109. What are the main modes of AMD financing?
AMD concentrates primarily on direct medium to long term financing of assets by
way of murabaha leasing, instalment sale and istisnaa. Additionally, AMD co-finances
projects with IDB and other Islamic banks and financing institutions. AMD also
arranges or participates in syndicated financing and assets securitization.
110. How are AMD's investments approved?
AMD invests in accordance with Investment Guidelines of various funds under
management. Each financing operation is screened by various committees before prior
to submission for consideration and approval by the President, IDB, or the relevant
committee and the IDB Board of Executive Directors, depending on the amount and risk
profile.
111. What is the Risk Management Governance in IDB ?
The risk management framework and governance in the IDB is structured and achieved
by the following:
-
The Board Executive Directors (BED)
46
-
The Audit Committee of the BED
-
The Assets Management Committee
-
The Operations Committee
-
The Trade and Investment Committee
-
The Risk Management Committee
-
The Risk Management Office
112. What is the Risk Management Strategy of the IDB ?
The Risk Management Strategy of the IDB is based on five pillars:
-
Development of Risk Management Policies and Guidelines
-
Risk Management Control
-
Risk Management Information System
-
Risk Management Reporting System
-
Risk Management Culture
113. What are the major risks faced by the IDB ?
The major risks faced by the IDB: (a) credit risks (country risks constitutes the major
risks faced by the IDB, (b) liquidity risks, (c) market risks, and (d) operational risks
(compliance with Shariah principles is among the most important operational risks).
114. What is the OICNetworks, plc?
The OICNetworks, plc is a project being implemented by IDB to establish a
network inter-linking key institutions in the member countries with each other. The
project aims to improve the dissemination, exchange and sharing of information
amongst these institutions so as to assist the member countries in their overall
developmental activities.
The project will be implemented as a Joint Venture between the Bank and
MIMOS (a Malaysian Information Technology Company) with the Bank holding 51%
shares and MIMOS 49%. The JVC is registered in Malaysia under the name of
OICNetworks Private Limited.
115. What are the major Business Areas of OICNetworks, plc?
OICNetworks, plc will have its own Portal and will offer the following services:
47
-
Internet-based information services and a Gateway to Internet connecting ISPs in
the member countries to the Global Network
-
The OICExchange Portal incorporating advanced search engines for providing
quality information services
-
E-Commerce infrastructure with emphasis laid on enhancing trade amongst the
member countries
-
Consultancy Services in information technology & communications
116. How can you access the OICExchange Portal?
The OICExchange Portal can be accessed through the Internet via local ISPs in the
member countries. While some services will be free some others will be subscriptionbased.
117. Does the Bank have its own Group Web Site? What does the site displays?
The Group Web site consists of eight sub-sites which include IDB affiliates such
as IRTI, ICIEC, ICD, IBP, UIF, ICBA, the Infrastructure Fund and a sub-site to
commemorate the IDB Silver Jubilee Celebrations. The Bank’s main Web Site can be
accessed at www.isdb.org and provides suitable links to its affiliates, which have been
included as sub-sites having their own domain names. The Group Web site consisting
of approx. 2000 pages provides detailed information on the Bank’s activities and
objectives including projects in member countries as well as information on Business
Opportunities. Information is periodically updated to ensure its accuracy and
authenticity.
118. What are Al-Quds Intifada Fund and Al-Aqsa Fund?
Al-Quds Intifada Fund and Al-Aqsa Fund are 2 funds that were established by the
Arab leaders in the Summit held in Cairo, Egypt in October 2000 to assert the
comprehensive Arab support for the Palestinian people in face of continuous Israeli
aggression.
119. What are the objectives of the Al-Quds Intifada Fund and Al-Aqsa Fund and what
is the capital of each Fund?
Al-Quds Intifada aims at providing assistance to the families of martyrs and
wounded persons and to provide health care and education services to their children.
The objective of Al-Aqsa Fund is to finance projects aimed at preserving the Arab and
Islamic identity of the City of Jerusalem and to enable the Palestinian economy build its
capacity, stands on its own against the Israeli onslaught and gradually disengage from
48
Israeli economy. The capitals of Al-Quds Intifada Fund and Al-Aqsa Fund are US$ 200
million and US$ 800 million respectively.
