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The Islamic Development Bank (IsDB) is to provide $104m (£67.3m) in loans to African governments to fund an expansion of Millennium Villages, the controversial project led by Jeffrey Sachs, director of Columbia University's Earth Institute. About $40m of the money will go towards a flagship sustainable villages programme (SVP) in Chad, Mozambique, and Sudan. In addition, $29m will support the extension of existing Millennium Village projects (MVPs) in Mali, Senegal and Uganda, while $35m will be used for a drylands initiative in Djibouti, Somalia and Uganda. Governments will team up with the IsDB, the Earth Institute, and its partner, Millennium Promise, to carry out the projects. The Millennium Village project covers more than 500,000 people in 14 areas of 10 countries in different environments across Africa. Each site was considered a "hunger hot-spot" at the time the project began in 2006. The concept works on the principle of interventions across several key areas – health, education, enterprise and agriculture – over a 10-year period.

Pakistan will reportedly receive 250 million Euros from the Islamic Development Bank (IDB) in the ongoing month of August, which is part of 750 million Euros loan. Similarly, the country will also avail the trade facility of $150 million for import of fertilizer and Petroleum products this month. The Islamic Development Bank had agreed to the loan and the trade facility in a meeting between the President of the Islamic Development Bank, Dr. Ahmed Muhammad Ali, and Pakistan’s Finance Minister Senator Ishaq Dar in Jeddah last week. Pakistan will also receive $500 million from Asian Development Bank and $500 million from World Bank in the second half (January-June) of the ongoing financial year 2013-14. Moreover, Pakistan is expecting to receive $3.4 billion from IMF during the current financial year. The loans will help building the foreign exchange reserves, which are currently around $10.25 billion.

The Federal Government of Nigeria has sought the support of the Islamic Development Bank for the provision of about $450m to expand the power transmission system to wheel up to 20,000 megawatts of electricity. According to Vice-President Namadi Sambo, more funds need to be injected in the transmission component. Sambo also called on the bank to consider the construction of a road linking Lagos to Abidjan, the capital of Côte d’Ivoire. Moreover, he requested the IDB to extend its support to the Nigerian private sector in the areas of education, aviation and agriculture. IDB has already approved the construction of four new science secondary schools in Kaduna State worth $17,9m; construction of a 300-bed specialist hospital in Kaduna State at $43.15m; and the Zaria water supply project worth $81.0m. Furthermore, the$32.40m Jigawa State rural development project and the bilingual education programme for Borno, Gombe and Niger states worth $30.53m are under consideration.

The Islamic Development Bank (IDB) has agreed to extend a loan facility of 750 million euros to Pakistan. The first tranche of the loan will be released before mid of the current month. The IDB will also provide a trade facility of $150 million for import of fertiliser and petroleum products. Besides, the IDB president informed the finance minister that Islamic Development Bank was keen to work with Pakistan for the eradication of polio in the country. The President of Islamic Development Bank, Dr Ahmed Mohammad Ali, assured the finance minster Mohammad Ishaq Dar, of the full cooperation and support of IDB for Pakistan.

Mohammed Obaidullah of the Islamic Development Bank highlighted the role of customers in strengthening Islamic banks and financial institutions by asking right questions and monitoring the bank’s activities and dealings. The customer is the driving force who can make Islamic banking move, he said while giving a lecture on the relevance of Islamic banking and finance in the modern world at the Islamic Education Foundation. Obaidullah called for the establishment of independent Shariah bodies to monitor and approve the activities of Islamic Banks. Moreover, Islamic banking and finance have become a strong industry that will not be shaken by defaulting of some institutions or individuals, he added emphasizing the importance of taking protective regulatory measures. Obaidullah hoped that India would soon get on the bandwagon of Islamic banking since the country could get the much-needed funds available in GCC countries for its infrastructure projects.

The Islamic Development Bank's board of executive directors has approved new finances worth $790 million to carry out different projects in member countries. The board agreed to give $220 million to the renewable energy program of the Development Bank of Turkey and $200 million for an electricity project in Damietta, Egypt. The new finances approved by the board will also benefit Morocco, Uganda, Pakistan, Burkina Faso, Mozambique, Yemen, Togo, Jordan and Mali. It has also agreed to provide grants to educational projects for Muslim communities in Kenya, Nepal and Congo. Moreover, the board discussed the decision taken by IDB governors to increase the bank's capital from $45 billion to $150 billion and arrangements to celebrate the bank's 40th anniversary.

