IDB Group Operations at a Glance

Q2-2017 Update

The Open Data Initiative is intended to help transform the Islamic Development Bank Group (IDB Group) into a knowledge-based institution by providing quality assured data to support knowledge generation, dissemination, and transfer.It provides an opportunity for internal and external data users to access operational data, which covers IDB Group approvals since inception organized by Mode of Financing, Entity, Source of Funds, Country and Sectors.

The IDB Group Operational Data is released quarterly based on the Gregorian calendar; however, for local use the Operational Data is also presented in the Hijra year.

The Bank adopts its own classification of member countries which is currently comprised of four groups: Middle East and North Africa (MENA), Asia and Latin America (ALA), Europe and Central Asia (ECA) and Sub-Saharan Africa (SSA).

The Bank encourages the use and distribution of the data provided that clear attribution is given to the original source. The snapshot of IDB Group operations is given below.

Trends in IDB Group Net Approvals

The IDB Group Net Approvals have grown proportionally with increasing development needs of its Member Countries. The total IDB Group Net Approvals, since its inception, reached US$128.8 billion by the end of Q2-2017. In terms of decade performance, the Net Approvals increased significantly from US$5.2 billion in the first decade (1976-1985) to US$80.8 billion in the latest decade (2008-2017). This impressive performance was mainly due to the Bank’s strategic decision to scale up its operations to help member countries cope with the effect of the global financial turbulences.

Net Approvals grew by 71.5 percent from the first decade (1976-1985) to second decade (1986-1995) and also by 170.9 percent from the period (1986-1995) to (1996-2005). Over the latest decade (2006-2017), the Net Approvals recorded the highest growth rate of 273.0 percent. Similarly, in terms of absolute value, Net Approvals recorded the highest of US$ 90.4 billion during the same period.


Approvals by Region

Out of the total IDB Group financing (US$ 128.8 billion) since inception, US$ 49.1 billion went to MENA-18 region, followed by ALA-9 (US$ 37.2 billion); SSA-22 (US$ 21.3 billion) and ECA-8 (US$ 19.1 billion) (Figure 2). It may be noted that the majority of the Net Approvals for SSA-22 and ECA-8 were mainly in the Transport Sector, whereas, for MENA-18 and ALA-9, they were in the Energy Sector.

Country-wise, the top-5 beneficiaries of IDB Group financing are Bangladesh (15.1 percent), followed by Egypt (8.6 percent), Pakistan (8.5 percent), Turkey (8.5 percent) and Morocco (5.2 percent). The total financing for these five countries represent about 46 percent of total IDB group net approvals.

IDB Group Net Approvals by Sector

In terms of sectoral breakdown of the Group Net Approvals, Energy and Finance sectors accounted for the largest shares of US$ 41.5 billion and US$ 15.2 billion respectively, followed by Transportation sector at US$ 13.7 billion, and Agriculture US$ 11.2 billion.

This sectoral distribution shows that the IDB Group projects mainly focused on Infrastructure and Finance development in its Member Countries (Figure 3).

From the perspective of IDB Group modes of financing, the most frequently used are Istisna’a and Leasing for project financing, while Murabaha is the only mode used for trade financing.

IDB Group Net Approvals by Source of Financing:

The main sources of the IDB Group Net Approvals are IDB Ordinary Capital Resources (IDB-OCR), Islamic Corporation for the Development of the Private Sector (ICD) and International Islamic Trade Finance Corporation (ITFC). The IDB-OCR accounted for 43.4 percent of the cumulative Group Net Approvals, followed by ITFC (27.6 percent) and ICD (3.2 percent). The remaining 25.7 percent are coming from Unit Investment Fund (1.9%), Awqaf Property Investment Fund (0.4%) and Special Assistance Operations (0.6%) and closed funds (22.9).

IDB Group Projects for Non-Member Countries

To fulfill its Mission, the IDBG is fostering socioeconomic development of the Muslim Communities in Non-Member Countries mainly in Education and Health sectors. The total amount approved by the Bank up to the end of Q2-2017 stood at US$ 673.9 million for 1056 projects. Muslim Communities in 86 Non-Member Countries from six Continents benefitted from the Bank’s Special Assistance Programs and ordinary financing operations. Europe and Africa received the highest of US$ 226.5 million and US$ 210.2 million respectively of the Bank’s projects for Muslim Communities in Non-Member Countries. Asia region comes the third highest recording US$ 109.5 million, followed by North America (US$ 77.0 million), South America (US$ 35.2 million) and Australia (US$ 15.4 million).

ICIEC Operations

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is a member of the Islamic Development (IDB) Group. Its mandate is to facilitate and promote trade and investment among IDB Member Countries and the world through Shariah compliant risk mitigation tools.

Since inception ICIEC operations were growing exponentially. The ICIEC Now Approvals (Insurance Commitments) increased from US$ 2.63 million in 1996 to US$ 4,827.65 million in 2016, with mid-year 2017 record of US$1,227.6 million and Business Insured increased from US$ 0.15 million to US$ 5,171 million in the same period. That is, the average annual growth rate for New Approvals was over 110 percent and over 290 percent for the Business insured (Fig.6). This impressive growth started right after the 2008 financial crisis where many companies decided to mitigate the risk of their trade and investment.

The ICIEC operations are not limited to IDB Member Countries. Out of the total US$ 34,345.4 million of ICIEC New Approvals from inception to 2016, the IDB Member Country share was US$ 23,277.4 million, while US$ 11,068.0 million was for Non-Member Countries (Fig.7). Similarly, out of the total US$ 39,058.7 million of ICIEC Business Insured from inception to 2017, US$ 29,074.1 million goes to IDB Member Countries, while US$ 9,984.6 million goes to Non-Member Countries (Fig.8).

1) MENA-18 includes Algeria, Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Syria, Tunisia, UAE and Yemen.
2) ALA-9 includes Afghanistan, Bangladesh, Brunei, Guyana, Indonesia, Malaysia, Maldives, Pakistan and Suriname.
3) SSA-22 includes Benin, Burkina Faso, Cameroon, Chad, Comoros, Cote d’Ivoire, Djibouti, Gabon, Gambia, Guinea, Guinea Bissau, Mali, Mauritania, Mozambique, Niger, Nigeria, Senegal, Sierra Leone, Somalia, Sudan, Togo, and Uganda.
4) ECA-8 includes Albania, Azerbaijan, Kazakhstan, Kyrgyz Republic, Tajikistan, Turkey, Turkmenistan and Uzbekistan.