Idb Annual Report 1428H Idb Board of Executive Directors
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CORPORATE PROFILE OF THE ISLAMIC DEVELOPMENT BANK Establishment Capital The Islamic Development Bank (IDB) is an international 3XUVXDQWWRWKHGHFLVLRQRIWKH%RDUGRI*RYHUQRUVLQ ¿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urpose +HDG2I¿FHDQG5HJLRQDO2I¿FHV 7KH SXUSRVH RI WKH ,'% LV WR IRVWHU HFRQRPLF +HDGTXDUWHUHGLQ-HGGDKWKH.LQJGRPRI6DXGL$UDELD GHYHORSPHQWDQGVRFLDOSURJUHVVRIPHPEHUFRXQWULHV WKH,'%KDVIRXUUHJLRQDORI¿FHVLQ5DEDW0RURFFR DQG 0XVOLP FRPPXQLWLHV LQ QRQPHPEHU FRXQWULHV .XDOD /XPSXU 0DOD\VLD $OPDW\ .D]DNKVWDQ DQG LQGLYLGXDOO\DVZHOODVMRLQWO\LQDFFRUGDQFHZLWKWKH 'DNDU6HQHJDO SULQFLSOHVRI6KDUL¶DK ,VODPLF/DZ Financial Year Functions 7KH,'%¶V¿QDQFLDO\HDULVWKHOXQDU+LMUD<HDU + 7KHPDLQIXQFWLRQRI,'%LVWRSURYLGHYDULRXVIRUPVRI GHYHORSPHQWDVVLVWDQFHIRUSRYHUW\DOOHYLDWLRQWKURXJK $FFRXQWLQJ8QLW KXPDQ GHYHORSPHQW IRUJRLQJ HFRQRPLF FRRSHUDWLRQ 7KH DFFRXQWLQJ XQLW RI WKH ,'% LV WKH ,VODPLF 'LQDU E\ SURPRWLQJ WUDGH DQG LQYHVWPHQW DPRQJ PHPEHU ,' ZKLFKLVHTXLYDOHQWWRRQH6'5±6SHFLDO'UDZLQJ FRXQWULHV DQG HQKDQFLQJ WKH UROH RI ,VODPLF ¿QDQFH 5LJKWRIWKH,QWHUQDWLRQDO0RQHWDU\)XQG LQ WKH VRFLDO DQG HFRQRPLF GHYHORSPHQW RI PHPEHU FRXQWULHV,WDOVRHVWDEOLVKHVVSHFLDOIXQGVIRUVSHFL¿F /DQJXDJH SXUSRVHV LQFOXGLQJ D IXQG IRU DVVLVWDQFH WR 0XVOLP FRPPXQLWLHVLQQRQPHPEHUFRXQWULHVLQDGGLWLRQWR 7KH RI¿FLDO ODQJXDJH RI WKH ,'% LV $UDELF EXW VHWWLQJXSWUXVWIXQGV (QJOLVK DQG )UHQFK DUH DGGLWLRQDOO\ XVHG DV ZRUNLQJ ODQJXDJHV ,Q DGGLWLRQ ,'% PRELOL]HV ¿QDQFLDO UHVRXUFHV XVLQJ 6KDUL¶DKFRPSOLDQW PRGHV DQG SURYLGHV WHFKQLFDO DVVLVWDQFHWRPHPEHUFRXQWULHVLQFOXGLQJSURYLVLRQRI WUDLQLQJIDFLOLWLHVIRUSHUVRQQHOHQJDJHGLQGHYHORSPHQW DFWLYLWLHVLQPHPEHUFRXQWULHV Membership 7KH SUHVHQW PHPEHUVKLS RI WKH ,'% VWDQGV DW FRXQWULHV VSUHDGLQJ LQWR GLIIHUHQW FRQWLQHQWV DQG UHJLRQV7KHEDVLFFRQGLWLRQIRULWVPHPEHUVKLSLVWKDW WKH SURVSHFWLYH FRXQWU\ VKRXOG EH D PHPEHU RI WKH 2UJDQL]DWLRQ RI WKH ,VODPLF &RQIHUHQFH 2,& SD\V WKH ¿UVW LQVWDOOPHQW RI LWV PLQLPXP VXEVFULSWLRQ WR WKH &DSLWDO 6WRFN RI ,'% DQG DFFHSWV DQ\ WHUPV DQG FRQGLWLRQVWKDWPD\EHGHFLGHGXSRQE\WKH%RDUGRI *RYHUQRUV ,'%+HDGTXDUWHUVLQ-HGGDKWKH.LQJGRPRI6DXGL$UDELD In the Name of Allah, 15 Rabi Thani 1429H the Beneficent, the Merciful 21 April 2008 H.E. The Chairman, Board of Governors of the Islamic Development Bank Dear Mr. Chairman, Assalamu-O-Alaikum Waramatullah Wabarakatuh In accordance with Articles 32(i), 32(iii) and 41(1) of the Articles of Agreement establishing the Islamic Development Bank and Section (11) of the By-laws, I have the honour to submit for the kind attention of the esteemed Board of Governors, on behalf of the Board of Executive Directors, the Annual Report on the operations and activities of the Bank in 1428H (2007-2008). The Annual Report also includes the audited financial statements of the Bank as well as those of the operations of the Waqf Fund, the Export Financing Scheme and the Islamic Banks Portfolio for Investment and Development, as prescribed in Section (13) of the By-laws. Please