31st Annual Report 1426H (2005-2006)


The 31st Annual Report highlights new policy initiatives launched by the Bank and presents an annual review of the operational activities and financial performance during 1426H (2005-2006). Major developments in the world economy and recent economic performance of member countries provide the setting for the IDB Group to achieve its strategic objectives; namely, poverty alleviation, promotion of economic cooperation and Islamic finance.

The Annual Report, 1426H consists of six chapters covering these strategic objectives and begins
by examining economic performance and major developments affecting member countries. It then turns to presenting role of IDB Group in fostering economic development, forging intra-trade and economic cooperation, enhancing the role of Islamic finance, investing in human capital, achieving institutionaleffectiveness, and financial results.

 

Table of Contents

Contents
List of Boxes
List of Tables
List of Charts
List of Appendices
List of Abbreviations
Table 0.1: Summary Record of the IDB Group for the Period 1396H-1426H(1 January 1976 - 30 January 2006)
Table 0.2: IDB Group Development Assistance 1396H-1426H (1 January 1976H - 30 January 2006)
1426H IN REVIEW: BOARD OF EXECUTIVE DIRECTORS’ REPORT

CHAPTER 1: ECONOMIC PERFORMANCE AND MAJOR DEVELOPMENT ISSUES AFFECTING MEMBER COUNTRIES
I. MACROECONOMIC PERFORMANCE
1. Overview of the World Economy
2. Economic Performance of IDB Member Countries
21 Real GDP Growth Rates
2.2 Inflation and Monetary Expansion
2.3 Saving and Investment Rates
2.4 Public Finance
2.5 Trade and Current Account Balances
2.6 External Debt
3. Short-term Prospects and Challenges


II. INTRA-TRADE PERFORMANCE
1. Structure and Direction of Trade of Member Countries
2. Intra-trade Among Member Countries
3. Intra-Trade Among Member Countries of Major Regional Economic Organizations


III. INTRA-INVESTMENT PERFORMANCE
1. FDI Performance and Potentials in Member Countries
2. Legal Framework for Investment Flows in Member Countries


IV. MAJOR ISSUES AND DEVELOPMENTS AFFECTING ECONOMIC PROSPECTS OF MEMBER COUNTRIES
1. Current Trends in International Capital Flows to Developing Countries
2. Outcome of the WTO Ministerial Conference in Hong Kong
3. Update on Progress in Implementing MDGs, and Poverty-reducing Growth Strategies
4. Implications of the New Multilateral Debt Relief Initiative (MDRI)
5. Improving the Investment Climate for Growth of Business Activities in Member Countries
6. Brain Drain (or Gain) in IDB Member Countries: Developmental Consequences

CHAPTER 2: FOSTERING ECONOMIC DEVELOPMENT
I. INTRODUCTION
II. REVIEW OF POLICIES, INITIATIVES AND OPERATIONS DURING 1426H


III. DEVELOPMENT ASSISTANCE BY SECTOR AND REGION
1. Distribution of Approved Operations by Sector
2. Approved Operations from Sukuk Resources
3. Regional Distribution of Projects and Technical Assistance Approvals in 1426H
IV. DEVELOPMENT ASSISTANCE TO THE LEAST DEVELOPED MEMBER COUNTRIES
1. Operations in LDMCs
2. Debt Relief


V. PROMOTING PRIVATE SECTOR DEVELOPMENT
1. Islamic Corporation for the Development of the Private Sector (ICD)
2. Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC)
3. Islamic Banks Portfolio for Investment and Development (IBP)
4. IDB Unit Investment Fund (UIF)


VI. FORGING PUBLIC-PRIVATE SYNERGY FOR DEVELOPMENT
1. IDB Infrastructure Fund
2. Awqaf Properties Investment Fund (APIF)


VII. LEVERAGING DEVELOPMENT PARTNERSHIPS
1. Co-financing with National Development Funds and Multilateral Development Banks
2. Co-financing with the Coordination Group


VIII. GLOBAL OUTREACH


IX. MANAGING FOR DEVELOPMENT EFFECTIVENESS
1. Operations Evaluation
2. Assessment of the Portfolio
3. The Role of Regional Offices and Field Representatives
IX. PROJECT PROFILES BY COUNTRY 1426H

CHAPTER 3: FORGING TRADE AND ECONOMIC COOPERATION
I. INTRODUCTION
II. RECENT INITIATIVES TO PROMOTE TRADE INTEGRATION
1. Preparation for the Establishment of the International Islamic Trade Finance Corporation
2. Review of Procedures
3. Assistance to Member Countries on WTO Related Matters
4. New Initiatives on Intra-Trade


III. MAIN FEATURES OF TRADE FINANCING
1. Aggregate Financing
2. Trade Financing Under Import Trade Financing Operations (ITFO)
3. Trade Financing Under Different Funds


IV. TRADE COOPERATION AND PROMOTION PROGRAMME (TCPP)
V. FUTURE ORIENTATION OF TRADE OPERATIONS


VI. IDB’S COOPERATION WITH THE OIC AND RELATED INSTITUTIONS
1. Cooperation at the OIC Level
2. Cooperation with the Standing Committee for Economic and Commercial
Cooperation (COMCEC)
3. Cooperation at the COMSTECH Level
4. Activities of the Task Forces Established in Priority Areas of Cooperation in the
Implementation of the 8th Islamic Summit Resolution


VII. BROADENING PARTNERSHIPS FOR DEVELOPMENT
1. New Initiatives in Procurement Services
2. Cooperation with Regional and International Organizations
3. Activities and New Initiatives to Promote Intra-Investment


