BAKU, Azerbaijan, Feb.9. The Islamic
Development Bank (IsDB) has launched the IsDB Concessional Fund
(ICF), a new financing initiative aimed at supporting its 27 least
developed member countries, the bank said, Trend reports.
The fund was unveiled at the Second AlUla Conference for
Emerging Market Economies. It provides Shariah-compliant
concessional financing and targeted grants to alleviate debt
burdens and support investments in human capital, food security,
essential infrastructure, and climate resilience.
Allocations will be guided by a framework assessing per capita
income, debt sustainability, and exposure to fragility and external
shocks, prioritizing countries with the greatest development
challenges. Funding will be directed toward projects aligned with
national development plans.
The ICF is backed by 20% of the bank’s annual net income and
periodic replenishments from member countries, aiming to triple
IsDB’s concessional financing to roughly 15% of annual approvals,
the bank said.
Dr. Muhammad Al Jasser, IsDB Chairman, said the fund was
designed to strengthen partnerships, mobilize co-financing, and
increase the impact of every dollar invested. He acknowledged
support from Saudi Arabia and Kuwait in establishing the fund.
The ICF is part of the IsDB Group’s Ten-Year Strategic Framework
(2026-2035) and represents an effort to accelerate sustainable
development and resilience in the world’s most vulnerable
economies.