120. How the two Funds will be managed?
The Arab finance ministers in their meeting held in Cairo on 23 November 2000
entrusted the Islamic Development Bank (IDB) to manage the two Funds because of the
IDB's involvement in the human development of Palestine over the past 25 years. The
ministers decided that management of the 2 Funds through the Supreme Council and the
Administrative Commission. The Supreme Council consists of finance ministers of
participating countries and the Secretary General of the Arab League as permanent
members, and the Islamic Development Bank as an observer. The Administrative
Commission is composed of representatives of the countries that pledged 3% of the
declared capital of the two funds, a representative of countries pledged less than 3%, in
addition to representatives of the Palestinian Authority and the Arab League.
121. What is the purpose of the Islamic Corporation for the Insurance of Investment
and Export Credit (ICIEC)?
ICIEC is an international institution with full juridical personality established in
1995 as an affiliate of IDB, with an authorized capital of about US$ 150 million to
which IDB contributed 50%. The remainder has been opened to participation by OIC
member countries. Currently (on 31 March 2004) 34 countries are full members of
ICIEC.
The objective of ICIEC is to enlarge the scope of trade transactions and flow of
investments among member states. To serve its objectives, ICIEC provides for
exporters, banks and investors from member countries, the following services:
-
Export credit insurance service against commercial and non-commercial risks;
-
Investment insurance or re-insurance service against non-commercial (country)
risks;
-
Re-insurance for Export Credit Agencies (ECAs) in member countries.
122. How can ICIEC help exporters in member countries expand their exports?
By giving export credit insurance against the risk of non-payment by buyers in
foreign countries, ICIEC enables exporters to do business with risky partners and
markets. In addition, they can extend credit facilities to foreign buyers and obtain
financing or their export from banks and other financial institutions.
49
123. What is the Islamic Corporation for the Development of the Private Sector (ICD)?
How was it established? When did it start its operations?
The Islamic Corporation for the Development of the Private Sector (ICD) is an
affiliate of the Islamic Development Bank (IsDB). It is an international multilateral
financial institution created for the development of its member countries through the
provision of financial services and technical support to the private sector.
The ICD was established as per the resolution of the IsDB Board of Governors
during its 24th meeting held on 24-25 Rajab 1420H (2-3 November 1999) in Jeddah,
Kingdom of Saudi Arabia.
The ICD started its operations on the same day its Inaugural General Assembly
Meeting was held, i.e. 6 Rabi’ II 1421H (8 July 2000).
124. What is the mission of the ICD?
The mission of the ICD is to complement the role played by the Islamic
Development Bank through the development and promotion of the private sector as a
vehicle for economic growth and prosperity.
125. What is the vision of the ICD?
The vision of the ICD is to become a premier Islamic multilateral financial
institution for the development of the private sector.
126. What are the main objectives of the ICD?
The ICD focuses on the following objectives:
-
Identifying opportunities in the private sector that could function as engines of
growth.
-
Providing a wide range of Shari’a compatible financial products and services
(equity participation, leasing, installment sale, etc).
-
Expanding access to Islamic capital markets by private companies in IDB member
countries.
In achieving these objectives, ICD seeks to play a role in:
-
Mobilizing funds for private sector investment;
50
-
Acting as a catalyst in privatization programs and restructuring of companies in
member countries by providing advisory services to both public and private
sectors;
-
Encouraging the development of Islamic capital markets.
127. Which countries are entitled to become members of the ICD? How many have
joined the ICD?
All member countries of IDB are entitled to become members of the ICD. As of
29 Muharram 1427H (28 February 2006) forty nine (49) countries had signed the
Articles of Agreement of the ICD; out of these 49 countries, 44 had ratified the said
Agreement and become member countries of ICD.
128. Are public and private companies entitled to become shareholders of the ICD?
For the time being, only public financial institutions can apply for membership in
ICD. As of 30 Dhul Hijjah 1426H (30 January 2006), five (5) public financial
institutions are members of the ICD. However, as stipulated in the Articles of
Agreement of the Corporation, the General Assembly may open membership of the ICD
to private sector institutions on such terms and conditions as it may determine.
129. What is the capital structure of the ICD?
The authorized capital of the ICD is US$ 1.0 billion of which US$ 500 million is
available for subscription. The structure of the subscribed capital is as follows:
IDB
Member Countries
Financial Institutions of member countries
50%
30%
20%
130. How many shares must a country subscribe to the ICD’s share capital upon
joining the Corporation?
