The decision to establish the Islamic Solidarity Fund for Development (ISFD) was reached by the Third Extraordinary Session of the OIC Summit held in Makkah Al-Mukarramah on 05-06 Dhul Qadah, 1426H (07-08 December, 2005). The Summit decided to establish a special fund within the IDB with a view to:

(a) Reduce poverty,

(b) Build the productive capacities of member countries,

(c) Reduce illiteracy, and

(d) Eradicate diseases and epidemics,depending on its paid capital (US$ 2.548 million)