Islamic nations face snags: IDB exec
Published on: Tuesday, March 17, 2020
By: David Thien
Kota Kinabalu: Sixty per cent of the world’s conflict happened or is ongoing in Muslim nations,especially among the 57 OIC member countries, impeding meaningful investment for growth and progress.Tunisian Mohamad Abida (pic), the speaker representing the Islamic Development Bank (IDB) said this to the audience at the recent World Islamic Economic Forum 2020 at the Magellan Sutera Resort.
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His paper “Beyond FDI: Building Endogenous Capabilities through ecosystem development” touched on promoting the Islamic Development Bank (IDB) Centre of Excellence in Kuala Lumpur, its three pillars of excellence in Islamic Finance, Halal Industry and Science, Technology and Innovation to help Muslims.
“The major obstacles and challenges for investment in OIC countries are political instabilities, macroeconomic vulnerabilities, infrastructure challenges, quality of institutions, investment barriers, and limited trade openness,” he said.
The Islamic Development Bank is a multilateral development finance institution that is focused on Islamic finance located in Jeddah, Saudi Arabia.
Mohamad Abida was a replacement speaker after others listed on the official programme book were no-show probably due to the Covid-19 declared a pandemic. Pertinent to Sabah’s case, he mentioned that OIC countries suffering power outages and slow internet broadband speed could not possibly tell its people to work from home to prevent Covid-19 infection.
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Fellow Session 2 on Investment replacement speaker Tan Sri Abdul Majid Khan told the audience that the Islamic Development Bank is another financing option for them to consider, if facing problems with other financial institutions.
Dr Bandar Hajjar, President of the Islamic Development Bank (IDB), met with Tun Mahathir Mohammad, Prime Minister of Malaysia in the past in Putrajaya and discussed ways and means to strengthen the already excellent relationships between the IsDB and Malaysia after Mahathir chaired the IDB Vision 1440H (2020) Commission in the past.
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It was reported that Dr Hajjar shared with the Prime Minister his five - year Presidential Programme for the IDB which was designed as an implementation mechanism of the Vision 1440H aimed at helping to foster decentralisation, financial sustainability and innovation. This is to address the rapid increasing needs of the Bank’s member countries with the IsDB Regional Hub in Kuala Lumpur transformed into a Centre of Excellence focusing on five key areas, namely: Science, Technology and Innovation, Islamic Finance, Technology Transfer, Resource Mobilization and Halal Industry.
Mahathir supported the Orientation of the IsDB towards promoting Science, Technology and Innovation. In April 2018, the bank launched “Transform”, a US$500 million fund, which will provide seed money for start-ups and SMEs to develop their ideas and facilitate the commercialisation of technology among the IsDB’s member countries.
The Islamic Development Bank (IDB) is an international financial institution established in pursuance of the Declaration of Intent issued by the Conference of Finance Ministers of Muslim Countries held in Jeddah in Dhul Qadah 1393H (December 1973).
The Inaugural Meeting of the Board of Governors took place in Rajab 1395H (July 1975) and IDB formally commenced operations on 15 Shawwal 1395H (20 October 1975).
The purpose of IDB is to foster economic development and social progress of member countries and Muslim communities in non-member countries individually as well as jointly in accordance with the principles of Shariah (Islamic law).
The main function of IDB is to provide various forms of development assistance for poverty alleviation, human development, forging economic cooperation, promoting trade and investment, and enhancing the role of Islamic finance in the social and economic development of member countries.
It also establishes special funds for specific purposes including a fund for assistance to Muslim communities in non-member countries. IDB mobilises financial resources using Shariah compliant modes and provides technical assistance to member countries, including provision of training facilities for personnel engaged in development activities in member countries.
The present membership of IDB stands at 57 countries spreading into different continents and regions. The basic condition for its membership is that the prospective country should be a member of the Organisation of the Islamic Conference, pays the first installment of its minimum subscription to the Capital Stock of IDB, and accepts any terms and conditions that may be decided upon by the Board of Governors.
Pursuant to the decision of the Board of Governors in their 31st Annual Meeting held in Kuwait in Jumad Awwal 1427H (May 2006), the Authorised Capital of IDB was doubled from ID15 billion to ID30 billion and the Issued Capital was also increased from ID8.1 billion to ID15 billion.
The Issued Capital was further increased to ID16 billion by the Board of Governors in their 33rd Annual Meeting held in Jeddah, Kingdom of Saudi Arabia on 29-30 Jumad Awwal 1429H (3-4 June 2008); of which ID15.1 billion was subscribed with ID3.3 billion Paid-up as of end-1429H.
Headquartered in Jeddah, Saudi Arabia, IDB has four regional offices in Rabat, Morocco; Kuala Lumpur, Malaysia; Almaty, Kazakhstan; and Dakar, Senegal. Financial Year IDB financial year.
The accounting unit of IDB is the Islamic Dinar (ID) which is equivalent to one SDR – Special Drawing Rights of the International Monetary Fund.
Language The official language of IDB is Arabic, but English and French are additionally used as working languages.
Scientists, Innovators, Startups, SMEs, Private Firms, Governments and Non-Governmental Organizations, and Academic or Research and Development Institutions in IsDB Member and non-member countries, which need funding support to develop their innovative ideas and projects into solutions can apply now to the Transform Fund from Wednesday April 1, 2020.
The Islamic Development Bank (IsDB) has established a special Fund, known as Science, Technology and Innovation Transform Fund (IsDB-STIF) to support its Member Countries in finding practical solutions to key development challenges related to six focused Sustainable Development Goals through the power of innovation.
Science, technology and innovation (STI) are continuously recognised as strategic drivers of economic growth. With the right tools and convenient environment, innovators and the business community can tap on the potential of STI to develop innovation solutions for the development issues facing their communities, through boosting skills, sourcing ideas and knowledge transfer.
That is why the IsDB has put Science, technology and Innovation at the heart of its growth strategy, investing heavily in these sectors through its flagship programmes, the “Engage” Platform and “Transform” Fund.
“Engage” is a digital hub to create a global innovation ecosystem for the world’s developing communities, connecting innovation with market opportunities and funding.
Closely aligned to the Sustainable Development Goals (the UN Global Goals), “Engage” focuses on accelerating progress towards achieving greater food security, healthier lives, inclusive and equitable education, sustainable management of water and sanitation, access to affordable and clean energy, and sustainable industrialisation across the developing world.
It is a place to interact with and incubate imaginative ideas that will address sustainability challenges, providing the perfect online environment to engage with a large network of influential global stakeholders.Stay up-to-date by following Daily Express’s Telegram channel.
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