Islamic Development Bank (IDB) is an international financial institution in Jiddah, Saudi Arabia. It seeks to foster economic development and social progress in countries that follow the Islamic religion. People who follow the teachings of Islam are called Muslims. IDB participation is open to all members of the Organization of Islamic Cooperation, a group devoted to Muslim unity and cooperation. The IDB has dozens of member countries throughout Africa, Asia, and Europe.
The IDB conducts business in agreement with the principles of the Sharī`a, also spelled Sharī`ah, the traditional Islamic law. For example, the Sharī`a forbids the charging of interest, so the IDB makes many interest-free loans, charging only a service fee.
The IDB assists its members by investing in economic projects, financing development programs, providing technical assistance, and encouraging cooperation and trade among members. Additionally, the IDB has several funds and programs devoted to special projects. For example, the bank’s Special Assistance Program provides disaster relief and funding for education and health concerns. The Islamic Research and Training Institute conducts research, publishes reports, provides training, and holds conferences on economic issues. The IDB Infrastructure Fund seeks to improve access to energy, resources, technology, and transportation. The bank also aids Muslim communities in nonmember countries. The IDB began operations in 1975.
See also Islam.
