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Islamic Development Bank (also known as IDB), is a multilateral development financing institution located in Jeddah
Jeddah

Jeddah is a Saudi Arabian city located on the coast of the Red Sea and is the major urban center of western Saudi Arabia. It is the largest city in Makkah Province, and the second largest city in Saudi Arabia after the capital city, Riyadh....
, Saudi Arabia
Saudi Arabia

The Kingdom of Saudi Arabia, KSA , is an Arab country and the largest country of the Arabian Peninsula. It is bordered by Jordan on the northwest, Iraq on the north and northeast, Kuwait, Qatar, Bahrain, and the United Arab Emirates on the east, Oman on the southeast, and Yemen on the south....
. It was founded by the first conference
Conference

A conference is a meeting of people that "confer" about a topic.*Academic conference, in science and academia, a formal event where researchers present results, workshops, and other activities....
 of Finance Ministers of the Organization of the Islamic Conference (OIC), convened 18 December 1973. The bank officially began its activities on 15 Shawwal
Shawwal

Shawwal is the tenth month of the lunar Islamic calendar. Shawwal means to ?lift or carry?; so named because she-camels normally would be carrying a fetus at this time of year....
 1395H (20 October 1975). On the basis of paid-up capital, the main shareholders of the Bank are from these countries:


The functions of the Bank are to participate in equity capital and grant loans for productive projects and enterprises besides providing financial assistance to member countries in other forms for economic and social development.






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Islamic Development Bank (also known as IDB), is a multilateral development financing institution located in Jeddah
Jeddah

Jeddah is a Saudi Arabian city located on the coast of the Red Sea and is the major urban center of western Saudi Arabia. It is the largest city in Makkah Province, and the second largest city in Saudi Arabia after the capital city, Riyadh....
, Saudi Arabia
Saudi Arabia

The Kingdom of Saudi Arabia, KSA , is an Arab country and the largest country of the Arabian Peninsula. It is bordered by Jordan on the northwest, Iraq on the north and northeast, Kuwait, Qatar, Bahrain, and the United Arab Emirates on the east, Oman on the southeast, and Yemen on the south....
. It was founded by the first conference
Conference

A conference is a meeting of people that "confer" about a topic.*Academic conference, in science and academia, a formal event where researchers present results, workshops, and other activities....
 of Finance Ministers of the Organization of the Islamic Conference (OIC), convened 18 December 1973. The bank officially began its activities on 15 Shawwal
Shawwal

Shawwal is the tenth month of the lunar Islamic calendar. Shawwal means to ?lift or carry?; so named because she-camels normally would be carrying a fetus at this time of year....
 1395H (20 October 1975). On the basis of paid-up capital, the main shareholders of the Bank are from these countries:
  • Saudi Arabia
    Saudi Arabia

    The Kingdom of Saudi Arabia, KSA , is an Arab country and the largest country of the Arabian Peninsula. It is bordered by Jordan on the northwest, Iraq on the north and northeast, Kuwait, Qatar, Bahrain, and the United Arab Emirates on the east, Oman on the southeast, and Yemen on the south....
  • Sudan
    Sudan

    Sudan is a country in northeastern Africa. It is the largest in the African continent and the Arab World, and List of countries and outlying territories by total area by area....
  • Kuwait
    Kuwait

    The State of Kuwait is a sovereign Arab emirate on the coast of the Persian Gulf, enclosed by Saudi Arabia to the south and Iraq to the north and west....
  • Libya
    Libya

    Libya , officially the Great Socialist People's Libyan Arab Jamahiriya , is a country located in North Africa. Bordering the Mediterranean Sea to the north, Libya lies between Egypt to the east, Sudan to the southeast, Chad and Niger to the south, and Algeria and Tunisia to the west....
  • Turkey
    Turkey

    Turkey , known officially as the Republic of Turkey , is a Eurasian country that stretches across the Anatolian peninsula in southwest Asia and Thrace in the Balkans region of Southern Europe....
  • UAE
  • Iran
    Iran

    Iran , officially the Islamic Republic of Iran and formerly known internationally as Persian Empire until 1935, is a country in Central Eurasia, located on the northeastern shore of the Persian Gulf and the southern shore of the Caspian Sea....
  • Egypt
    Egypt

    Egypt is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Western Asia. Covering an area of about , Egypt borders the Mediterranean Sea to the north, the Gaza Strip and Israel to the northeast, the Red Sea to the east, Sudan to the south and Libya to the west....
  • Indonesia
    Indonesia

    The Republic of Indonesia , is a transcontinental country in Southeast Asia and Oceania. Comprising Islands of Indonesia, it is the world's largest Archipelago state....
  • Pakistan
    Pakistan

    Pakistan , officially the Islamic Republic of Pakistan, is a country located in South Asia and borders Central Asia and the Middle East. It has a 1,046 kilometre coastline along the Arabian Sea and Gulf of Oman in the south, and is bordered by Afghanistan and Iran in the west, India in the east and People's Republic of China in th...


Functions

Islamic Development Bank


The functions of the Bank are to participate in equity capital and grant loans for productive projects and enterprises besides providing financial assistance to member countries in other forms for economic and social development. The Bank tries to foster the economic development and social progress of member countries and Muslim communities in non-member countries individually as well as jointly in accordance with the principles of Shari'ah or Islamic jurisprudence.

The Bank is authorized to accept deposits and to mobilize financial resources through Shari'ah compatible modes. It is also charged with the responsibility of assisting in the promotion of foreign trade especially in capital goods, among member countries; providing technical assistance to member countries; and extending training
Training

The term training refers to the acquisition of knowledge, skills, and Competence as a result of the teaching of vocational education or practical skills and knowledge that relate to specific useful competencies....
 facilities for personnel engaged in development activities in Muslim countries to conform to the Shari'ah.

Shari'ah compatible practices include:
  • Loan
  • Leasing
  • Installment Sale
  • Istisna'a
  • Equity Participation
  • Lines of Financing


The unit of account of the bank is the Islamic Dinar
Dinar

File:Dinar map.pngThe Dinar is the name of the official currency in several countries. The Gold Dinar was a coin dating back to the early days of Islam, issued by many rulers, and the Islamic gold dinar is a modern revival of it as a coin or unit of account, separate from the currencies listed below....
. The Bank's financial year is the lunar Hijri year
Hijri year

The Hijra , or withdrawal, is the emigration of Muhammad and his followers to the city of Medina in 622, and marks the start of the Hijri year of the Islamic calendar....
. The official language of the Bank is Arabic, but English
English language

English is a West Germanic language that originated in Anglo-Saxon England and has lingua franca status in many parts of the world as a result of the military, economic, scientific, political and cultural influence of the British Empire in the 18th, 19th and early 20th centuries and that of the United States from the mid 20th century onwa...
 and French
French language

French is a Romance language spoken around the world by around 80 million people as first language, by 190 million as second language, and by about another 200 million people as an acquired tongue, with significant speakers in 54 countries....
 are additionally used as working languages.

Membership

The present membership of the Bank consists of 56 countries. The basic condition for membership is that the prospective member country should be a member of the Organization of the Islamic Conference, pay its contribution to the capital of the Bank and be willing to accept such terms and conditions as may be decided upon by the IDB Board of Governors.

See also

  • Islamic banking
    Islamic banking

    Islamic banking refers to a system of banking or banking activity that is consistent with the principles of Sharia and its practical application through the development of Islamic economics....
  • Economy of the OIC


External links