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Arab News
6 days ago
- Business
- Arab News
IsDB drives development across over 2 percent of world's countries
JEDDAH: A year after marking its 50th anniversary, the Islamic Development Bank remains at the forefront of global development finance, recognized for its distinctive model that blends Shariah finance principles with strategic investments. Established in August 1974 and commencing operations in October the following year in Saudi Arabia, the IsDB has grown into a distinctive institution within the global development landscape, championing ethics, equity, and solidarity among its 57 member countries and impacting one in five people worldwide. The bank was founded through a visionary initiative led by Saudi King Faisal bin Abdulaziz and other Islamic leaders to foster development cooperation among member states of the Organization of Islamic Cooperation and enhance the wellbeing of Muslim communities. Financial strength The IsDB is recognized as one of the world's most active multilateral development banks and a global leader in Islamic finance. It boasts prestigious AAA credit ratings by Moody's, S&P, and Fitch — reflecting its strong financial stability and low risk. With a subscribed capital of $76 billion, the bank is well-positioned to support large-scale development projects and foster economic growth across its member countries. The Jeddah-based organization has evolved into a group of five institutions representing member states across four continents, with total approvals exceeding $182 billion for more than 12,000 development projects, as of April 2024. Built on strong partnerships and trusted governance, the bank continues to promote sustainable socioeconomic development. Saudi Arabia's enduring support remains crucial as the IsDB charts its strategic future, committed to tackling today's challenges and strengthening solidarity throughout the Muslim world. Among its strongest partnerships is with Turkiye, a founding member that has received nearly $13 billion in IsDB approvals across 545 projects. In April 2024, both sides launched a new $6.3 billion framework to boost sustainability, productivity, Islamic finance, and digital transformation, reaffirming the bank's long-term commitment to Turkiye's development. Speaking to Arab News, Abdulmohsen Al-Alshiekh, assistant professor and board member of the Saudi Economic Association, said over the past five decades, the IsDB has played a critical role as a development catalyst across the Islamic world. He added that its effectiveness can be assessed on several fronts, including Infrastructure development, human capital investment, Shariah-compliant financing, crisis response, and South-South cooperation. 'IsDB has financed thousands of projects in transport, energy, water, and urban development, significantly improving connectivity and public services across its member countries,' Al-Alshiekh said. He added that through scholarship programs, capacity-building initiatives, and education sector support, IsDB has contributed to advancing education, vocational training, and knowledge economies in low- and middle-income member states. As for the bank's Islamic law financing compliance, Al-Alshiekh said that one of IsDB's unique strengths is its adherence to Islamic finance principles. 'By promoting risk-sharing and asset-backed investments, it has provided an alternative to interest-based lending and contributed to the growth of the Islamic finance industry globally,' he added. Crisis response Al-Alshiekh said the bank has shown agility in responding to global crises, including the COVID-19 pandemic, by mobilizing special funds, providing concessional financing, and supporting resilience and recovery efforts in vulnerable member countries. He added that the bank continues to foster cooperation among member states through trade finance, investment insurance, and technology transfer initiatives, reinforcing its role as a key platform for intra-OIC economic collaboration. Development reach Al-Alshiekh noted that countries across sub-Saharan Africa, the MENA region, South Asia, and Southeast Asia have benefited from IsDB's interventions, underscoring several priority sectors including infrastructure, education, health, agriculture, and trade. 'These investments have helped close infrastructure gaps and improve regional integration, especially in landlocked and low-income countries,' he added. On education and health, the assistant professor said the IsDB has funded scholarships, technical training, hospitals, and pandemic response. It has also supported irrigation, rural development, and agribusiness in sub-Saharan Africa and South Asia to fight poverty and boost food security. 