Upon joining the ICD, a country agrees to subscribe the number of shares that was
allocated to it as per the resolution of IDB Board of Governors during its 24th meeting
held on 24-25 Rajab 1420H (2-3 November 1999) in Jeddah, Kingdom of Saudi Arabia.
Moreover, the Articles of Agreement of ICD explains the following about
subscription:
1.
The Bank and the founding member countries shall initially subscribe the number
of shares specified according to the agreement.
51
2.
Each other founding member shall subscribe at least one hundred shares.
3.
Shares initially subscribed by the founding members shall be issued at par.
4.
The conditions governing the subscription of shares to be issued after the initial
share subscription by the founding members which shall not have been subscribed
under related item defined in the Articles of Agreement, as well as the dates of
payment thereof shall be determined by the General Assembly of the Corporation.
131. What is the organizational Structure of ICD?
The ICD has a General Assembly representing its shareholders (countries and
institutions), a Board of Directors, and an Executive Committee that consists of a
selected number of Board members and acts as a fast track decision making body.
The President of the IDB is the ex-officio Chairman of the ICD Board of
Directors. In October 2001, the Board of Directors appointed the first full-time CEO and
General Manager who conducts business under the general supervision of the Chairman
of the Board of Directors.
The ICD has also a Shari'a Committee that advises on the Shari'a compliance of
ICD products and services and an Advisory Board that comprises renowned
personalities well versed with the ICD's field of activities.
132. Does the ICD have the same Board of Directors as the IDB?
No. Despite the fact that the IDB has 50% shareholding in the capital of the ICD,
the two institutions have different Board of Directors.
133. What are the Products and services of the ICD?
The ICD provides a wide variety of financial products from which its clients can
choose. This enables the ICD to offer a mix of financing that is tailored to meet the
needs of each project. The main products and services are:
Direct financing
ICD's direct financing is implemented through the subscription and purchase of
shares or the provision of term financing in productive and viable projects or companies
operating in member countries. As a policy the ICD shall not be the single largest
shareholder in any project nor shall it acquire a majority or controlling interest in the
share capital of a project or enterprises except when it is necessary to protect its interest.
52
Corporate finance
ICD' extends short-term corporate finance to cover working capitals or raw
materials requirements of private sector entities through Murabaha or purchase and
lease-back for a tenor to or less than 24 months.
Lines of Financing
ICD' extends lines of financing to commercial banks and national development
financing institutions. These lines represent a means to contribute in a cost-effective
manner in the financing of small and medium enterprises (SMEs). The modes of
financing used within the framework of the lines are usually leasing and installment
sale. Equity and quasi-equity may be used in certain cases.
Asset Management
The ICD acts as a manager (Mudarib) or sponsor for funds created by other
institutional investors. It can create venture capital or sector funds for financing of
projects or companies.
Structured Finance
The ICD structures, arranges and manages syndications, underwrites and manages
share and securities issues, makes private placements and also carries out securitizations
for its clients.
Advisory Services
The ICD provides advisory services to governments, public and private companies
on economic, financial, institutional, and legal aspects relating inter alia, to creating a
suitable environment for private sector development, project financing, restructuring and
rehabilitation of companies, privatization, securitization, Islamic finance and
development of Islamic capital markets.
134. What are the operating principles of ICD?
-
-
The ICD operates along the following principles:
Provide financing on terms and conditions which take into account the
requirements of the project/company to be financed, risks of the project and the
market terms and conditions of similar financing.
Seek representation on the Board of the companies it invests in but without
assuming responsibility for managing any of these companies.
53
-
Maintain reasonable diversification of its investments.
135. What are the modes of financing of the ICD?
The ICD utilizes Shari'a compatible modes of financing/financial products, in
particular:
-
Equity: participating in the share capital (Musharaka), profit sharing with
declining participation, or trustee profit sharing (Mudharaba).
-
Term Financing: leasing (Ijara), installment sale, istisna'a (financing of a
construction and manufacturer order) and morabaha (for certain projects).
-
Quasi-equity in the form of term financing convertible into equity at some stage of
the project life.
136. What are the types of projects eligible for financing by the ICD?
The projects eligible for financing by the ICD are mainly:
Greenfield projects
This refers to investment/financing of new companies/projects, which will have
developmental impact on the economy as a whole, and fulfill the criteria of technical
soundness and financial proficiency.
