Islamic Development Bank Announces New Investments Supporting Sustainable Development

Islamic Development Bank Announces New Investments Supporting Sustainable Development

The Islamic Development Bank’s Board of Directors recently announced a new EUR 1.2 billion investment and grants up to EUR 1.8 million to support numerous projects with both member and non-member countries.  The decision, taken by the board at a meeting at the Bank’s headquarters in Jeddah, Saudi Arabia covers a variety of sectors, including energy and transport, food security, health, urban development, education, water and sanitation. The IDB was founded in 1973 financing various development projects in support of sustainable development and local empowerment.  The recent announcement is welcomed as it supports the growing humanitarian and development needs around the world. 

The new investment package includes infrastructure support in Uganda (USD 295 million) for upgrading roads to improve access to social infrastructure and markets for the rural population.  There is also infrastructure funding for Cameron (EUR 32.25 million) in support of the local economy in the West of the country.  Support for energy production is also included with EUR 100 million for Uzbekistan to improve the efficiency of power generation.  A number of the investment projects will be developed as public-private partnerships, a development model also encouraged by the European Union (EU) institutions

IDB also approved a number of small grants (below EUR 250,000) to support specific projects in education.  A school and sports hall in Mostar, Bosnia is being funded to expand its premises for school activities as well as cultural and religious events in the community.  A Zambian academy for girls is receiving funding to improve the quality of education for girls in science and technology. 

The IDB also seeks to further partnerships through its funding support bringing together communities and states.  The IDB and the European Investment Bank have co-financed several projects in the regions where they are both active, serving as a catalysing force to attract private investments in public policy projects. Between 2005 and 2019, the two institutions have co-developed no fewer than 9 projects worth some EUR 1 billion in Lebanon, Morocco, Tunisia and several Sub-Saharan African countries. 

At the end of 2019, the two banks also signed a Memorandum of Understanding (MoU) in Luxembourg to invest USD 1 billion in development projects in several African and Middle Eastern countries. The projects developed under this MoU aim to support sustainability goals and the global fight against climate change. Projects spanning areas as diverse as technology, innovation and education have also been financed contributing to the creation of more jobs and economic growth in the most fragile countries of the region.  As the world continues to deal with a range of challenges, further cooperation between multilateral funding agencies in support of sustainable development is to be encouraged. 

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