The Urban Development sector received 7.7 billion USD in net approvals from inception to September 2021. Internal estimates show that these investments were made in the following areas: water supply (38%), followed by sanitation and sewerage (34%), urban infrastructure (21%) solid waste management (2%), housing (1 %), and others (4 %).

For active projects, the three biggest urban development projects are water projects in West Africa (Senegal US$ 164 million, Mali US$ 31 million & Burkina Faso US$ 18 million). Another active landmark project is the Western Tehran Sanitation Project in Iran (US$ 211 million). Finally, Cocody Bay Environmental Improvement and Urban Development Project in Cote d'Ivoire (Euro 234 million) approved in 2017 is the biggest urban development project financed by the Bank, and it highlights a partnership and south-south cooperation between Cote d'Ivoire and Morocco.

A full-fledged Urban Sector Policy (USP)  was approved by the BED in September 2020. The USP is designed to fulfill three key functions: (i) provide a framework for developing programs and projects with MCs that promote sustainable and inclusive urban development; (ii) offer a coordinating framework that harmonizes at the policy level relevant IsDB sector and thematic policies and builds synergies with other sector operational engagements; and (iii) align urban policy with the Bank's corporate policies.

The Urban Sector Operational Strategy (USOS, 2021-2025) was approved by the IsDB President in April 2021. The USOS serves as a guiding framework for implementation of the USP over the coming five years and is designed to align the actions and practices of the Urban Sector (staff under the CPO and COO directorates) with global and corporate urban development policy goals specifically the SDG11, SDG6 and SDG13. It is also designed around two main implementation modalities namely: (i) the Integrated Urban Operating Model (IUOM) and (ii) the Priority Interventions by Regional Groups, Country Attributes and Income Classification (PIRG).

In 1950, the world's urban population stood at about 30 percent. Today, it has reached 55 percent and demographic projections suggest it could reach 68 percent by 2050. From a global perspective, Sub-Saharan Africa, South Asia, and parts of the Middle East, where IsDB MCs are predominantly concentrated, are expected to be the regions that experience the most dynamic and rapid urban growth in the decades ahead.

Considering that most industrial and service activities take place in cities, urban areas are estimated on average to account for 80 percent of a country's economy output.

While urbanization and economic growth are expected to move in tandem, many developing countries, particularly in Sub-Saharan Africa, face a migration “push” from rural areas (due to poor living conditions) rather than an economic “pull” from cities, many of which have failed to generate the jobs and economic opportunities for those migrants.

Once exclusive to the developed world, most megacities today are in developing countries, and many still within IsDB MCs.

In many SSA countries, as many as 80 percent of urban inhabitants have no access to formal housing. In 15 IsDB MCs, the urban population living in slums exceeds 50 percent.

About 286 million people in IsDB MCs go without improved access to water supply and 666 million lack access to improved sanitation. While access has improved in recent years, substantial gaps remain between high and low income MCs.

Have resulted in high congestion costs in developing country cities. As motorization rates rise with urban growth and prosperity, congestion costs too are emerging across most IsDB MCs. A shift in focus to urban mobility, alternative non-motorized transportation options, better public transport, and more effective urban planning can help reduce congestion, prevent avoidable urban road injuries or deaths, and improve air quality impacted by vehicle emissions.

Cities consume an estimated 75 percent of all consumed natural resources, account for as much as 80 percent of Green House Gas (GHG) emissions, and 50 percent of post consumer waste.

In a business as usual scenario, sea level rise could submerge land currently home to 164 million in 44 IsDB MCs -- mostly urban. At 1.5 degree C warming IsDB countries account for 20 percent of the global population living in threatened lands, and 26 percent at 4 degree C warming.

Low-income communities and densely populated settlements in the cities are particularly the high-risk groups to this pandemic.