Expansion projects
This refers to financing/investment in plant expansion or capacity enhancement.
Existing projects under restructuring/rehabilitation
As most countries are restructuring their industries to reduce dependence on a particular
sector, the ICD will have the opportunity to finance companies that are being
restructured or rehabilitated.
Privatization operations
The ICD will finance state-owned enterprises, which are being privatized as long as the
remaining investment by the government in the company does not exceed 49% of voting
stock. Moreover, it will structure and finance projects implemented through concession
agreements (BOT, BOOT, BOO, etc.) and also finance the modernization of privatized
companies to enhance their productivity and competitiveness.
137.
What are the criteria of eligibility for ICD financing?
54
All productive or service activities that are legal, Shari'a compliant, financially
profitable, economically viable and contribute to the development of the member
countries are eligible for ICD financing as long as the public ownership of the project
does not exceed 49% of the voting stock. Further, all sectors are eligible with the
exception of recreation and defense.
138.
What types of collateral does ICD require?
When financing a project, ICD may resort to a variety of securities such as
pledges, mortgages, bank guarantees, personal guarantees, corporate guarantees,
promissory notes and assignment of receivables. The value of the total securities for
any project is to be determined on case by case basis.
139. What is the Unit of account and operation?
The ICD currency of account is the US dollar. However, ICD can also extend
financing in the major convertible currencies.
140. What is the project information required for ICD financing?
When undertaking a preliminary evaluation of the possibility of investment or
financing of a project, the ICD requires information on the project such as the project
sector, project objective, details on company and sponsor, ownership structure and
management profile, project cost and financing requirements. Following a first
expression of interest in the request, the basic information on the project has to be
complemented by a market study or a feasibility study and other elements of information
that may be deemed necessary to enable the ICD make the final decision.
141. Does the ICD contribute in the financing of micro-enterprises and small and
medium scale enterprises?
The ICD does not contribute in the financing of micro-enterprises as this activity
is being carried out by the Islamic Development Bank which extends also lines of
financing to National Development Financing Institutions (NDFIs) to finance SMEs.
The ICD can, however, provide financing to SMEs through special funds established on
a regional or country basis in promising sectors such as telecommunications,
technologies, etc.
142. Can the ICD co-finance projects with non-Islamic financing institutions?
The ICD can co-finance projects with non-Islamic financing institutions including
conventional banks provided that the financing to be extended by the Corporation itself
55
is Sharia’a compliant. Thus, two cases may arise in this respect, one possibility is that
the ICD and the non-Islamic financing institutions undertake parallel co-financing where
the component financed by the ICD is separate from those financed by the other
institutions even though they relate to the same project. Another possibility is that the
other institutions are willing to apply the same Shari’a compliant mode of financing as
the ICD, in this case a joint co-financing may be envisaged and even a financing
syndication.
143. What are the contact details of the ICD?
Islamic Corporation for the Development of the Private
Sector (ICD)
P.O. Box 54069
Jeddah 21514
Kingdom of Saudi Arabia
Tel: (966-2) 6441644/6467973
Fax: (966-2) 644 4427
Email: icd@isdb.org.sa
Internet: www.icd-idb.org
INTERNATIONAL ISLAMIC RATING AGENCY (IIRA)
144.
What is the International Islamic Rating Agency?
The IIRA is a Bahrain Joint Stock Company established to carry on the business
of research analysis, rating, evaluation and appraisal of the obligations, dues,
commitments and the like including shares, stock and other securities issues by or on
behalf of any governmental authority, or any corporation whether incorporated within or
outside the Kingdom of Bahrain, for use by any person or body including investors,
issuers, underwriters, tenders, government agencies, banking and financial institutions,
international agencies, researchers, etc.
145.
What are the objectives of the IIRA?
The objectives of the IIRA are as follows:
-
Rating of public and private entities;
-
Provide an independent assessment and opinion on the likelihood of a future
loss of the rated entity;
-
Provide an independent assessment of compliance by the concerned entity or
financial instrument compatible with the Sahriah principles;
56
146.
-
Disseminate knowledge data that would assist in the free flow of
information for the continued development, sound functioning and
efficiency of the International Islamic Capital market;
-
Save as an effective tool for introducing standards for greater disclosure and
transparency;
-
Contribute to the promotion of International Islamic Financial Capital
market and Islamic Instruments.
