Islamic Development Bank
From Wikipedia, the free encyclopedia
| Islamic Development Bank | |
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| Type | Development Bank |
| Founded | 1973 |
| Headquarters | Jeddah, Saudi Arabia |
| Industry | Finance |
| Employees | 932 |
| Website | www.isdb.org |
Islamic Development Bank (also known as IDB), is a multilateral development financing institution located in Jeddah, Saudi Arabia. It was founded by the first conference of Finance Ministers of the Organization of the Islamic Conference (OIC), convened 18 December 1973. The bank officially began its activities on 15 Shawwal 1395H (20 October 1975). On the basis of paid-up capital, the main shareholders of the Bank are from these countries:
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[edit] Functions
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 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. The Bank's financial year is the lunar Hijri Year. The official language of the Bank is Arabic, but English and French are additionally used as working languages.
[edit] 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.
