• The Global Transparency Resource
• Importance of Transparency
• IFI's Introduced
  • AfDB - African Development Bank
  • ADB - Asian Development Bank
  • BIS - Bank for International Settlements
  • BSTDB - Black Sea Trade and Development Bank
  • CDB - Caribbean Development Bank
  • CEB - Council of Europe Development Bank
  • EBRD - European Bank for Reconstruction and Development
  • ECB - European Central Bank
  • EIB - European Investment Bank
  • IADB - Inter-American Development Bank
  • IFC - International Finance Corporation
  • IMF - International Monetary Fund
  • IsDB - Islamic Development Bank
  • OECD - Organisation for Economic Co-operation and Development
  • WB - World Bank
  • WTO - World Trade Organisation

IsDB Islamic Development Bank (Jeddah, Saudi Arabia)

The Islamic Development Bank is an international financial institution that was created to address the special development needs of the Muslim world. In large part these needs are the same as they would be for any other developing nation. However there are some issues with the laws about lending money that make it hard for them to do business with other development banks. Other than that the bank works pretty much the same as any other development bank.

The purpose of the Islamic Development bank is to provide funding for development projects in the Muslim world. The main way that this is done is through loans or by taking an equity position in the projects that they are funding. The goal is to promote both the social and the economic development of the Muslim world. Most of the loans are granted to the governments of the member states however they will sometimes grant loans to countries that are not members of the bank as well as to private corporations in certain situations.

One of the reasons for the creation of the Islamic Development Bank is that banking the way that it is done in the Western World does not comply with the laws of the Muslim countries. In particular when it comes to laws about lending with interest. To get around this is has been necessary to operate banks differently. Unfortunately most of the world's other development banks do not operate in this way which is a problem for a lot of countries. This has made the Islamic Development Bank particularly important in certain parts of the world since it is often the only source of funding that is available.

One of the goals of the Islamic development bank is to promote closer trading relationships in the Muslim world. It has become very obvious that the global economy requires that countries integrate their economies to a level that they have not done in the past. The Muslim world has lagged behind somewhat in this respect so there is a serious need for closer relations. Again this is becoming increasingly important because it can be difficult for Muslim countries to trade with Western countries because of the differences in the way that they do business.

While the Islamic Development Bank can play an important role in the development of the Muslim world's economy it is not going to be able to it all by itself. It is going to be necessary to find investors willing to put their money into these countries. This is something that the Islamic Development Bank has put more and more effort into in recent years. Promoting investment can be a challenge again because of the differences in the way that business is done in the Muslim world. Therefore most of the effort has been on finding investors from Muslim countries.