DEFINITION

The Islamic Development Bank (IDB), a specialized institution of the OIC, is an international financing institution.  

ESTABLISHMENT

The idea of establishing this institution dates back to the 2nd Islamic Foreign Ministers Conference, held in Karachi; in 1970 which recommended to undertake an in-depth study of this project.  A Declaration of Intent was issued by the First Conference of Finance Ministers of Islamic countries, held in Jeddah, in Zul Qaddah , 1393AH (December 1973) to endorse this idea.  The Bank was formally inaugurated on 15th Shawal, 1395AH. (20 October, 1975).  

PURPOSE

The purpose of the Bank is to foster the economic development and social progress of Member States and Muslim Communities individually as well as collectively in accordance with the principles of the Shariah.  

FUNCTIONS

The functions of the Bank are to provide equity participation and grant loans for productive projects and enterprises. I also gives financial assistance to member states in other forms for their economic and social development and to foster foreign trade among member countries.  

MEMBERSHIP

The basic condition for membership is that the prospective member country be a member of the Organization of the Islamic Conference.  

ORGANIZATION AND ADMINISTRATION

The Bank is composed of:  

a) A Board of Governors

Each member state is represented in the Board and nominates a governor and an alternate governor.  

The Board meets once a year, in an ordinary session.  

b) A Board of Executive Directors

It consists of 10 members who are not members of the Board of Governors.  They are elected for a mandate of three years by the Board of Governors.  they can be re-elected.  

c) The President

He is the legal representative of the Bank and its Chief Executive Officer (CEO).  

He is elected by the Board of Governors for a period of five years and can be re-elected.

CAPITAL

The authorised capital of the Bank is six billion Islamic Dinars divided into 600,000 shares among subscriber.  The value of the Islamic Dinar, which is the unit of account of  the  Bank, is equivalent  to  one Special Drawing Right of the International Monetary Fund (SDR). The subscribed capital of the Bank is 4 billion Islamic Dinars. One Islamic Dinar =1.3 US Dollar.

HEADQUARTERS

The Bank's Headquarters is in Jeddah, Kingdom of Saudi Arabia.  

ADDRESS:

P.O. Box 5925 Jeddah, K.S.A.

Fax:  (00966-2)  6366871, 6371334, 6379080 
Telephone  : 966-2-6361400
Telex : 601137 ISDB SJ.  

Website: http://www.isdb.org/