'Countries such as Senegal, Niger, Nigeria, and Sudan have received substantial support in infrastructure, agriculture, and education,' he said. Countries recovering from conflict or facing economic challenges, such as Yemen, Egypt, Morocco, and Tunisia, have received significant assistance, while Bangladesh, Pakistan, Indonesia, and the Maldives have also benefited from a mix of infrastructure, health, and education investments, Al-Alshiekh added. Unequal model Unlike conventional multilateral development banks, all the bank's financial transactions comply with Islamic principles. 'One of IsDB's unique strengths is its adherence to Islamic finance principles,' Alalshiekh said 'By promoting risk-sharing and asset-backed investments, it has provided an alternative to interest-based lending and contributed to the growth of the Islamic finance industry globally.' Youssef Saidi, a research fellow at the Economic Research Forum, emphasized the importance of distinguishing the IsDB's model from that of conventional multilateral development banks. 'To understand the unique contributions of the IsDB, it is essential to examine how its development model contrasts with those of the conventional multilateral development banks, which often focus on standardized approaches that may not fully address the unique needs of developing countries, potentially limiting their effectiveness in fostering sustainable growth,' Saidi told Arab News. He added that the IsDB focuses on Islamic finance principles, socio-economic development, and innovative approaches to financing and project implementation. 'These characteristics emphasize the importance of adaptability and responsiveness to the specific needs of member countries, which is essential for effective development financing,' he said. He noted that this adaptability allows the IsDB to forge partnerships that boost funding and enhance project delivery, similar to other multilateral development banks. Future priorities As the global development landscape becomes increasingly complex, both Saidi and Al-Alshiekh agree that the IsDB must recalibrate its strategic focus to address emerging challenges. 'The challenges facing the IsDB include addressing governance issues, ensuring effective resource allocation, and adapting to the evolving needs of its member countries to enhance development outcomes,' Saidi said. To maintain its relevance, the IsDB must navigate challenges such as regional disparities in development, ensuring equitable resource allocation, and fostering innovation in Islamic finance practices, he also said. Looking ahead, Al-Alshiekh said the IsDB is expected to broaden its role in key areas such as climate action through green sukuk, private sector partnerships focused on small and medium enterprises, fintech, digital infrastructure and e-governance, and support for fragile regions via stabilization funds and humanitarian-development-peace frameworks. Enduring values While the IsDB shares several features with conventional development banks, including alignment with the UN Sustainable Development Goals, it remains rooted in a distinct ethos. 'Unlike conventional MDBs, IsDB operates entirely on Islamic finance principles. This means it avoids interest-bearing loans and instead uses instruments like Murabaha, or cost-plus sale, ijara, or leasing, and istisna'a, or construction financing, as well as sukuk,' Al-Alshiekh explained. He added that the IsDB's approach is value-based, emphasizing ethical finance, social justice, and equitable growth that aligns with Islamic principles. 'This contrasts with the often secular and market-oriented frameworks of conventional MDBs.' Governance is another differentiator. 'IsDB's governance model is rooted in the OIC (Organisation of Islamic Cooperation), with its members being exclusively Islamic countries,' he said. This allows for a greater cultural and strategic alignment among its stakeholders, while conventional MDBs tend to have a broader, more diverse global membership, he noted. Al-Alshiekh also underlined the principle of solidarity that guides the bank's resource allocation. 'The IsDB emphasizes 'Islamic solidarity', often prioritizing needs-based resource allocation and South-South cooperation, in contrast to performance-based lending criteria or conditionalities common in conventional MDBs,' he said.