accept, Mr. Chairman, the assurances of my highest consideration. IDB ANNUAL REPORT 1428H IDB BOARD OF EXECUTIVE DIRECTORS H.E. Dr. Ahmad Mohamed Ali, Hon. Ibrahim Mohamed Al-Mofleh, President, IDB and Chairman representing the Kingdom of Saudi Arabia Board of Executive Directors Hon. Dr. Syed Hamid Pour Mohammadi, Hon. Jamal Nasser Rashid Lootah, representing the Islamic Republic of Iran representing the United Arab Emirates Hon. Aissa Abdellaoui, Hon. Somone Mibrathu, representing, Algeria, Benin, representing Bahrain, Iraq, Lebanon, Mozambique Syria, Palestine, Yemen Oman, Djibouti, Jordan, Maldives Hon. Mohammad Azzaroog Rajab, Hon. Yakoubou Mahaman Sani, representing Great Socialist People’s representing Burkina Faso, Cameroon, Libyan Arab Jamahiriyah Gambia, Mauritania, Senegal, Chad, Gabon, Mali, Niger, Togo 2 IDB ANNUAL REPORT 1428H IDB BOARD OF EXECUTIVE DIRECTORS Hon. Agus Muhammad, Hon. Rahimberdi J. Jepbarov, representing Brunei Darussalam, representing Albania, Azerbaijan, Indonesia, Malaysia, Suriname Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, Uzbekistan Hon. Zeinhom Zahran, Hon. Dr. Selim Cafer Karatas, representing the Arab Republic of Egypt representing the Republic of Turkey Hon. Faisal Abdul Aziz Al-Zamil, Hon. Md. Shaheedul Haque (Late), representing the State of Kuwait representing Afghanistan, Bangladesh, Pakistan Hon. Issufo Sanha, representing Comoros, Guinea-Bissau, Sudan, Sierra-Leone, Uganda, Guinea, Morocco, Somalia, Tunisia, Nigeria, Cote d’Ivoire IDB ANNUAL REPORT 1428H 3 CONTENTS Summary Record of IDB Group Activities for the Period 1396H-1428H ..................................................... 7 Commulative IDB Group Operations by Major Modes of Financing for the Period 1396H-1428H ............ 8 1428H IN REVIEW: ............................................................................................................ 9 CHAPTER 1 ECONOMIC PERFORMANCE AND MAJOR DEVELOPMENTAL ISSUES I. MACROECONOMIC PERFORMANCE ....................................................................................... 17 II. SOCIAL PERFORMANCE OF MEMBER COUNTRIES ............................................................. 23 III. MAJOR DEVELOPMENTAL ISSUES .......................................................................................... 26 CHAPTER 2 FOSTERING ECONOMIC DEVELOPMENT I. REVIEW OF DEVELOPMENT ASSISTANCE BY ECONOMIC SECTORS AND REGIONS .. 38 II. PROMOTING PRIVATE SECTOR DEVELOPMENT .................................................................. 42 III. LEVERAGING DEVELOPMENT PARTNERSHIPS .................................................................... 43 IV. MANAGING FOR DEVELOPMENT EFFECTIVENESS ............................................................ 44 V. PROJECT PROFILES BY COUNTRY 1428H ............................................................................... 45 CHAPTER 3 ALLEVIATING POVERTY AND PROMOTING HUMAN DEVELOPMENT I. THE CHALLENGES OF POVERTY ALLEVIATION .................................................................. 