In a landmark move to accelerate sustainable development, the Islamic Development Bank (IsDB) has announced the launch of the IsDB Concessional Fund (ICF) at the Second AlUla Conference for Emerging Market Economies.
The bank stated the initiative represents a decisive evolution in its support architecture, designed to address the urgent needs of its 27 least developed member countries (LDMCs).
IsDB noted in a statement made available to THISDAY by its Communication Director, Ahmed Abu Ghazeleh, that building on five decades of impactful development work, the ICF introduces a streamlined model of enhanced financing fully aligned with the IsDB Group’s Ten-Year Strategic Framework (2026-2035).
The Fund, the bank stated, deploys Shariah-compliant instruments – including multiple concessional modes of financing and targeted grants for fragile contexts – to alleviate debt burdens while catalysing high-impact investments in human capital, food security, essential infrastructure, and climate resilience.
“Allocations from the ICF are determined by a rigorous, evidence-based framework prioritising countries with the most acute needs. This process evaluates key indicators, such as per capita income, debt sustainability, and exposure to fragility and external shocks, ensuring resources flow to LDMCs confronting the severest vulnerabilities,” it stated.
IsDB noted in the statement that the funding would support high-impact initiatives that align seamlessly with national development strategies.
According to Muhammad Al Jasser, chairman of the IsDB Group, during the launch in AlUla, “To ensure long-term sustainability, the ICF is backed by robust financial measures, including 20 percent allocation of the bank’s annual net income and periodic replenishments from member countries.
“The ICF is more than just a financing window; it is a renewed vow that the world’s most vulnerable will not face their struggles alone.”
Dr. Al Jasser affirmed the Fund aims to triple the IsDB’s concessional financing to approximately 15 percent of the Bank’s annual approvals, “fostering partnerships, sharing knowledge, and unlocking co-financing that multiplies the impact of every dollar invested.”
He also emphasised the ICF could not have been created without the significant financial and moral support of the Kingdom of Saudi Arabia and Kuwait.
“The IsDB Concessional Fund is a declaration of hope and a pledge to stand by our least developed member countries. We are here to invest in their potential and help them build a resilient, inclusive future.
“By focusing on LDMCs, the ICF not only fortifies their path toward resilience but also advances a collective vision of equitable progress where no member country is left behind,”
Meanwhile, on the sidelines of the second AlUla Conference for Emerging Market Economies, Al Jasser and H.E. Dr. Djamshid Kuchkarov, Deputy Prime Minister and Minister of Economy and Finance of the Republic of Uzbekistan, signed financing agreements to advance critical infrastructure and social development.
Ahead of the signing, the two leaders held bilateral talks to discuss the expansion of the IsDB–Uzbekistan partnership, focusing on deepening cooperation and accelerating high-impact initiatives aligned with Uzbekistan’s national development goals.
The first agreement represents a US$70 million phase of the IsDB’s total US$192 million commitment for the reconstruction of the 4R40 Dashtabad–Zaamin–Bakhmal–Galyaaral road project.
They agreed that: “This financing will support the reconstruction of 143 km of the 4R40 regional highway and the rehabilitation of 30 km of local and rural roads in the Jizzakh Region.
This initiative is designed to eliminate transit bottlenecks and improve safety for 200,000 residents. By modernising this vital feeder route for the M39 international corridor, the project will enhance access to markets and social services while unlocking the economic and tourism potential of the region.”
The second agreement formalises a US$94.06 million phase, which is part of the IsDB’s total US$160.25 million contribution, for the SmartEd Project.
The SmartEd project will build and equip 58 new educational institutions and add 2,431 classrooms to existing schools across the republic.
They said the project focuses on establishing an inclusive, competency-based learning system that will benefit 72,930 students annually and provide specialised training for over 36,115 teachers and administrative staff.
Al Jasser reaffirmed the bank’s commitment to supporting Uzbekistan’s development through results-focused cooperation.
Also, Dr. Djamshid Kuchkarov welcomed the continued partnership, highlighting the importance of sustained investment in connectivity and human capital to ensure long-term, resilient growth.
Sunday Okobi
Follow us on:
