JEDDAH – The Islamic Development Bank (IDB) will double its annual funding to 30 percent starting year 2009, Dr. Ahmed Mohamed Ali, IDB president, said Wednesday at the IDB’s headquarter here.
The increase of the annual growth funding will save about $2.5 billion during next three years in order to keep more resources for supporting the economic development needs in the member countries and responding to the challenges imposed by financial global crisis.
He also Ali unveiled a “Five Years Program” to mobilize an estimated $6 billion in the form of Sukuk issuance, with the initial $500 million Sukuk to be issued soon.
The legitimacy complex is performing a very important rule in supporting the Islamic finance industry, which is considered as an essential reference to deal with global crisis, he said. “We have to invest in the means of producing the real economy by encouraging businessmen to invest in the agriculture field by utilizing their resources in real productive projects, Ali stressed.
He added that the Islamic banking, which has an important role in restructuring the global financial system, will not replace the traditional banking.
The bank president said the objective of the Sukuk is to collect funds from the international marketplace so as to support member countries affected by the global financial crisis. The crisis not only poses a challenge but also opens up opportunities which the bank is determined and competent to explore and offer to the member countries, Ali further said.
He said that the world economy suffered major setbacks because of the dramatic rise in food and energy prices and the implosion of the global financial market.