IsDBAnnual Report
2024

Geopolitical tensions and conflicts are placing immense pressure on member countries of the Islamic Development Bank (IsDB), exacerbating existing development challenges, such as food security, poverty reduction, and climate change mitigation. This is particularly concerning given that 43.9% of the Bank’s members are classified as least developed, with 18 being fragile and conflict-affected states, while 31 are heavily reliant on commodities, making them vulnerable to economic shocks and instability.

In response to these pressing challenges, IsDB has realigned its existing ten-year strategy (2015-2025) to better address the evolving needs of its member countries, emphasizing three key areas: enhancing recovery efforts, building resilience, and promoting green growth. As the current strategy approaches its end in 2025, IsDB is in the process of developing a new ten-year strategy that will reflect the enablers outlined in the “In Riyadh at Fifty Declaration”, which was introduced in May 2024 to commemorate the Bank’s golden jubilee.

These enablers aim to strengthen governance, increase concessional financing to meet the growing financial demands of member countries, expand grant opportunities through partnerships, bolster the Group’s role in the Islamic financial sector, and enhance South-South cooperation.

In 2024, the IsDB Group made considerable progress, with cumulative net approvals reaching an impressive US$194.8 billion, a notable increase from US$150.0 billion in 2020. Annual net approvals for 2024 rose to US$13.2 billion from US$11.7 billion in 2023. Contributions from the Group’s various entities are US$7.3 billion from the International Islamic Trade Finance Corporation, US$5.1 billion from IsDB-OCR, US$663 million from the Islamic Corporation for the Development of the Private Sector, US$46.6 million from the Islamic Solidarity Fund for Development, and US$12.9 billion worth of business insured by the Islamic Corporation for the Insurance of Investment and Export Credit.

These approvals have significantly benefitted not only member countries but also Muslim communities in non-member countries, effectively addressing critical challenges in human development, strengthening resilience, and promoting long-term sustainability. Moreover, IsDB has made continuous improvements in its institutional effectiveness, focusing on areas like Shariah governance, risk management, human resources, and procurement practices, ensuring that it remains responsive to the needs of its stakeholders.

Financially, the IsDB’s performance in 2024 showed strong growth, with a net income of ID388.1 million (22.5% increase from 2023), driven by robust performance across all the Bank’s core areas and favorable market conditions, despite the challenges posed by the increased impairment provisions related to fragile and conflict-affected countries. The Bank’s strong balance sheet, diversified income streams, and focus on risk management are expected to support sustained growth in 2025.

IsDB’s remarkable achievements have been made possible through continuous shareholder support, including multiple equity injections via general capital increases and special capital increases (SCIs). The most recent SCI for the Republic of Indonesia was put into effect in 2024. Following this, all member countries were invited to increase their shareholdings to pre-SCI levels. This initiative is expected to result in significant additional capital inflows for IsDB, enhancing its financial position and enabling greater support for developmental projects and programs across its member countries.

Global rating agencies have positively recognized this strong shareholder support, citing it as a key factor underpinning IsDB’s top-tier AAA rating, which has been reaffirmed for over two decades.

In 2024, IsDB demonstrated resilience and commitment by providing essential financial assistance to its member countries amid increased challenges and ongoing humanitarian crises. Net approvals reached US$13.2 billion, marking a 12.3% increase from the previous year. This growth reflects the Bank’s ongoing efforts to support member countries in addressing a variety of pressing issues, including food security and resilience building in the wake of conflicts in Eastern Europe, Africa, and the Middle East. Additionally, the Bank leveraged resources from its partners and reinvigorated its governance to ensure the impactful delivery of development financing. Highlights from 2024 approvals include: