Relationship of the Islamic Development Bank Group with the Republic of Yemen

Dr Hajjar: We are committed to support the Yemeni people in meeting their aspirations. Our total financings for the country reached to $1 billion. 

During the virtual donors’ conference hosted by the Kingdom of Saudi Arabia, the IsDB announced its support in financing projects in Yemen amounting to US$ 100 million. Out of which US$ 33.6 million is to support the fight against COVID-19. The amounts were allocated to the health and agriculture sectors of which US$ 20 million were allocated for the Health sector and approved by the Bank on 16 June 2020 and will be implemented by the WHO. 

As part of the IsDB’s international collaboration to minimize the impact of COVID-19 on Education for our MCs, the Bank has been selected to serve as Grant Agent (GA) for the GPE COVID-19 Accelerated Grant allocated for Yemen amounting US$ 11.5 million.

Answering a question about the depth of the relationship between the IsDB and Yemen in the financings extended to boost the country's economy, H.E Dr Bandar Hajjar, Chairman of the IsDB Group stated that the IsDB has always supported Yemen to achieve stability and for socio-economic development. In this regard, he appreciated Saudi Arabia for hosting the donors’ conference held last month to support Yemen. He added that the main goal of Saudi Arabia, which holds about one quarter of the IsDB capital and generously supports its programmes and initiatives, is to foster socio-economic development in member countries, especially those facing special circumstances like Yemen and other least developed member countries.

With regard to supporting different sectors, he said that the IsDB programmes cover various sectors including - but not limited to- basic education, higher and technical education and vocational training. The IsDB also contributes to the development of the agriculture, fisheries, health, transport, communication, water, and energy sectors in addition to supporting social security networks, public administration, banks and other services. 

Dr Hajjar pointed out that the IsDB also contributed through the Islamic Solidarity Fund for Development (ISFD) to many development projects in the transport, Agriculture and social security networks. It also attempts to reduce the burden of the living conditions resulting from the current political situation in the country. In this regard, the IsDB endeavoured to provide relief and medicine by distributing US$ 1 million in food parcels in the governorates of Ma’rib, Shabwah and Azal region; US$ 350,000 in potable water in the outskirts of Hadhramaut and US$ 360,000 in relief medicine to thalassemia patients. The IsDB also contributed US$ 200,000 to the response to the latest floods. The IsDB is also supporting cancer patients in Yemen by providing them with medicine, equipment and medical supplies they need.

H.E Dr Hajjar added that the IsDB contributed through its financing arms, especially the Islamic Corporation for the Development of the Private Sector (ICD) and the International Islamic Trade Finance Corporation (ITFC), to several activities in the mining and industry sectors, financing trade lines to support imports and exports in addition to supporting the communication, air transport and banking sectors as well as private sector hospitals. The IsDB and its institutions’ total contribution to country is about $1 billion as follows:

  • IsDB Ordinary Capital Resources (OCR) contributions: US$ 425 million.
  • IsDB Technical Assistance financing contribution: US$ 23 million.
  • IsDB Special Assistance projects contribution: US$ 30 million. 
  • ICD contribution: US$ 131 million. 
  • ITFC (other funds) contribution: US$ 486 million.
  • The Investment Insurance and Export Credit operations of the Islamic Corporation for the Insurance of Investment & Export Credit (ICIEC): US$ 16.7 million

It is worth noting that the IsDB has started supporting development programmes in Yemen since its inception in 1975 and has continued its support till now.

Moreover, the IsDB has always been one of Yemen’s main supporters during all the events that the country faced. The IsDB participated to various stages of the reconstruction of education and health facilities affected by floods in Hadhramaut, Al Mahra, Maʼrib, Al Jawf, and more recently, in Aden, Taiz, Ma’rib as well as other governorates. The IsDB also contributed to the reconstruction of Sa'dah by contributing to numerous education, health and potable water projects. It also took part in the reconstruction of the education and health sectors in Abyan. 

Furthermore, the IsDB is a member of the Quartet comprising the World Bank, the European Union, the United Nations and Arab and regional financing institutions in charge of preparing the reconstruction programme.