1. The Islamic Development Bank Group
Together We Build a Better Future
Islamic Finance Seminar, Sao Paulo, Brazil, October 4, 2010

2. Contents Vision 1440H (2020) Structure Products and Services
Portfolio and Activity Highlights
Cooperation with other Institutions

3. Vision 1440H (2020)
“ By the Year 1440H (2020) IDB shall have become a world-class development bank, inspired by Islamic principles, that has helped significantly transform the landscape of comprehensive human development in the Muslim world and helped restore its dignity.” 3

4. Mission Statement
“We are committed to alleviating poverty, promoting human development, science & technology, and Islamic banking & finance, and enhancing cooperation among member countries, in collaboration with development partners”
Source: AHDR

5. Agenda for the Future: Responding to the Development Challenge of the Ummah (The IDB Vision 1440H & OIC 10 Year Plan of Action)
The Strategic Challenges Confronting the Muslim World :
Achieving healthy human development
Securing strong and sustainable economic growth
Promoting good governance
Strengthening peace and stability
Fostering a powerful sense of common identity, consciousness, and empathy
Restoring the Image of Islam and the Muslim world
Source: AHDR 5

6. IDB: Six Priority Areas
Human Development
Agriculture Development and Food Security
Infrastructure Development
Intra-trade Among Member Countries
Private Sector Development
Research and Development in Islamic Economics, Banking and Finance

7. Key Elements of IDB Group 2020 Vision
A Vision for Comprehensive Human Development
Integration of IDB MCs Economies
Improving the Image of the Muslim World
Key Strategic Thrusts
Universalizing Education
Empowering Women
Promoting Health
Alleviating Poverty
Expanding Islamic Financial Industry
Prospering the People 7

8. Contents Structure Vision 1440H (2020) Products and Services
Portfolio and Activity Highlights
Cooperation with other Institutions

9. IDB Group Organizational Structure
Islamic Development Bank (IDB)
Islamic Research & Training Institute (IRTI)
International Islamic Trade Financing Corporation (ITFC)
Islamic Corporation for the Development of the Private Sector (ICD)
Islamic Corporation for Insurance of Investment & Export Credit (ICIEC) 9 9

10. Islamic Development Bank
Definition of Key Terminology
Principles of Islamic Shari’ah Governing Islamic Finance:
Prohibition of Interest (Riba) in all financial transactions
Prohibition of deception, incomplete disclosure of information and sale of prohibited items and gambling, etc
Speculation and excessive leveraging is forbidden
All transactions are based on real assets
Entitlement to return is due to liability of loss and vice versa
Unlawful earnings , expenditures or fraud is prohibited
Dealings are based on trust, honesty and integrity
Islamic Dinar (ID):
The Unit of Account of IDB, which is equivalent to One Special Drawing Rights (SDR) of the International Monetary Fund (IMF) 10

11. Islamic Development Bank
(IDB)
Established in 1975 to foster socio-economic development in member countries and Muslim communities in compliance with Shari’ah.
Authorized capital of US$ 45 billion
Subscribed capital of US$ 22 billion
Paid-up capital of US$ 5.3 billion
AAA rating by Moody’s Investors Service, Fitch Ratings, Standard & Poors.
Zero-Risk Rating by the European Parliament 11 11

12. Islamic Research & Training Institute (IRTI)
Established in 1981 to undertake applied & basic research in Islamic Economics and Finance. Activities include:
Research Seminars & Conferences
Training Courses
Publications
IDB Prize in Islamic Economics, Banking & Finance
IRTI Scholarship for PhD in Islamic Banking 12 12

13. Business Insured in 2009 : over US$ 1 billion
Islamic Corporation for Insurance of Investment & Export Credit (ICIEC)
Established in 1994 to provide Shari’ah-compatible export credit insurance, political risk insurance, technical assistance.
Capital Structure (66.7% IDB, 33.3% MCs) : Total authorized capital US$ 231 million, subscribed capital US$ 228 million
Business Insured in 2009 : over US$ 1 billion
Cumulatively, as of December 2009 :
- Business Insured US$ 6.35 billion
- in more than 37 member countries
Insurance Financial Strength Rating of Aa3 by Moody’s Investors Service 13 13

