Establishment
 
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, particularly Malaria, Tuberculosis (TB) and HIV/AIDS. 

 

Official Launching
 
 
The ISFD was officially launched during the 32nd Meeting of the IDB Board of Governors (BOG), held on 30 May, 2007 in Dakar, Senegal. The launching of the ISFD received wide publicity, as it was graced by H.E. Abdoulaye Wade, the President of the Republic of Senegal, and attended by the Heads of States of Burkina Faso, Guinea (Prime Minister) and Guinea Bissau; as well the President of the African Union, the IDB Governors and other high-level officials. The Fund commenced its operations in February 2008.            ​
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The Fund’s approved principal target capital is US$10 billion, consisting mainly of contributions by the IDB and its member countries. The Fund was established in the form of a Waqf (i.e. Endowment), which means that operations under the ISFD will be financed only from the returns on investment of its capital resources.
 
 
The ISFD can also utilize the funds derived from its financing operations or any other sources as deemed appropriate by the BOD/management –such as grants from member countries, Zakat, in-kind contributions or donations by philanthropists. Expenses related to the Fund (including facilities and services provided by the IDB) are charged against the income of the Fund.
 
 
Salient Features  
 
 
Although part of the IDB, ISFD is administratively keeps separate accounts and balance sheet. The Board of Executive Directors of the IDB is also the Board of Directors (BOD) of the ISFD and the IDB Board of Governors (BOG) is also the Board of Governors (BOG) of the ISFD.