The Board of Executive Directors of the Islamic Development Bank (IDB) has approved US $789.4 million to finance development projects in eleven member countries as well as education projects for Muslim communities in non-member countries. The BED approved US $220 million for the Turkey Development Bank program to finance renewable energy projects. Moreover, Uganda will benefit from US $120 million for the upgrading of road projects. The rest of the approvals include US $8 million for Niassa electrification project in Mozambique, US $7 million for a project on access to energy for rural communities in Togo and US $23.7 million to the government of Mali to address food insecurity in the country. The government of Pakistan received approval of US $35 million for the financing of the reconstruction of schools destroyed by the floods and US $19.8 million will go to a water supply project in Ouahigouya, Burkina Faso.

The Islamic Development Bank (ISDB) will disburse a loan of PKR 14.6 billion (USD 146 million) with a 0.5 percent interest rate per year to the Punjab provincial government of Pakistan. The money will be used for a microfinance facility that will provide interest-free loans to small enterprises in the province, which is home to approximately 90 million people. The Punjab government plans to provide an additional grant of PKR 5 billion (USD 49.9 million) to support the facility. The project reportedly is modeled after the Akhuwat Scheme, it will offer loans of the same size, and like the Akhuwat Scheme, this new facility will not accept deposits. As of July 2013, Akhuwat reported to the US-based nonprofit Microfinance Information Exchange (MIX) a gross loan portfolio of USD 15.1 million, approximately 140,000 active borrowers and operations in 162 branches across Pakistan.

Ghana and the Islamic Development Bank (IDB) have joined the African Legal Support Facility (ALSF). Ghana is now the 48th country to join the facility and the IDB the sixth international organization to become a member. The membership of the IDB shall be followed by the approval of an IDB financial contribution to the Facility of up to US$ 1 million, according to ALSF Director Stephen Karangizi. An independent body hosted by the African Development Bank (AfDB), the ALSF supports the AfDB's Regional Member Countries in the negotiation of complex commercial transactions and litigation brought against them by vulture funds. It also provides capacity building. The ALSF's goal is to ensure fair and balanced negotiations.

The Islamic Development Bank is considering a recent request by Egypt for $10 billion in funding for infrastructure development projects, to be provided over the next five years. On Monday, Egypt received a $300 million loan from the IDB to the Egyptian General Petroleum Corporation. The loan is part of a total $1 billion loan agreement signed by Egypt with the IDB in July of last year aimed at funding food and energy imports. Ahmed Mohamed Ali, head of the Islamic Development Bank Group reiterated the bank’s commitment to helping Egypt surmount its formidable economic challenges, having already granted it $6 billion in funds. Ali pledged to send an IDB team to Cairo to begin discussions on the requested $10 billion loan in September.

The Islamic Development Bank has proposed to buy Marocco's sukuk rather than offering the country another loan, according to General Affairs minister Mohamed Najib Boulif. However, the amount has not been set yet. Earlier this year, the Morocco agreed a $2.4 billion package with the IDB, under which it will receive $600 million each year from 2013 to 2016. It also raised $750 million last month in a two-part reopening of its $1.5 billion bond. The North African country is considering other financial reforms, such as that of the pension and tax systems. It will also deregulate prices for some basic goods in the next two weeks, its first step towards reducing subsidies. However, the timing has not been decided.

Fitch Ratings has affirmed the Islamic Development Bank's (IDB) Long-term Issuer Default Rating (IDR) at 'AAA' with a Stable Outlook and Short-term IDR at 'F1+'. IDB's ratings are underpinned by strong intrinsic features, primarily excellent capitalisation. The ratio of equity to assets has remained above 60% since inception. The ratio of debt to equity is low, at 57.5%. The bank also maintains a comfortable level of liquid assets, which more than fully covered its short-term liabilities. Moreover, credit risk is moderate. Fitch deems other risks like credit risk on treasury assets, interest rate risk and foreign exchange risk as well as the bank's risk on equity investments under control. Shareholders' support is also supportive of the rating since their willingness to support the bank is expected to remain strong.