14. Islamic Corporation for the Development of the Private Sector (ICD)
Established in & commenced its operation in July 2000
Mandated to promote private sector development and to offer advisory services to the private sector entities in member countries.
An authorized capital of US$ 2 billion, paid up capital of US$ 470 million.
47 Islamic Countries are members of which 21 are in Africa.
Capital Structure (50% IDB, 30% MCs, 20% Financial Institutions).
As of December 2009, cumulative business :
- Approvals : 185 Projects amounting to US$ 1.59 billion
- in more than 32 member countries 14 14

15. International Islamic Trade Financing Corporation (ITFC)
Commenced business activities in January It promotes and enhances intra-trade and trade cooperation among 57 member countries of the Organization of Islamic Conference (OIC) through trade financing and promotion programs;
Authorized Capital : US$ 3.0 billion
Subscribed Capital : US$ 750 million
Managing Funds for other institutions : US$ 1.0 billion
Year 2009 Trade Finance Approvals : US$ 2.1 billion
Cumulatively Trade Financing, end 2009 : US$ 4.6 billion 15 15

16. IDB Organizational Structure BOARD OF EXECUTIVE DIRECTORS
BOARD OF GOVERNORS
Group Shari’ah Board
Group Operations Evaluation
BOARD OF EXECUTIVE DIRECTORS
General Council
Group Internal Audit
Group Ombudsman
IDB
President
Group Risk Management
Group Integrity Officer
Group Strategic Planning
World Waqf Foundation VP
(Fin.) VP
(Opr.) VP
(CorpServ.)
Chief Econ. 16

17. IDB Regional Offices Regional Offices
Almaty Kazakhstan
Dakar, Senegal
Regional Offices
Rabat, Morocco
Kuala Lumpur, Malaysia
In addition, there are currently 12 Field Representatives in some countries

18. Growth in IDB Membership
Europe: 2
Asia: 26
Africa: 27
Latin America: 1
A Unique Model of South-South Cooperation
56 members spreading over 4 continents
22 countries in 1975 → 56 countries in 2009

19. Shareholders in IDB (As % of Subscribed Capital)

20. Contents Products and Services Vision 1440H (2020) Structure
Portfolio and Activity Highlights
IDB Group Reform
Cooperation with other Institutions & the African Development Bank

21. IDB Group Products and Services
Financing of Projects (Public and Private)
Promoting the Islamic Financial Industry
Trade Finance and Promotion
Capacity Building and Technical Cooperation
Risk Insurance
Research and Training
Fund/ Assets Management 21

22. IDB Group Special Activities
NGOs and Women-In-Development (WID)
Scholarship Programs
Science & Technology Program
Investment Promotion Technical Assistance Program (ITAP)
Trade Cooperation & Promotion Program (TCPP)
Special Assistance 22 22

23. IDB Group Special Programs (1)
Technical Cooperation Program (TCP)
Capacity Development (exchange of experts, training, etc.)
Supporting civil societies through NGOs
Supporting women-in-development initiatives
Investment Promotion Technical Assistance Program (ITAP)
Promote Intra-Investment among OIC MCs
Capacity Building of Investment Promotion Agencies
Dissemination of Investment opportunities
Investment Information Network
Intra-Investment Statistics on MCs
Trade Cooperation & Promotion Program (TCPP)
Exhibitions, Trade Fairs and Buyers-sellers Meetings
Capacity Building of Export Promotion Agencies
Consultative Meeting on Aid-for-Trade
Promote regional Cooperation 23 23

24. IDB Group Special Programs (2)
- Special Assistance and Scholarships
Provide Relief & Alleviation of suffering in case of natural disasters
Support development of Muslim minorities in non-MCs
Scholarships for Muslim communities in non-MCs.
M.Sc. Program for the Least Developed Member Countries
Merit Scholarship Programs for High Technology
- Science and Technology Program
Capacity development in areas of Science and Technology
Inter-Islamic S&T Network
IDB Prize for Science & Technology to Promote Excellence in Research & Development
Self Reliance in Vaccine Production

25. Modes of Financing Interest-Free Loan Leasing Installment Sale
Construction Finance (Istisna’a)
Equity
Line of Financing
Technical Assistance (Loan & Grant)
Murabaha (Trade Financing)

