The Agric​​​ulture and Rural Development (ARD) sector is one of the key sectors that can truly help to achieve the broad objectives of economic progress and the 2030 Agenda on Sustainable Development. The sector is an engine for growth and source of livelihoods, particularly in the agricultural-based developing countries. Improvements in agricultural productivity can lift many poor households out of poverty and malnutrition. Evidence has shown the multiplier effect of investment in Agriculture on the economy, for instance, supply of raw materials can help to drive the manufacturing industries.

The sector presents a great opportunity for the development of the IsDB Member Countries (MCs).  It employs well over 233 million people, accounts for a significant proportion of the GDP, and is the main source of food and nutritional security.  The IsDB MCs have an estimated 28.8% of the wo​rld's total agricultural area, and 13.5%. Greater proportion of the irrigated and rainfed land remains unutilized. ​IsDB’s commitment to growing the agriculture sector of member countries remains strong. The ARD sector aim to promote sustainable, resilient and equitable agriculture and rural development by: (i) alleviating poverty and enhancing food security, (ii) promoting public–private partnerships, and (iii) creating rural employment opportunities. 

As of 2020, IsDB Group Portfolio stood at USD 17.2 Billion. IsDB will take a lead role in catalyzing and otherwise fostering sustainable, inclusive, integrated and equitable agriculture, rural development, and food security. In this context, it will promote sustainable, resilient and equitable agriculture and rural development that modernizes and enhances food security systems while increasing connectivity through innovative Islamic finance, as well as its human and institutional knowledge capacities.

The share of MCs in the Global Value Chains (GVCs) is generally low. IsDB is putting effort into developing GVCs and getting markets to work for the development of the sector. This will be achieved by forging closer partnerships with development organizations, the private sector, centers of knowledge, and the civil society organizations. This will help to increase the scale and value gained by MCs economies, their farming and agribusiness communities. 

The IsDB will forge closer partnerships with development organizations, the private sector, centers of knowledge, and the civil society organizations that play a critical role in the design, implementation and co-financing of development projects and programs. Through these strategic partnerships, it will help member countries bring on board science, technologies, and innovations that will strengthen the performance of the ARD sector. ​

This Agriculture and Rural Development Sector Policy aims to provide strategic direction for investment by the Islamic Development Bank (IsDB) in the agricultural and rural development of its Member Countries. The policy outlines a framework for IsDB Group support to Member Countries to improve food security through rural and agricultural development for rural economic growth and employment generation. The thesis of the policy is to promote the commercialization of smallholder agriculture through the development of agriculture value chains, with an emphasis on private-sector participation.