Tunisia has won $1.2 billion in funding from the Islamic Development Bank (IDB), aimed at backing industrial, agricultural and trade projects. The IDB funding line will include loans and grants, and will be for three years, with disbursements of $400 million each year until 2015. The IDB has also given Tunisia a financial guarantee to issue a sukuk worth $600 million before 2014. Tunis is also in talks with Qatar about the Gulf state making a deposit at the Tunisian central bank with easy conditions. The assassination in February of opposition politician Chokri Belaid triggered the worst street violence since the revolution. Elections expected towards the end of this year will create fresh uncertainty. The state budget deficit is expected to rise to around 5.9 percent of gross domestic product this year from 5.1 percent last year.

The Islamic Development Bank, in collaboration with the Abdul Latif Jameel Poverty Action Lab (J-PAL) of Massachusetts Institute of Technology (MIT), USA organized a high-level training course on Impact Evaluation of Development Programs taking place at the IDB headquarters from 8 to 12 June 2013. The training program was delivered by renowned experts in the field. Impact evaluation seeks to respond to the growing demand of donors and beneficiaries for measurable results on development interventions carried out by development banking institutions around the world. The training supports IDB's drive to improve the quality of its interventions, and showcase results on the ground. The Islamic Solidarity Fund for Development (ISFD) coordinated the training program in collaboration with the Operations Policy and Services Department (OPSD) and the Group Operations Evaluation Department (GOED) of IDB.

At the 7th IRU Euro-Asian Road Transport Conference, the IRU, the Islamic Development Bank (IDB) and the Arab Union of Land Transport (AULT) unveiled the results of their 18-month joint project, aimed at achieving more trade and profitability, safer roads and faster border control procedures to help the economic integration of the Arab world at regional and global level. The project revolved around three main components: the development of professional training, a Truck Accident Causation Feasibility Study, and the implementation of a road transport facilitation strategy. An appropriate legal framework to effectively facilitate road transport is a prerequisite, as well as the removal of non-physical barriers, such as customs procedures formalities. The development of manager and driver professional training at the international standards was also identifies as key to effectively increase the industry's efficiency and safety.

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Senior Risk Management Specialist (Credit Risk)

Islamic Development Bank - in Jeddah (Saudi Arabia)
Job Description

The candidate should be able to:

Participate in the development and update of credit risk management guidelines, policies, procedures, methodologies, and models, which have direct impact on risk management function.
Undertake the country risk assessment exercise including the application of associated quantitative and qualitative scoring model, and preparation of country risk report.
Undertake risk assessment of financial/investment operations related to projects, corporates, financial institutions, equities, funds, etc. including the application of associated quantitative and qualitative scoring models, and independent review of due diligence, financing terms and conditions, risk mitigation, security package, and assignment of exposure limits.
Participate in due diligence mission related to financing and investment operations.
Monitor adherence to guidelines and policies at the Group level, report on deviation, and recommend on corrective actions.

This role is responsible for managing a business focus area for the ASAM Department which includes developing strategy, sourcing business, managing transactions/projects, managing transaction/project budget and finances, and maintaining client relationships.

The role is responsible for assisting project managers in financial analysis and modeling, drafting project deliverable, preparing client presentations / reports and general support in all aspects of transaction. Additionally assisting in developing pitch-books and concept notes in coordination with the project lead.

The Islamic Development Bank (IDB) will organise the first investment forum in Tunisia to be held as part of the Deauville co-operation.The event will take place in June 2013. Minister of Development and International Co-operation Lamine Doghri commended the offer presented by the IDB concerning the completion of the elaboration of a strategic partnership document with Tunisia (2013/2015).

The Islamic Development Bank's Board of Governors (BoG) has approved to more than triple the Bank's authorized capital to 100 billion Islamic Dinars (about US$150 billion) from 30 billion. The BoG also increased the Bank's subscribed capital from 18 billion to 50 billion Islamic Dinars. The capital increase reflects the Bank's strong balance sheet and the growing economic development needs of its 56 member countries. The Bank also announced it will immediately tap the public market with a US$1 billion offering of sukuk. The five-year offering is rated Triple A by each of the three major bond rating agencies (Standard & Poor's, Moody's and Fitch), and will be dually listed on the London Stock Exchange and Bursa Malaysia. The Bank has been designated as a Zero Risk Weighted Multilateral Development Bank by the Basel Committee on Banking Supervision and the Commission of the European Communities.