What are the main sponsors of the IIRA?
The IIRA enjoys the support of the Islamic Development Bank Group as well as a
large number of Islamic banks, rating agencies, Accounting and Auditing Organization
for Islamic Financial Institutions (AAOIFI) and the Bahrain Monetary Agency (BMA).
147. What are the contact details of the IIRA?
The IIRA is under establishment and will be based in Bahrain. In the meantime,
for future information, you may contact:
Mr. Khaled Al Aboodi
Chairman of Board of IIRA
Fax: 00966-2-6467859
INTERNATIONAL CENTER FOR BIOSALINE AGRICULTURE (ICBA)
148.
What is the International Center for Biosaline Agriculture?
The International Center for Biosaline Agriculture Center (ICBA) was established
in 1996 as a new applied research institution specializing in utilization of saline,
brackish and sea waters for agriculture and re-vegetation. Based in Dubai, United Arab
Emirates, the ICBA is financed and promoted by the Islamic Development Bank (IDB)
in cooperation with Ministry of Agriculture and Fisheries and the UAE University.
149.
What are the objectives of the International Center for Biosaline Agriculture?
The ICBA has four principal objectives, which are:
(a)
Acquisition, evaluation, preparation and distribution of plants for biosaline
irrigation agriculture;
(b)
Development of production and management systems that assure sustainable
agriculture enterprises and environmentally sound ecosystems under biosaline
irrigation;
57
150.
(c)
Establishment of strong capability for acquisition, storage, retrieval and
dissemination of knowledge of biosaline irrigation through networking and for
sharing that information with relevant international, regional and national
research and educational institutions;
(d)
Provision of the regular practical training on the state-of-art in biosaline
irrigation and the development of technology transfer to beneficiaries.
What are the benefits of the International Center for Biosaline Agriculture?
The ICBA will determine the suitability of the conventional crop species for
propagation under saline irrigation in the target areas and particularly in the Gulf
environment. Alternative crop production and management systems will be evaluated
with the objectives of maximizing production from salt-tolerant species.
WORLD WAQF FOUNDATION (WWF)
151.
What is the World Waqf Foundation?
The World Waqf Foundation (WWF) is an independent entity within the IDB
Group. It is an international development financial organization concerned with the
Waqfs. The IDB established this organization pursuant to the Articles of Agreement
establishing the Bank.
152.
What are the purposes of the World Waqf Foundation?
The purposes of the Foundation as stipulated in Article 3 of WWF Regulation are
as follows:
(1)
to support establishment of a network of Waqf institutions that would perform
Shariah compatible charity activities;
(2)
to sponsor and support Waqf institutions, coordinate their activities and provide
them with expertise;
(3)
to extend assistance to students and provide scholarships in disciplines which can
fulfill the needs of the Ummah;
(4)
to establish and support educational, health and social institutions and
programmes;
(5)
to contribute to the alleviation of poverty so as to enable the people of the world
overcome hardship and build their capabilities;
(6)
to provide relief aid in the form of goods and services;
58
(7)
153.
to help IDB member countries enact unified Waqf legislations.
What are the regions where the World Waqf Foundation operates in?
As an international institution, it operates in the IDB member countries and in
Muslim communities in non-member countries, in accordance with rules and regulations
of the country concerned. The activities of the Foundation and those of sister
institutions and funds shall be coordinated in conformity with rules and regulations
enacted by the Board of Trustees.
154.
Who are the personalities and institutions that are likely to deal with the World
Waqf Foundation?
The persons and institutions that are likely to deal with the WWF can be classified
as follows:
155.
(1)
persons and institutions who are members in council of Waqf by virtue of
contributing an amount of US$1 million or more;
(2)
persons who, and institutions which, place their Waqf under the trusteeship or
supervision of the Foundation without being a member in the council of the
Waqfs;
(3)
persons and institutions operating or supervising their own Waqf but desiring to
entrust the distribution of revenues of such properties or part thereof to the
Foundation in areas compatible with its purposes;
(4)
persons or institutions operating or supervising their own Waqf and desiring
coordination with the WWF.
In what ways is the WWF considered an addition to the existing institutions
operating in field of Waqf?
There are numerous Waqf organizations in the IDB member countries and Muslim
communities in non-member countries, especially as Waqf managers.
