Islamic Development Bank

Islamic Development Bank was formally inaugurated in 20 October 1975 in Jeddah as a specialized organ of the Organization of the Islamic Conference/The Organization of Islamic Cooperation.

The main functions of the Bank are;

-to provide equity participation to the institutions or projects in the member states,

-to finance the public and private projects in the member states,

-to give financial assistance to the member states for their economic and social development and to support the enhancement of foreign trade among member states,

-to provide technical assistance to member states,

-to enhance the education opportunities of the employee in charge of the development activities.

The Group of Islamic Development Bank is comprised of Islamic Development Bank (IDB), Islamic Research and Training Institute (IRTI), Islamic Corporation for the Development of the Private Sector (ICD),Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and International Islamic Trade Finance Corporation (ITFC).

The Bank also incorporates Islamıc Solidarity Fund for Development and the funds supporting the Palestine (Al Aqsa and Al-Quds Funds, GCC Fund, Kuwait Fund and OIC Al Quds Fund and Al Quds Fund).

The authorized capital of the Bank is increased to 139 billion Dollars and the subscribed capital of the Bank is increased to 70 billion Dollars. By the end of 2017 the paid-up capital is 7,5 billion Dollars and equity capital is 11,8 billion Dollars. The biggest shareholder of the Bank is Saudi Arabia (% 23,50), followed by Libya, Nigeria, UAE, Qatar, Egypt and Kuwait.

Since 2002, the Bank has been rated by the international rating agencies – Standard & Poor’s, Fitch and Moody’s with the issuer default rating AAA.

Since its establishment, the Bank has provided 128,7 billion Dollars financial support for 8223 projects.

The Bank and Our Country

Since its establishment, 450 of the 8223 projects supported by the Bank has been carried out in our country. Turkey is the uppermost according to the number of the projects supported by the Bank.

The Bank has approved in total 10,4 billion Dollar financial assistant for Turkey until now. The sectors mostly benefited from these assistants are, according to the quantity of the projects, “the other sectors” (227) including the credits for public administration and trading activities, finance (11), industrial, mining (24) and agricultural sector (21).

In 2017, Turkey is the second country (1.026 billion Dollars, % 10,5) financed by the Bank after Egypt (%13,7).

Turkey, among the 22 founding members of the Bank, is the 9^th shareholder of the capital with the ratio of %6,45.

The Member Country Partnership Strategy (MCPS)

The Bank, for the MCPS process, has selected Turkey as the pilot country. In the framework of the first MCPS during the period of 2010-2013, Turkey would be granted 1.9 billion Dollars financial support in the fields of education, energy, transportation, disaster management and development of the private sector.

At the end of the period, the amount of the allocation approved by the Bank is 2.866 billion Dollars with % 150 realization rate. Thereupon, the existing strategy has been updating again.

Updating process is predicted to be completed in November 2018 and the second MCPS would be initiated to implement in 2019.