Zawya
20-07-2025
- Politics
- Zawya
UAE inaugurates first-of-its-kind SDG exhibition at UN HQ
New York-USA – The UAE has held its first national exhibition at the United Nations (UN) Headquarters in New York City, as part of the High-Level Political Forum (HLPF) on Sustainable Development 2025. Titled "Shaping Tomorrow: UAE Leadership for a Sustainable Future", the exhibition reflects the UAE's commitment to expanding international action to achieve SDGs, as well as its involvement in shaping the future of global development. The inauguration was attended by Her Excellency Amina Mohammed, UN Deputy Secretary-General; His Excellency Ambassador Mohamed Abushahab, Permanent Representative of the UAE to the UN; His Excellency Abdulla Nasser Lootah, Assistant Minister of Cabinet Affairs for Competitiveness and Experience Exchange and Chair of the National Committee on Sustainable Development Goals, and head of the UAE delegation participating in the HLPF; alongside representatives from international organizations and government delegations from around the world. Platform for Showcasing Inclusive Development The exhibition was organised jointly by entities including the Ministry of Interior, Ministry of Investment, Environment Agency - Abu Dhabi (EAD), Dubai Chambers, and Noor Dubai Foundation, a member of Mohammed bin Rashid Al Maktoum Global Initiatives (MBRGI). The entities showcased their experiences and globally replicable initiatives in sustainable development, including in innovation, climate action, community empowerment. Beyond 2030: Four Pillars for Development The exhibition is the first of its kind organised by the UAE at the UN HLPF. It offers an interactive experience that highlights the UAE's journey in supporting sustainable development goals since the Rio Summit in 2000. The exhibition represents an extension of the dialogue initiated by the UAE in the Government Experience Exchange Programme with more than 170 leaders and decision-makers during the World Government Summit 2023. The exhibition presents the framework of sustainable development goals as an ambitious vision for the UAE beyond 2030, based on four main pillars: integrating sustainability into national policies and legislation; monitoring impact through accurate indicators and data; developing a flexible development model through 'Future Zones'; and enhancing international partnerships through knowledge sharing, particularly through the Government Experience Exchange Programme. HE Abdullah Lootah: the Exhibition Reflects UAE's Commitment to a More Sustainable Future His Excellency Abdulla Nasser Lootah said: 'The UAE is committed to sharing best practices and successful experiences with partners around the world. The 'Shaping Tomorrow" exhibition embodies the UAE's vision for a global development pathway based on partnership, knowledge sharing, and innovation. This reflects the UAE's approach to creating solutions that can be scaled globally and reflects its commitment to supporting global dialogue on the post-2030 era. This includes initiatives like the Government Experience Exchange Programme.' National Initiatives Supporting Global Goals The exhibition highlighted major national development efforts that have had global impact. The Ministry of Interior showcased its "Green Justice" initiative in Latin America, aimed at combating transnational environmental crimes, as part of its efforts supporting SDG 17. Meanwhile, the Abu Dhabi Fund for Development (ADFD) presented its contributions to financing projects in 100+ countries, supporting infrastructure, education, and renewable energy. The Supreme Committee for Motherhood and Childhood showcased its initiatives aimed at empowering women and children, including the "National Child Empowerment Guide" and the "Emirati Children's Parliament," which enhance children's participation in decision-making in support of SDG 5. Noor Dubai Foundation presented its model for combating visual impairments in support of SDG 3. This includes the iBSAR project in Asia and Africa, which provides preventive and therapeutic care. EAD showcased its efforts in protecting marine ecosystems through initiatives such as the "Marine Turtle Protection Program" and smart monitoring technologies for coral reefs, aligning with SDG 14. UAE Model for Integrated Development These initiatives exemplify the integration between the UAE's national vision and its global commitments, by linking local policies with international development goal.
The National
10-06-2025
- Business
- The National
Antonio Guterres: We need a rescue plan for sustainable development
This month, leaders will gather in Sevilla, Spain, on a rescue mission: to help fix how the world invests in sustainable development. The stakes could not be higher. A decade after the adoption of the Sustainable Development Goals and many global commitments to finance them, two thirds of the targets are lagging. And the world is falling short by over $4 trillion annually in the resources developing countries need to deliver on these promises by 2030. Meanwhile, the global economy is slowing, trade tensions are rising and aid budgets are being slashed while military spending soars and international co-operation is under unprecedented strain. The global development crisis is not abstract. It is measured in families going to bed hungry, children going unvaccinated, girls being forced to drop out of school and entire communities deprived of basic services. We must correct course. That begins at the Fourth International Conference on Financing for Development in Sevilla, where an ambitious, globally supported plan to invest in the Sustainable Development Goals must be adopted. That plan should include three essential elements. First, Sevilla must help accelerate the flow of resources to the countries who need it most. Fast. Countries must be in the driver's seat, mobilising domestic resources by strengthening revenue