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
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.
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.
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 of the ISFD and the IDB of the ISFD and Board of Governors
(BOG) of the ISFD.