JEDDAH: President of the Islamic Development Bank (IDB) Ahmed Mohammed Ali said yesterday that his bank’s assets and investments had not been affected by the global financial crisis.
“Our financial resources and capabilities are completely safe from the crisis,� he said, while addressing the concluding session of a three-day community development workshop for leaders of NGOs operating in 16 non-member countries. “Our financial operations are safe because we follow the principles of Shariah and the main reason for the present crisis is debt-selling, which is prohibited by Shariah,� Ali said.
However, Ali conceded that some IDB member countries had been affected by the crisis. “We’ll mobilize new financial resources, not only to boost IDB’s operations but also to support the crisis-stricken members.�
The IDB president urged Muslim NGOs to focus on the education so that the coming generations may play a greater role in the development of their countries and communities.
Muhammad Hassan Salem, head of the Special Assistance Office, distributed certificates to the participants in the presence of Malek Shah Yusoff, head of the scholarship program, and other officials.
Mamoon Al-Azami, community development specialist and one of the main organizers of the workshop, said unlike other international financial institutions, the IDB is not dominated by countries that hold big stakes. Saudi Arabia has a 28 percent stake in the bank, which has a capital of $30 billion. “The IDB is the only development bank in which Western industrialized countries do not have shares,� he said.
Mohammed Ahmed Salem, project officer, said Muslim communities in non-member countries of the IDB would receive special assistance up to $300,000 from the bank in order to carry out educational, health and social development projects.
He said the bank distributed more than $232 million in financial assistance to implement such projects in 25 years. “Our department also provides relief to people affected by natural and man-made disasters, especially to rebuild hospitals and schools,� Salem told the workshop.
The IDB holds such workshops during the Haj season for the benefit of NGO representatives who come for the annual pilgrimage and who want to improve their management capabilities.
Salem said registered nonprofit organizations that are capable of managing institutions could apply for the assistance, adding that IDB experts would evaluate the efficiency of such organizations before sanctioning assistance.
Approval will depend on the number of beneficiaries, quality of service, jobs created, and the Muslim population in the target area and their socio-economic conditions. The IDB will generally provide 50 percent of the project’s costs. “By providing this assistance, the bank encourages the community to mobilize the remaining funds required to carry out its projects,� Salem said.
Asked why there was a delay in carrying out IDB-financed projects, Salem said it could be due to the inefficiency of the organization, legal problems or delays in government approval. More information about special assistance can be obtained from the bank’s website, www.isdb.org.
Salem emphasized the importance of project sustainability and urged NGOs to know in advance how to manage their institutions and be able to cover future expenses. He proposed the setting up of income-generating endowments to meet expenses.
The bank sanctions assistance after strict verification of the project and its feasibility and relevance. “We receive hundreds of applications every year and select about 40 to 45 projects among them,� Salem said. “We will consider applications of organizations that have proven capability to run their projects efficiently.�
P.K. Abdul Ghafour, Arab News