RIYADH: Innovation has and will continue to become the mantra for the Islamic Development Bank (IsDB) in the next 50 years as it spearheads the development of 57 of its member countries.

For the past five decades, the bank, of which Malaysia is one of the founding members, has financed development projects with a total value exceeding US$182 billion in various fields ranging from basic infrastructure and agriculture, to various strategic sectors such as health, education, energy, trade Islamic finance.

In his press conference with the local and international media after the recently concluded four-day IsDB annual meeting here, president Dr Muhammad Al-Jasser said: "Our interventions have improved the lives of millions of people, especially the most vulnerable groups."

Moving ahead, Muhammad Al-Jasser said the bank would continue to work together in a spirit of close cooperation to spread awareness about the significant development impact that its work has on the lives of people in member countries.

The IsDB held its 2024 Annual Meetings and Golden Jubilee in Riyadh from April 27-30, under the Royal Patronage of the Custodian of Two Holy Mosques, King Salman Bin Abdulaziz Al-Saud.

Themed "Cherishing our Past, Charting our Future: Originality, Solidarity and Prosperity", this year's annual meeting also marks IsDB's 50 years of fostering socio-economic development in its member countries.

This year's annual meeting received more than 3,750 participants, including representatives of 55 international and regional partner organisations, and 23 heads of leading institutions.

One of the main side events was "Private Sector Forum" which witnessed the presence of a large group of experts, specialists, officials and a number of business leaders, with more than 1,500 participants representing more than 60 countries.

Anwar: IsDB plays pivotal role in addressing poverty-stricken Muslim countries

Prime Minister Datuk Seri Anwar Ibrahim in his remarks at the IsDB Golden Jubilee celebration recently expressed confidence in the bank to continuously forge ahead in playing a pivotal role in addressing the issues of injustice, inequality and marginalisation, particularly among Muslims.

"The Muslims still happen to be the largest in terms of numbers of poverty-stricken areas of neglect.

"I think, other than the efforts of many of our governments and international bodies, the IsDB has a pivotal role to deal with these issues. Even when we see the light and hope for an amicable resolution to the conflict in Gaza after undergoing atrocities by the Israeli regime," he said.

Commenting on Anwar's statement, Treasury secretary general Datuk Johan Mahmood Merican said his statement was on the right occasion or agenda, considering the function of IsDB which is to help finance projects and programmes in member countries, especially less developed countries.

"Considering the Islamic country that has experienced the conflict, of course, the need is great for the refinancing of the country... the construction of hospitals, schools and so on consumes a large amount of allocation.

"At the same time, other member countries have already started thinking about how they can help finance the cost.

"For the next 50 years for IsDB, as the prime minister said, we need to ensure that notwithstanding the success of the 50 years in the past, we cannot rest on our laurel, we need to seize the moment to improve and this is where the topic of innovation in Islamic finance to meet the current challenges of the countries.

  Kuala Lumpur Centre of Excellence

Johan said Malaysia aims to develop new Islamic finance tools, therefore, the recently concluded meeting functioned as a platform for Malaysia to get some input.

"Among the discussions in Riyadh are how we try and also IsDB's contribution to make the forum a success, in terms of expertise and commitment to do joint ventures with Malaysia, especially in developing new Islamic financial approaches or products.

"It is hoped that this new approach can be pioneered in Malaysia and, if successful, it can also be practised in other countries," he said.

Johan said the government will focus on the Kuala Lumpur Centre of Excellence (KLCOE) so that both IsDB and Malaysia can work together to develop new Islamic financial products.

In case you missed it

At this year's meeting, the Securities Commission Malaysia has signed a memorandum of understanding  with the IsDB to pave the way for greater cooperation in the Islamic capital market.

Besides this, Halal Development Corporation Bhd has jointly hosted the Halal Economy Leadership Forum (HELF) 2024, focusing on innovation, sustainability and market expansion within the halal economy.

The programme was held in conjunction with the IsDB's Private Sector Forum 2024.

There will be several forums, seminars and meetings including the Governors Roundtable Meeting, the 18th IsDB Global Forum on Islamic Finance, IsDB Group 2024 Private Sector Forum, the Role of SMEs in Saudi Vision 2030, Charting a Course for Augmenting SDGs Financing and Leveraging Islamic Finance for Developing Sustainable and Resilient Infrastructure.

IsDB concluded its four-day meeting on Tuesday here with the signing of 85 financing agreements between the bank and 38 member countries and 22 international financial institutions worth more than US$8 billion (US$1=RM4.77).

Also, there were global development partners including the Abu Dhabi Fund for Development, the Bill and Melinda Gates Foundation and Partners which announced an additional US$219 million in donation for a total of 37 projects in 22 IsDB member countries through the Lives and Livelihoods Fund 2.0.

"Since the establishment of the bank 50 years ago, the volume of lending and financing withdrawals by member states has doubled, financing projects worth US$182 billion in all fields.

"We affirm that our cooperation will not end and we will continue to work together in the spirit of close cooperation to spread awareness about the significant development impact that our work has on the lives of people in our member countries and the communities benefiting from our projects in various parts of the world,"  Muhammad Al-Jasser said during his wrap-up session with the media. - Bernama

https://www.nst.com.my/business/economy/2024/05/1045288/innovation-key-mantra-isdb-next-50-years