The Islamic Solidarity Fund for Development (ISFD) serves as the poverty alleviation arm of the Islamic Development Bank. To better deliver on its poverty reduction mandate, ISFD recognizes the role played by its donors and partners to increase its concessional loan and grant resources and impact on the ground, especially in the hard-to-reach communities.
ISFD is dedicated to improving its services for various vulnerable groups, including the impoverished, youth, women, and marginalized populations. By addressing the unique needs of these segments of society, ISFD aims to uplift their lives and provide them with the support they require to overcome obstacles and achieve sustainable development.
The Islamic Solidarity Fund for Development (ISFD) was established in 2005 as a special fund within the Islamic Development Bank (IsDB) with the aim of:
fighting poverty and promoting pro-poor economic growth in member countries,
providing financial support to enhance the productive capacity and sustainable means of income generation for the poor, and
advancing human development, especially reducing illiteracy and eradicating diseases/epidemics.
As the poverty alleviation arm of the IsDB Group, ISFD focuses on contributing to the enhancement of the least privileged communities in the least developed member countries.
The Fund’s Priority Areas include Human capital development (education, health, water, and sanitation) and Economic Empowerment (especially for MSMEs, Women, and Youth in strategic sectors such as Agricultural and Rural Development).
It contributes to the various programs and projects and targets the development of the member countries in the human capital development and economic empowerment areas.
The ISFD has an approved capital of US$10 billion.
By the end of 2023, the capital commitments had reached a total of US$2.610 billion, which represented 26% of the target capital. The paid-up capital reached US$2.534 billion at the end of 2023, with member countries contributing US$1.534 billion and the IsDB US$1 billion.
Investment of Capital Resources
At year-end 2022, the total assets of the Fund increased by US$ 37 million to US$ 3,180 million compared to US$ 3,143 million at year-end 2021.
Treasury assets represented 67% of total assets.
The Fund’s resources at year-end 2022 stood at US$3,045 million, reflecting a net increase of US$46 million versus the year-end 2021 balance of USD 2,999 million.
The ISFD reported US$ 49.3 million net income for the year ended 31 December 2022, up by US$32.8 million from the US$16.5 million net income reported in the corresponding year ended 31 December 2021.