Nevertheless, there is a real need for an international financial development
foundation for Waqf under the umbrella of the IDB for the following reasons:
(1) Being part of the IDB Group provides WWF with moral as well as financial
support. In addition, putting the vast experience of the Bank and other members
of the Group at the disposal of the Foundation will encourage philanthropic
individuals and institutions to work with. Moreover, being under the umbrella of
59
IDB will facilitate comprehensive control over the Foundation’s funds and
activities;
(2) It is expected that the Foundation will receive a deal of support from governments
of various countries which will encourage local individuals and institutions to
participate in it, as well as facilitate the implementation of the Foundation’s
projects and programmes in these countries;
(3) The Foundation’s resources will enjoy immunity from expropriation by any
country, in accordance with the IDB’s Articles of Agreement;
(4) The Foundation is able to fulfill the requirements of the philanthropic individuals
and institutions. It can greatly help them maintain, manage, invest and develop
their Waqf assets. It can also help such individuals and institutions in the
distribution of Waqf revenues under its management, either through full or limited
authorization;
(5) The right of charitable individuals and institutions to notarize their participants in
the Foundation’s capital and reserve their legal right to withdraw from it is
distinctive feature of the Foundation;
(6) The Foundation is capable of accumulating vast resources, making it possible to
formulate ambitious development plans to meet the demands of the Ummah. It
will also have the technical wherewithal to implement such plans;
(7) Through its work mechanism, the Foundation provides a healthy partnership
among philanthropic individuals and institutions, non-governmental organizations
(the third sector) and governments to cooperate in the various development fields.
MISCELLANEOUS
156.
What is the Sacrificial Meat (Adahi) Utilization Project?
The Bank cooperates with authorities of the Government of the Kingdom of Saudi
Arabia in implementing the Sacrificial Meat (Adahi) Utilization Project. The main
objective of the Project is to serve the pilgrims in facilitating the performance of their
religious rites regarding the sacrifice and to utilize the sacrificed meat through
distribution to the needy and the poor in the Holy Haram area of Makkah, and in both
member countries and Muslim communities in non-member countries.
The Bank has been involved in this Project since its inception in 1403H (1983).
157.
How can one obtain the publications of the Bank, IRTI, ICIEC or ICD?
60
The publications of the IDB Group are available on request free of charge from
Bank Headquarters. Correspondence in this respect should be addressed either to the
Bank Secretariat Department or to the Publications Unit of IRTI, ICIEC or ICD
respectively.
61
IDB MEMBER COUNTRIES AND DATE OF MEMBERSHIP
#
Country
Official Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
Afghanistan
Albania
Algeria
Azerbaijan
Bahrain
Bangladesh
Benin
Brunei
Burkina Faso
Cameroon
Chad
Comoros
Côte d'Ivoire
Djibouti
Egypt
Gabon
Gambia
Guinea
Guinea Bissau
Indonesia
Iran
Iraq
Jordan
Kazakhstan
Kuwait
Kyrgyz
Lebanon
Libya
Malaysia
Maldives
Mali
Mauritania
Morocco
Mozambique
Niger
Nigeria
Oman
Pakistan
Palestine
Qatar
Saudi Arabia
Senegal
Sierra Leone
Somalia
Sudan
Suriname
Syria
Tajikistan
Togo
Tunisia
Turkey
Turkmenistan
Uganda
U.A.E.