collection and addressing tax evasion, money laundering and illicit financial flows through international co-operation. This would provide much-needed resources to prioritise spending on areas with the greatest impact such as education, health care, jobs, social protection, food security and renewable energy. At the same time, national development banks, regional and Multilateral Development Banks need to come together to finance major investments. To support this, the lending capacity of these banks needs to triple so developing countries can better access capital on affordable terms with longer timelines. This increased access should include re-channeling of unconditional reserve assets – or Special Drawing Rights – to developing countries, preferably through Multilateral Development Banks to multiply their impact. A decade after the adoption of the Sustainable Development Goals and many global commitments to finance them, two-thirds of the targets are lagging Private investment is also essential. Resources can be unlocked by making it easier for private finance to support bankable development projects and by promoting solutions that mitigate currency risks and combine public and private finance more effectively. Throughout, donors must keep their development promises. Second, we must fix the global debt system. It is unfair and broken. The current borrowing system is unsustainable, and developing countries have little confidence in it. It's easy to see why. Debt service is a steamroller crushing development gains, to the tune of more than $1.4 trillion a year. Many governments are forced to spend more on debt payments than on essentials like health and education combined. Sevilla must result in concrete steps to reduce borrowing costs, facilitate timely debt restructuring for countries burdened by unsustainable debt, and prevent debt crises from unfolding in the first place. In advance of the conference, a number of countries put forward proposals to ease the debt burden on developing countries. This includes making it easier to pause debt service in times of emergency; establishing a single debt registry to strengthen transparency; and improving how the IMF, World Bank and credit-ratings agencies assess risks in developing countries. Finally, Sevilla must raise the voice and influence of developing countries in the international financial system so it better serves their needs. International financial institutions must reform their governance structures to enable greater voice and participation of developing countries in the management of the institutions they depend on. The world also needs a fairer global tax system, one shaped by all governments – not just the wealthiest and most powerful. The creation of a 'borrowers club' for countries to coordinate their approaches and learn from one another is another promising step toward addressing power imbalances. The meeting in Sevilla is not about charity. It's about justice, and building a future in which countries can thrive, build, trade and prosper together. In our increasingly interconnected world, a future of haves and have-nots is a recipe for even greater global insecurity that will keep weighing down progress for all. With renewed global commitment and action, Sevilla can spark new momentum to restore a measure of faith in international co-operation and deliver on sustainable development for people and planet.
Indian Express
18-05-2025
- Health
- Indian Express
How AI can help personalise and predict health care
In this episode of Our Own Devices, our host Nandagopal Rajan, COO, The Indian Express Online is joined by Kalavathi GV, Executive Director & Head, Global Development Center, Siemens Healthineers. Our guest today, explores the connection between AI and Healthcare. She explains how artificial intelligence has the power to enable diagnosis during early onset of a disease and how it can empower the health care professionals and physicians to focus on the patient and the treatment more than anything else. She also shares how digital twinning can make a person understand how a disease will impact them in the long run. To learn how AI can aid in the world of healthcare and make sure it reaches more and more people, tune into today's episode of Our Own Devices with Nandagopal Rajan. Produced by Niharika Nanda Edited and mixed by Suresh Pawar
Yahoo
28-01-2025
- Business
- Yahoo
ING Group inks deal to exit Russia
Dutch financial firm ING Group announced on Tuesday that it has finalized an agreement to sell its Russian business to Global Development JSC, a company owned by a Moscow-based investor. Under the terms, Global Development will acquire ING Bank (Eurasia) JSC, taking over all Russian onshore activities and staff. The transaction, to be closed in the third quarter of 2025, will effectively end ING's activities in Russia. ING expects a negative profit and loss (P&L) impact of around €0.7 billion ($0.73 billion) post tax. This includes an estimated book loss of around €0.4 billion, representing the difference between the sale price and the book value of the business, which would have a negative impact of about five basis points on ING's Common Equity Tier 1 (CET1) ratio. It also includes an estimated negative impact of approximately €0.3 billion from recycling the currency translation adjustment through P&L. This currency translation adjustment recycling will not affect ING's CET1 ratio and net profit. Post transaction, ING will continue to further reduce its offshore exposure to Russian clients. This exposure, which is booked by other ING entities outside of Russia, amounted to €1 billion as of September 30, 2024, of which €0.5 billion is under Export Credit Agency (ECA) or Credit and Political Risk Insurance (CPRI) cover. Upon the completion of the acquisition, Global Development intends to continue to serve customers in Russia under a new brand. Sign in to access your portfolio
