IsDB Group drives sustainable trade, entrepreneurship with 2024 milestones

The Islamic Development Bank (IsDB) Group and its member institutions have announced a series of strategic achievements and initiatives aimed at strengthening sustainable trade, fostering entrepreneurship, and reinforcing financial stability. 

The announcements, which include the release of the International Islamic Trade Finance Corporation’s (ITFC) 2024 Annual Development Effectiveness Report (ADER), the launch of an entrepreneurial flagship program by the Islamic Development Bank Institute (IsDBI), and a reaffirmed AA- credit rating for the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), underscore the Group’s commitment to inclusive growth and innovation across its member countries.

ITFC showcases sustainable impact and resilience

The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-IDB.org), a key arm of the IsDB Group, released its 2024 ADER, a comprehensive report tracking its development outcomes and progress toward sustainable trade and economic resilience.

The report highlights US$2.66 billion allocated to Least Developed and Member Countries (LDMCs), representing 38% of ITFC’s total portfolio. In addition, US$268 million directly supported over 380,000 smallholder farmers, enabling the procurement of 840,000 metric tons of local agricultural products.

To secure critical supply chains, ITFC disbursed US$4 billion to the energy sector, bringing reliable electricity to 13.8 million households, while its food security initiatives provided 5.6 million metric tons of essential commodities valued at US$1.45 billion, benefiting over 30 million households.

Private sector participation was also strengthened through financing for 312 SMEs and corporates via 23 partner financial institutions, and intra-OIC trade financing reached US$4.8 billion. Capacity-building programs impacted over 3,100 individuals, with women representing nearly 40% of participants.

Eng. Adeeb Y. Al Aama, CEO of ITFC, emphasized the institution’s commitment to innovation and inclusivity: “The ADER showcases ITFC’s ability to provide impactful solutions that meet the evolving needs of our member countries. We remain focused on building a more inclusive, resilient, and sustainable future.”

The report also noted the adoption of ITFC’s first Environmental and Social (E&S) Policy and a Ten-Year E&S Action Plan, embedding sustainability deeper into its trade finance operations while advancing multiple UN Sustainable Development Goals (SDGs), including poverty reduction (SDG 1), food security (SDG 2), and clean energy access (SDG 7).

Entrepreneurial Mindset Development Program launched

The Islamic Development Bank Institute (IsDBI) (www.IsDBInstitute.org) has partnered with Prince Mohammed Bin Salman College of Business & Entrepreneurship (MBSC) to launch the Entrepreneurial Mindset Development Flagship Program.

The program aims to empower a new generation of entrepreneurs across IsDB member countries and global Muslim communities, equipping them with skills to drive innovation, ethical business practices, and economic inclusion.

Participants will benefit from world-class faculty, immersive learning modules, and peer networking opportunities, with the program combining online learning with in-person sessions at MBSC’s campus in King Abdullah Economic City.

Dr. Sami Al-Suwailem, Acting Director General of IsDBI, remarked: “Our strategic collaboration with MBSC reflects our commitment to fostering sustainable development through entrepreneurial innovation and dynamic learning experiences.” Professor Zeger Degraeve, Executive Dean of MBSC, added that the program demonstrates a “shared commitment to expanding opportunities and delivering world-class business education.”

ICIEC maintains strong AA- rating

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) (http://ICIEC.IsDB.org), the Shariah-compliant multilateral insurer of the IsDB Group, achieved another milestone as Standard & Poor’s (S&P) reaffirmed its AA- financial strength and issuer credit rating with a stable outlook. This rating remains the highest among its global peers.

S&P’s report cited ICIEC’s robust capital adequacy, exceptional liquidity buffers, and steadily increasing profitability, alongside its strong Enterprise Risk Profile and Preferred Creditor Treatment (PCT) under the Multilateral Lending Institutions framework.

ICIEC’s Financial Risk Profile was assessed as “very strong” for the second consecutive year, with capital adequacy significantly exceeding the 99.99% confidence level under S&P’s risk-based capital model.

Dr. Khalid Khalafalla, CEO of ICIEC, praised the reaffirmation as recognition of the Corporation’s prudent governance and strategic role: “Aligned with the IsDB Group’s direction, we remain committed to supporting member states through advancing Islamic finance, green financing, ESG integration, and food security.”

Together, the ITFC’s development milestones, IsDBI’s entrepreneurship initiatives, and ICIEC’s reaffirmed financial strength highlight the IsDB Group’s integrated strategy to promote sustainable trade, economic diversification, and human capital development.

As the Group continues to navigate global economic challenges, these initiatives reaffirm its leadership in driving transformative development, leveraging Islamic finance principles to foster resilience, innovation, and inclusive growth across its member countries.