Islamic Development Bank IDB. Istisna'a. Shari'ah (Islamic Law)

Course summary (Islamic Development Bank):
IDB Unit of Account (Islamic Dinar). Modes of Financing. Islamic corporation for Insurance of Investments and Export Credits. BADEA. ICIEC

The Islamic Development Bank is an international financial institution established in pursuance of the Declaration of Intent issued by the Conference of Finance Ministers of Muslim countries held in Jeddah in Dhul Q'adah 1393H, corresponding to December 1973. The Inaugural Meeting of the Board of Governors took place in Rajab 1395H, corresponding to July 1975, and the Bank was formally opened on 15 Shawwal 1395H corresponding to 20 October 1975. The present membership of the Bank consists of 56 countries. The official language of the Bank is Arabic.

The purpose of the Islamic Development Bank is to foster the economic development and social progress of member countries and Muslim communities individually as well as jointly in accordance with the principles of Shari'ah i.e., Islamic Law.

The Islamic Development Bank operates according to the Islamic Shari'ah principles. Shari'ah is the set of rules derived from the Holy Quran, the authentic traditions (Sunnah) of the Prophet (peace be upon him) and the scholarly opinions (Ijtehad) which are based on the Holy Quran and the Sunnah.

Example of the course Islamic Development Bank:

Objectives:
- Promotion of Islamic financial industry and institutions
- Poverty alleviation
- Promotion of cooperation among member countries

Priority Areas:
To realize these objectives, the Islamic Development Bank IDB Group will focus on the following six priority areas.
- Human development
- Agricultural development and food security
- Infrastructure development
- Intra-trade among member countries
- Private sector development
- Research and development (R & D) in Islamic economics, banking and finance

Headquartered in Jeddah (Saudi Arabia), the IDB Group also has three regional offices in member countries: Almaty (Kazakhstan), Kuala Lumpur (Malaysia), and Rabat (Morocco). It is also in the process of opening its fourth regional office in Dakar, Senegal. The Bank has field representatives in thirteen member countries namely: Bangladesh, Guinea, Guinea Bissau, Indonesia, Iran, Libya, Mauritania, Nigeria, Pakistan, Senegal, Sierra Leone, Sudan, and Uzbekistan.

Islamic Development Bank Member countries: United Arab Emirates, Kyrgyz, Lebanon, Libya, Mauritania, Morocco, Mozambique, Palestine, Qatar, Saudi Arabia, Senegal, Sierra Leone, Somalia, Sudan, Suriname, Syria, Tajikistan, Togo, Tunisia, Uganda, Niger, Pakistan, Afghanistan, Chad, Albania, Benin, Iran, Jordan, Algeria, Burkina Faso, Cameroon, Gambia, Uzbekistan, Indonesia, Malaysia, Iraq, Kazakhstan, Kuwait, Maldives, Mali, Nigeria, Oman, Turkmenistan, Azerbaijan, Bahrain, Bangladesh, Brunei Darussalam, Comoros, Ivory Coast, Djibouti, Gabon, Guinea, Guinea Bissau, Egypt, Yemen, Turkey,

IDB Unit of Account (Islamic Dinar) .
A unit of account of Islamic Development Bank which is equivalent to one Special Drawing Right (SDR) of the International Monetary Fund. Composition of the currencies in SDR basket denominating in Islamic Dinar are USD 44%, EUR 34%, GBP 11% and JPY 11%.

Islamic Development Bank Group offers a wide spectrum of financing and development schemes. i.e. project financing, trade financing, insurance in accordance with principles of Shari’a (Islamic Law) financing modes.

The Istisna'a finance mode allows providing financing for manufacturing/supplying/sale of identified goods which could be equipment as well as civil works. Practically, it involves a contract whereby IDB undertakes to have a specific equipment or construction produced according to certain specifications requested by the beneficiary, and to sell it to the beneficiary at a determined price to be paid over an agreed period. The main objective of this mode is to promote manufacturing capabilities in the Islamic Development Bank member countries.

Istisna’a is a contract whereby a party undertakes to produce a specific thing which is possible to be made according to certain agreed-upon specifications at a determined price and for a fixed date of delivery. This undertaking of production includes any process of manufacturing, construction, assembling or packaging.

Islamic corporation for Insurance of Investments and Export Credits (ICIEC). ICIEC was established in 1415H (1994) with the objective to enlarge the scope of trade transactions and investment flows among the member countries of the Organisation of Islamic Conference (OIC).

The Islamic corporation for the development of the private sector (ICD) is a multilateral organization, affiliated with the Islamic Development Bank (IDB) Group. Its shareholders are the IDB, 45 Islamic member countries, and 5 public financial institutions from member countries.

The purpose of the International Islamic trade finance corporation (ITFC) is to promote trade of the member countries of the Islamic Development Bank through providing Trade finance and engaging in activities that facilitate intra-trade and international trade.

The Arab Bank for economic development in Africa (BADEA) was established pursuant to the decisions of 6th Arab Summit in Algeria on 28th November 1973. The Bank began operation in March 1975 with its Headquarters in Khartoum, capital of the Republic of Sudan. BADEA aims at consolidating economic, financial and technical cooperation between African countries and the Arab world.

EENI delivers to HRH Prince Alwaleed bin Talal a Master Honoris Causa

EENI in Arabic:
ماجستير في التجارة الخارجية و التسويق الدولي

Islamic, Development, Bank, IDB, ISTISNA'A, Shari'ah, Islamic Law, Unit of Account, Islamic Dinar, Modes, Financing, Islamic corporation, Insurance, Investments, Export, Credits, BADEA, ICIEC