Origin, purpose, organisation and management of Islamic Development Bank

The Islamic Development Bank (IDB) was born out of actions made at the first and second Conferences of Finance Ministers at Jeddah in 1973 and 1974, respectively. Even earlier, the Organization of the Islamic Conference, which now has 45 members, had fostered feelings of economic cooperation among Muslim states. The IDB began operations on October 20, 1975. It aims to promote social and economic advancement in the Islamic world. Boards of governors and executive directors and management administer the organization. The IDB began operations with an authorized capital of 2 billion Islamic Dinars and subscribed capital of 750 million Islamic Dinars (each Islamic Dinar is equivalent to one IMF Special Drawing Right). Among the financing practices IDB uses are interest-free loans, equity participation, profit sharing, and participation. Modes of finance were introduced at different stages in the bank's history. The bank gives technical assistance as grants or loans.