Areas of activity of the IDB Group, Main objectives IDB and...

Areas of activity of the IDB Group

The IDB Group is involved in a wide range of business undertakings, including:

• project financing in the public and private sectors, mainly in Muslim countries and areas of countries in which the Muslim population is represented;

• Supporting the fight against poverty;

• technical support for infrastructure projects in this group of countries;

• economic cooperation between member countries of the group;

• Financing trade between Muslim countries;

• Mobilization of resources for the development of countries;

• direct investment in Islamic financial institutions;

• analysis and preparation of training programs for participants of Islamic economies;

• Sponsorship programs, grants and other support for Muslim communities in countries that are not members of the group;

• assistance in emergency situations to Muslim and other countries;

• consulting services for entrepreneurs of Muslim countries.

Main objectives IDB and its shareholders

The main goal is the activities carried out according to the principles of the Shariah and directed to the development and social progress of member countries and Muslim communities in states that are not members of the organization. In order to achieve this goal, IDB provides loans and grants to finance the development activities of member countries and Muslim communities of states that are not members of the organization. IDB also provides technical support for the implementation of infrastructure projects and is a sponsor for the development of human capital in the participating countries. The bank manages special funds and accumulates resources in accordance with Sharia law.

The shareholders of the bank are countries, and not private banks, although they are directly involved in their activities. In Table. 15.3 the main countries-shareholders at the end of 2011 are presented.

Table 15.3. The countries-shareholders of the IDB Group as of November 25, 2011

Countries

Percentage of participation in the total capital of IDB

Saudi Arabia

23.61

Libya

9.47

Iran

8.28

Nigeria

7.69

Qatar

7.21

Egypt

7.1

Turkey

6.48

UAE

5.81

Kuwait

5.48

Source: Islamic Development Bank Group in Brief. Rajab. 2011. June. P. 10.

As can be seen from Table. 15.3, the IDB shareholders are nine countries: Saudi Arabia, Libya, Iran, Nigeria, Qatar, Egypt, Turkey, UAE and Kuwait.

Saudi Arabia, the founder of the bank, managed to attract a number of Arab and other Muslim countries to its activities, including those that have large oil and gas revenues, including Shiite Iran and Turkey.

Islamic Research and Training Institute (IRTI)

This institute was founded in 1981 as an analytical and educational-scientific division of the IDB. It plays an important role in transforming the IDB Group into a world-class organization based on knowledge and actively supporting the Islamic financial industry with the goal of socio-economic development of member states. As the center of competence concentration, IRTI conducts research, provides advice and provides capacity building in various sectors of the Islamic world economies.

The main tasks of IRTI are:

• conducting research, training and other activities for acquiring knowledge in the real and financial sectors of the economies of Islamic countries;

• organization of seminars and conferences on various issues of cooperation with national, regional and international organizations;

• Providing innovative solutions in accordance with Sharia principles;

• Provide the necessary financial resources.

In 2011, IRTI organized 42 seminars and conferences and 39 training programs, in 2012 more than 60 similar events. IRTI conducted a large number of studies and organized relevant seminars in various countries. This institution also carries out activities in the field of building the Islamic financial sector, namely:

• the development of knowledge and competence in the field of financial stability of the countries of the Islamic world;

• sustainable development of human capital through continuous learning of people;

• accumulation of knowledge about financial services in the countries where it operates;

• rewarding with special IBR prizes;

• awarding scholarships and grants to students and scholars of the Islamic world.

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