61 II. DEVELOPMENT ASSISTANCE TO LEAST DEVELOPED MEMBER COUNTRIES ............. 64 III. SUSTAINING DEVELOPMENT OF HUMAN CAPITAL ............................................................ 67 IV. CAPACITY BUILDING ASSISTANCE ......................................................................................... 71 CHAPTER 4 FORGING TRADE AND ECONOMIC COOPERATION I. GLOBAL TRADE AND INTRA-TRADE PERFORMANCE OF MEMBER COUNTRIES ....... 77 II. RECENT INITIATIVES TO PROMOTE TRADE INTEGRATION .............................................. 80 III. ASSESSMENT OF TRADE FINANCING OPERATIONS ........................................................... 80 IDB ANNUAL REPORT 1428H 5 IV. CAPACITY BUILDING FOR TRADE AND INVESTMENT ....................................................... 81 V. COOPERATION WITH THE OIC AND RELATED INSTITUTIONS ......................................... 84 VI. COOPERATION WITH DEVELOPMENT PARTNERS ............................................................... 89 CHAPTER 5 STRENGTHENING ISLAMIC FINANCE I. OVERVIEW OF DEVELOPMENTS IN ISLAMIC FINANCE ..................................................... 91 II. PROMOTING ISLAMIC FINANCE FOR DEVELOPMENT ....................................................... 92 III. KNOWLEDGE BUILDING IN ISLAMIC FINANCE ................................................................... 93 APPENDICES Appendix-1: Financial Statements .......................................................................................................... 99 Appendix-II: Comparative Statement Showing OCR Actual Expenditure for 1427H and 1428H and Approved Budget for 1429H (2008) ........................................................................... 190 Appendix-III: OCR Statement of Subscriptions to Capital Stock and Voting Power as on Jan. 9, 2008 .. 191 Appendix-IV: Governors and Alternate Governors ................................................................................... 193 Appendix-V: Board of Executive Directors ............................................................................................. 201 Appendix-VI: Management and Senior Officials ...................................................................................... 202 ----------------------------------------------- 6 IDB ANNUAL REPORT 1428H SUMMARY RECORD OF IDB GROUP Table 0.1 Summary Record of the IDB Group Activities for the Period 1396H-1428H (01 January 1976 - 09 January 2008) (values in million)1 1396H –1425H 1426H 1427H 1428H 1396H-1428H ITEM2 No. ID/$ No. ID/$ No. ID/$ No. ID/$ No. ID/$ PROJECT FINANCING3 605 2,614.0 48 227.2 40 280.8 39 239.2 732 3,361.2 Loan 3,422.1 335.0 407.0 356.1 4,520.2 Of which 121 182.2 14 26.6 6 12.3 1 6.7 142 227.8 LDMCs Loans 248.5 39.0 17.6 10.0 315.1 141 651.1 26 205.1 22 235.2 24 207.7 213 1,299.1 Equity 884.2 296.5 342.0 325.8 1,848.5 Of which 8 233.2 4 140.2 7 170.9 1 2.1 20 546.4 Infrastructure Fund 332.7 202.4 246.8 3.3 785.1 251 2,962.6 26 428.2 31 459.0 22 623.9 330 4,473.6 Leasing 4,057.7 616.0 679.2 959.6 6,312.5 193 1,695.5 15 115.7 15 121.1 8 222.5 231 2,154.8 Instalment