26. The Islamic Development Bank Group: Current Areas of Intervention
Financing of Projects (Public and Private)
Developing the Islamic Financial Industry
Trade Financing and Promotion of Cooperation
Capacity Building
Agriculture
Infrastructure
Industry
Education
Health
SMEs, microfinancing
Other sectors
Equity participation in Islamic financial institutions
Developing Regulatory framework
Research and training
Financing imports
Financing exports
Promoting trade cooperation
Disseminating of skills (exchange of experts, training, etc.)
Supporting civil societies through NGOs
Supporting women-in-development initiatives
IDB/ICD
IDB/ICD
ITFC
IDB/IRTI 26

27. The Islamic Development Bank Group: Current Areas of Intervention (Cont’d)
Risk
Insurance
Research and Training
Asset Management
Special Assistance
and Scholarships
Country risk
Short- and medium-term commercial risks
Coverage of banks for Islamic financing products
Islamic banking and finance
Islamic economics
Training in related fields
Awqaf assets
Investment portfolios
Equity funds
Venture capital funds
Support to Muslim minorities in non-MCs
Alleviation of natural disasters
Scholarships for Muslim communities in non-MCs.
Merit Scholarship Programs
ICIEC
IRTI
IDB/ICD
IDB 27

28. Contents Portfolio and Activity Highlights Vision 1440H (2020)
Structure
Products and Services
Portfolio and Activity Highlights
Cooperation with other Institutions

29. Net Approved Financing IDB Group (Since Inception to End 2009) (Not Including ICD & ICIEC)
Type of Operation
US$ billion
1- Development Projects
28.14
2- Technical Assistance
0.29
3- Trade Operations
34.78
4- Special Assistance
0.68
TOTAL
63.90

30. Approved IDB Group Financing (Since Inception to End 2009) US$ billion
Net Cum. End 2009 = US$ billion

31. Cumulative Sectoral Distribution (Projects & TAs from OCR)

32. IDB GROUP ANNUAL NET APPROVALS (1975-2009) US$ million
Cumulative $ 63.9 billion

33. OPERATIONS PLAN ( OP Complex - Year 2010)
Total Operations Plan : US$ 3.72 billion
- US$ 39 million Grants Financing
- US$ 381 million Concessional Loans
- US$ 3.30 billion Ordinary Financing

34. Operational Highlights
Rural electrification, power generation & distribution
Transport (highways and roads) and telecom
Microfinance capacity building and lines of finance
Dams, irrigation, water supply
Agricultural and rural development projects
Industry, petroleum & gas
Primary and secondary education
Higher education (engineering and medical)
Health centers, rural hospitals, specialized facilities 34

35. Supporting Islamic Finance
Investments in Islamic Banks & Financial Institutions
Capacity Building for Islamic Banks
Introduction and Dissemination of Islamic Modes of Financing, and Developing Knowledge
Developing the architectural foundation of the Islamic financial Industry, by establishing and supporting crucial institutions 35

36. Supporting Islamic Financing
Accounting & Auditing Org. for Islamic Financial Institutions (AAOIFI)-1991
General Council for Islamic Banks and Financial Institutions (CIBAFI)-2001
International Islamic Financial Market (IIFM)-2002
Islamic Financial Services Board (IFSB)-2002
Liquidity Management Centre (LMC)-2002
International Islamic Rating Agency (IIRA)-2002
International Islamic Centre for Reconciliation & Arbitration (IICRA)-2005

37. Islamic Solidarity Fund for Development (ISFD)
A dedicated facility to fight poverty
Launched - IDB BOG Annual Meeting (Dakar 2007)
Target Endowment of US$ 10 billion
Current IDB and MCs contribution of US$ 2.6 billion
Two Pilot Programs already approved:
Vocational Literacy (VOLIP)
Microfinance Support (MFSP)

38. Contents Vision 1440H (2020) Structure Products and Services
Portfolio and Activity Highlights
Cooperation with other Institutions

39. Contents Cooperation with other International Institutions
Vision 1440H (2020)
Structure
Products and Services
Portfolio and Activity Highlights
Cooperation with other International Institutions

40. Cooperation with Other International Institutions
Multilateral Financing Institutions
(WB; AfDB; ADB; EIB; EBRD; etc.)
Regional & International Organizations (IMF; IFAD; FAO; UN; UNDP; UNEP; WHO; WMO; UNESCO; GCC; etc.)
National Financing Institutions / Bilateral Funding Agencies (DFID, JICA, JBIC; KFW; AFD; GTZ; IDRC; CIDA; SIDA; NORAD; etc.)
Arab Coordination Group

41. Islamic Development Bank Group
A Strategic Partner for Development

42. Thank you 42 42