Dakar
20 March 2008
The Saudi-based Islamic Development Bank is trying to help the most impoverished member countries of the Organization of the Islamic Conference, which held a summit last week in Senegal. Most of the poorer countries of the group are in Africa. Uma Ramiah reports from Dakar initiation and fundraising for the bank's Islamic Solidarity Fund for Development remain challenging.
During the OIC Summit, both Senegalese President Abdoulaye Wade and his foreign minister pushed for action by the OIC on the Islamic Solidarity Fund.
Speaking to media, both said they saw this fund as a chance for member countries to reach out and help those they called their Muslim brothers and sisters, especially in Africa. While donating to the fund is not a requirement, Ali says members states are expected to give what they can.
Ali expects to start projects soon. The new fund, he says, will help sub-Saharan countries reach the U.N. Millennium Development Goals by 2015.
"We must start immediately," said Ali. "The board met a few weeks ago to approve the first two programs, one for microfinancing and one for vocational training. Each will be in the size of $500 million. The fund will contribute $100 million, and we will mobilize the rest from member countries. We are identifying now actual projects especially in microfinancing and vocational training, because of the high percentage of unemployment of the youth in our member countries, especially for girls. So this is our major concern now for this fund."
The Islamic Development Bank also invests in infrastructure and development projects throughout the Muslim world. Loans given to member countries, in conformity with Islamic principles, are interest-free.
The bank has a total authorized capital of more than $45 billion. Its largest contributors and shareholders are Saudi Arabia, Kuwait, Libya, UAE, Turkey, Egypt and Iran.
Headquartered in Jeddah, the Islamic Development Bank celebrated its 34th birthday this year. Many consider it the "World Bank" of the Muslim populace. It holds observer status to the United Nations General Assembly and some of its membership make up the wealthiest countries in the world. But of its 56 members, almost half are impoverished sub-Saharan African countries.