Uzbekistan
Yemen
Afghanistan
Republic of Albania
Democratic and Popular Republic of Algeria
Azerbaijan Republic
Kingdom of Bahrain
People's Republic of Bangladesh
Republic of Benin
Negara Brunei Darussalam
Burkina Faso
Republic of Cameroon
Republic of Chad
Union of Comoros
Côte d'Ivoire
Republic of Djibouti
Arab Republic of Egypt
Republic of Gabon
Republic of the Gambia
Republic of Guinea
Republic of Guinea Bissau
Republic of Indonesia
Islamic Republic of Iran
Republic of Iraq
Hashemite Kingdom of Jordan
Republic of Kazakhstan
State of Kuwait
Kyrgyz Republic
Republic of Lebanon
Great Socialist People's Libyan Arab Jamahiriyah
Malaysia
Republic of Maldives
Republic of Mali
Islamic Republic of Mauritania
Kingdom of Morocco
Republic of Mozambique
Republic of Niger
Republic of Niger
Sultanate of Oman
Islamic Republic of Pakistan
State of Palestine
State of Qatar
Kingdom of Saudi Arabia
Republic of Senegal
Republic of Sierra Leone
Republic of Somalia
Republic of Sudan
Republic of Suriname
Syrian Arab Republic
Republic of Tajikistan
Republic of Togo
Republic of Tunisia
Republic of Turkey
Republic of Turkmenistan
Republic of Uganda
United Arab Emirates
Republic of Uzbekistan
Republic of Yemen
Membership Date
Hijra
Gregorian
26.10.1396H
04.03.1414H
24.07.1394H
04.01.1413H
06.10.1394H
24.07.1394H
01.06.1404H
24.07.1406H
06.04.1398H
09.04.1397H
06.04.1397H
24.04.1400H
21.04.1423H
24.04.1400H
27.07.1394H
27.04.1401H
24.04.1400H
24.07.1394H
16.12.1398H
24.07.1394H
16.07.1409H
19.10.1398H
24.07.1394H
08.07.1416H
24.07.1394H
19.05.1414H
09.04.1397H
06.08.1394H
24.07.1394H
24.04.1400H
06.04.1398H
24.07.1394H
24.07.1394H
08.07.1416H
24.07.1394H
24.07.1394H
24.07.1394H
24.07.1394H
07.07.1397H
24.07.1394H
24.07.1394H
28.11.1396H
01.08.1402H
24.07.1394H
24.07.1394H
02.01.1418H
04.09.1395H
16.07.1417H
29.07.1419H
24.07.1394H
24.07.1394H
12.06.1415H
09.04.1397H
24.07.1394H
05.07.1424H
19.07.1395H
62
(20.10.1976)
(21.08.1994)
(12.08.1974)
(04.07.1992)
(21.10.1974)
(12.08.1974)
(03.03.1984)
(03.04.1986)
(15.03.1978)
(28.03.1977)
(26.03.1977)
(11.03.1980)
(02.07.2002)
(11.03.1980)
(12.08.1974)
(03.03.1981)
(11.03.1980)
(12.08.1974)
(16.11.1978)
(12.08.1974)
(22.02.1989)
(23.09.1978)
(12.08.1974)
(30.11.1995)
(12.08.1974)
(03.11.1993)
(28.03.1977)
(24.08.1974)
(12.08.1974)
(11.03.1980)
(15.03.1978)
(12.08.1974)
(12.08.1974)
(30.11.1995)
(12.08.1974)
(12.08.1974)
(12.08.1974)
(12.08.1974)
(23.06.1977)
(12.08.1974)
(12.08.1974)
(20.11.1976)
(24.05.1982)
(12.08.1974)
(12.08.1974)
(08.05.1997)
(09.09.1975)
(27.11.1996)
(18.11.1998)
(12.08.1974)
(12.08.1974)
(15.11.1994)
(28.03.1977)
(12.08.1974)
(02.09.2003)
(28.07.1975)
Islamic Development Bank
King Khalid Street
P. O. Box 5925, Jeddah-21432
Kingdom of Saudi Arabia
Telephone: (966-2) 6361400
Fax: (966-2) 6366871
Telex: 601137 ISDB SJ
Cable: BANKISLAMI - JEDDAH
Home Page : http://www.isdb.org
e-mail Address : idbarchives@isdb.org.sa
Regional Offices
MOROCCO
IDB Regional Office
KM 6.4 Ave Imam Malik Routedes Zaers
B.P. 5003, 10105 Rabat, Morocco
Telephone: (212-3) 775-7191 / 765-9751
Fax: (212-3) 775-7260
Telex: 36027
Email: isdb.rro@iam.net.ma
MALAYSIA
IDB Regional Office
Level 13, Suite, Bangunan Bank Industri
Bandar Wawasan No. 1016 Jalan Sultan Ismail
P.O.Box 13671
508250 Kuala Lumpur - Malaysia
Telephone: (603) 26946627, 26946628, 26946629
Fax: (603) 26946626
Email: idbkul@po.jaring.my
KAZAKHSTAN
IDB Regional Office
65/9 Naurizbay-batir str.
480000 Almaty, Kazakhstan
Tel: (7-3272) 623555 / 623620
Fax: (7-3272) 501303
E-mail:Nzabidin@idb.netel.kz
63
64