VIII. SUPPORTING THEMATIC PROGRAMMES FOR COOPERATION AMONG
MEMBER COUNTRIES
1. International Centre for Biosaline Agriculture (ICBA)
2. Saudi Arabian Project for the Utilization of Hajj Sacrificial Meat

CHAPTER 4: ENHANCING THE ROLE OF ISLAMIC FINANCE AND INVESTING IN HUMAN CAPITAL
I. INTRODUCTION
II. OVERVIEW OF THE ISLAMIC FINANCIAL INDUSTRY AND THE ROLE OF
THE IDB GROUP
III. MOBILIZING RESOURCES AND UTILIZING ISLAMIC FINANCE
1. Mobilization of Sukuk Resources
2. Mobilization of Short-term Resources
3. Approved Operations by Mode of Finance


IV. PROMOTING GROWTH AND STABILITY OF THE ISLAMIC
FINANCIAL INDUSTRY
1. Cooperation with Islamic Banks
2. Cooperation with National Development Financial Institutions
3. Recent Developments in Strengthening Islamic Financial Infrastructure


V. KNOWLEDGE BUILDING THROUGH THE ISLAMIC RESEARCH AND
TRAINING INSTITUTE (IRTI)
1. Knowledge Creation Activities during 1426H
2. Knowledge Sharing and Policy Dialogue
3. Knowledge Instilling Activities - Training
4. Knowledge Dissemination Activities
5. Knowledge Promotion


VI. LEVERAGING SCIENCE AND TECHNOLOGY FOR THE DEVELOPMENT OF
HUMAN CAPITAL
1. Financing of the Education and Health Sectors
2. Science and Technology Operations
3. Scholarship Programmes
3.1 The IDB Scholarship Programme for Muslim Communities (SPMC)
3.2 Merit Scholarship Programme for High Technology (MSP)
3.3 M.Sc. Programme for Science and Technology (MPST)
3.4 Evaluation of Scholarship Programmes
4. Special Programmes for Science and Technology
4.1 IDB’s Young Researcher Support Programme
4.2. Annual Workshop Scheme
4.3 The IDB Prizes for Science and Technology
4.4 Centres of Excellence Cooperation Scheme
4.5 Other Cooperation Arrangements


VII. STRATEGISING FOR CHALLENGES OF KNOWLEDGE ECONOMY


VIII. CAPACITY BUILDING ASSISTANCE
1. Knowledge Sharing and Disseminating Skills
2. Supporting Civil Society

CHAPTER 5: ACHIEVING INSTITUTIONAL EFFECTIVENESS
I. MEMBERSHIP
II. ACTIVITIES OF THE BOARD OF GOVERNORS
1. The 30th Annual Meeting
2. Approvals Accorded by the Board of Governors
3. Award of the IDB Prizes
4. Election of the Chairman of the Board of Governors
5. Election of the President
6. Eleventh Term of the Board of Executive Directors


III. ACTIVITIES OF THE BOARD OF EXECUTIVE DIRECTORS (B.E.D.)
1. Standing Committees
2. Special Committees
3. Vice-President


IV. ORGANIZATIONAL DEVELOPMENT
1. IDB 1440H Vision Initiative
2. Enhancement of the Bank’s Business Processes
3. Records and Documents Management
4. Distance Learning and Video Conferencing


V. INFORMATION TECHNOLOGY


VI. STAFF DEVELOPMENT
1. Young Professionals Programme
2. Training


VII. LIBRARY
1. Library Website
2. New Library Management System
3. Learning Resources Centre

CHAPTER 6: FINANCIAL RESULTS
I. INTRODUCTION

II. OPERATIONS FINANCING
1. Approvals
2. Disbursements
3. Repayments
4. Overdues on Operations


III. FUNDING
1. Members Funds
2. Increase in OCR’s Share Capital
3. Overdues on Share Capital Subscription
4. Specialised Funds


IV. MANAGEMENT OF LIQUID FUNDS
V. RISK MANAGEMENT


VI. OPERATIONS RESULTS
1. Income
2. Expenses
3. Provisions
VII. WAQF FUND

Financial Statements

Ordinary Capital Resources, 30 Dhul Hijjah 1426H (30 January 2006)

Special Account Resources Waqf Fund, 30 Dhul Hijjah 1426H (30 January 2006)

Export Financing Scheme

Islamic Banks Portfolio for Investment and Development, 31 December 2005

Appendixes II - IV
- Appendix II.: Comparative Statement Showing Actual Expenditure during 1425H and 1426H and Approved Budget for 1427H
- Appendix III: Statement of Subscriptions to Capital Stock and Voting Power as on 30 Dhul Hijjah 1426H
- Appendix IV: Channels of Communication

Appendixes V.
List of Governors and Alternate Governors

Appendixes VI - VII
Appendix VI: Board of Executive Directors
Appendix VII: List of Senior Officials

Appendix VIII.
Statistical Annex - Key Economic Indicators
Table S.1 Selected Basic Indicators
Table S.2 Inflation
Table S.3 Money Supply
Table S.4 Current Account Balances
Table S.5 Overall Balance of Payments
Table S.6 Value of Merchandise Trade
Table S.7 Selected Indicators of Merchandise Trade
Table S.8 Indicators of External Debt for the year 2004
Table S.9 Gross International Reserves in Months of Imports
Table S.10 Net Resource Flows
Table S.11 Total ODA Commitments

Glossary

 

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