Data & Group Results
IsDB Group Operations at Glance
Access to timely, relevant and accurate quality data is essential in assessing socio economic development and the impact of interventions in IDB Group Member Countries. In this context, the Economic Research and Institutional Learning Department (ERIL) initiated the Open Data Initiative to make quality data easily accessible to all who desire it.
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; and is also available in the Hijra year for internal purposes.
Member countries are clustered into three operational groups: Country Relations and Services Middle East and Europe (CRS ME) , Country Relations and Services Asia (CRS Asia) , Country Relations and Services Africa and Latin America (CRS ALA) based on internal classification. The snapshot of the IDB Group operations is as follows.
1. IDB Group Net Approvals
In response to the increasing development needs of its Member Countries, approvals have been on the increase. Overall, since inception, total IDB Group Net Approvals, reached US$1331.3billion by the end of Q2-2018. In terms of decade performance, Net Approvals increased significantly from US$4.8 billion in the first decade (1976-1985) to US$84.1billion in the latest decade (2008-Q2-2018). 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.
2. Approvals by Region
At the regional level, out of the total financing of US$131.3 billion since inception, US$76.8 billion went to CRS ME region, followed by CRS Asia (US$32.5 billion) and CRS ALA (US$19.7 billion) (Figure 2). Reflecting the diverse developing priorities in the regions, it is not surprising that the majority of the Net Approvals for CRS ALA were in the Transport Sector, whereas, for CRS ME and CRS Asia, they were in the Energy Sector.
Country-wise, the top-5 beneficiaries of IDB Group financing are Bangladesh (15.2 percent), followed by Pakistan (8.9 percent), Egypt (8.7 percent), Turkey (8.5 percent) and Morocco (5.1 percent). The total financing for these five countries represent about 46.5 percent of total IDB group net approvals. Therefore, IDBG may need to monitor the socio economic changes in these five major beneficiary countries. It is clear that any economic change in these countries will have a significant effect on IDBG operations due to the high project concentration.
3. IDB Group Net Approvals by Sector
In terms of sectoral breakdown of the Group Net Approvals, Energy, Others and Finance sectors accounted for the largest shares of US$44.0 billion, US$25.6 and US$15.6 billion respectively, followed by Transportation sector at US$12.2 billion, and Agriculture US$11.3 billion.
This sectoral distribution shows that the IDB Group projects mainly focused on Infrastructure and Finance sectors 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.
4. 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 40.5 percent of the cumulative Group Net Approvals, followed by ITFC (30.6 percent) and ICD (3.9 percent). The remaining 25.0 percent are coming from ICD managed funds (1.9%), Special Assistance Operations (0.6%) and closed funds (22.5%).
5. IDB Group Projects for Non-Member Countries
The mission and reach of the IDB Group is beyond that of it member countries. As part of its mandate, the IDBG also fosters socioeconomic development of Muslim Communities in Non-Member Countries. This has largely been in the Education and Health sectors. The total amount approved by the Bank for the Muslim Communities in Non-Member Countries up to the end of Q2-2018 stood at US$677.3 million for 1073 projects.
Muslim Communities in 86 Non-Member Countries from five Continents benefitted from the Bank Group’s Special Assistance Programs and ordinary financing operations. Africa (US$229.2 million) and Europe (US$205.4 million) were the largest beneficiaries of financing in non-member countries followed by the Americas (US$114.1 million), Asia (US$109.5 million), and Oceania (US$19.2 million).
6. 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.
ICIEC New Insurance Approvals increased from US$2.63 million in 1996 to US$3,574.3 million in 2017, and Business Insured increased from US$0.15 million to US$7,527.2 million in the same period. Since inception ICIEC operations have grown, with rapid growth since the early 2000’s. The New Insurance Approvals growth from 2007 onwards averaged at 14.7 percent, while the annual growth of Business Insured averaged at 27.6 percent in the same period. However, both Business Insured and New Insurance Approvals slightly declined in 2017 due to low commodity prices in the Member Countries that affected the global trade. The overall impressive growth of ICIEC operations started right after the 2008 financial crisis where many companies decided to mitigate the risk of their trade and investment.
ICIEC operations are not limited to IDB Member Countries with approximately one third (US$13,304.4 million) of New Insurance Approvals out of US$39,488.6 million from inception went to Non-Member Countries (Fig.7). Similarly, approximately 26% (US$12,334.3 million) out of the US$48,200.9 million of total Business Insured went to Non-Member Countries (Fig.8).