IsDB Group Achieves Record US$15.8 Billion in Net Approvals in 2025 and Launches IsDB Concessional Fund

Baku, Azerbaijan, 18 June 2026 - The Islamic Development Bank (IsDB) Group announced its operational and financial results for 2025, highlighting strong growth and an expanded development footprint amid a challenging and uncertain global economic environment. The Group achieved a record US$15.8 billion in net approvals in 2025, marking a 20.2% increase from US$13.1 billion in 2024. Cumulative net approvals since inception now stand at US$209.6 billion.

Beyond these headline results, the IsDB Group continued to deliver strong operational performance and development impact across its financing operations.

In 2025, Group disbursements reached US$11.0 billion, equivalent to 69.7% of net approvals and 115% of the annual target, reflecting enhanced implementation and execution across the portfolio.

At the IsDB level, approvals under Ordinary Capital Resources (OCR) reached US$5.7 billion, exceeding the annual target by 3%. During the year, the IsDB successfully completed 77 projects and maintained strong portfolio performance through closer field supervision and proactive project management.

The Bank also continued to play a catalytic role in mobilizing development resources, attracting an additional US$1.03 in co-financing from development partners for every US$1 of IsDB financing.

Advancing Infrastructure, Food Security and Climate Action

The IsDB aligned its financing with the evolving priorities of its member countries. Transportation remained the largest area of investment, accounting for 46.2% of OCR approvals, reflecting continued demand for infrastructure and regional connectivity. Water, sanitation and urban services represented 20.0% of approvals, supporting urban resilience and improved access to essential services, while health financing increased to 16.1% of annual approvals.

The Bank also expanded its support for agriculture and food security under its Food Security Response Program, helping member countries strengthen resilience against food-related shocks. Climate action remained a key priority, with 42% of total financing dedicated to climate-related projects—well above the Bank’s target of 35%—through investments in renewable energy, sustainable infrastructure and climate resilience projects.

Regionally, the Asia, Latin America and Europe region received the largest share of IsDB Group approvals at 40.3%, followed by the Middle East and North Africa region at 33.1%. Sub-Saharan Africa accounted for 24.5% of approvals, reflecting the Group’s continued focus on supporting development priorities and building resilience across the region.

Strong Financial Performance

The IsDB maintained a solid financial position in 2025. OCR net income reached 638.4 million Islamic Dinars (approximately US$874 million), representing a 64% increase over 2024, largely driven by robust operational results and gains from equity divestments.

The Bank’s financial strength was further recognized through the reaffirmation of its AAA credit rating by the three major international rating agencies.

Shaping the Next Decade of Development

During the 2025 Annual Meetings in Algeria, the Board of Governors endorsed the IsDB Group’s 10-Year Strategic Framework (2026–2035), providing a roadmap for advancing sustainable, inclusive and resilient development across member countries over the coming decade.

Another major milestone in 2025 was the launch of the IsDB Concessional Fund (ICF), a dedicated financing mechanism designed to expand support for the Bank’s 27 least developed member countries. The Fund is backed by more than US$3.6 billion in repurposed available assets and will be further strengthened through the allocation of 20% of the Bank’s annual net income over the next five years.

The ICF will provide highly concessional and debt-sensitive financing to help vulnerable member countries address development challenges, build resilience and accelerate progress toward sustainable development.

 

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