IsDBAnnual Report
2022

It has been another challenging year, during which the landscape has been dominated by the lingering effects of the COVID-19 pandemic and the ongoing uncertainty caused by the Eastern European crisis. Given this political and economic instability, it is perhaps unsurprising that there is a heightened risk of debt unsustainability in many low-income countries.

Simultaneously, climate change is triggering an escalation in natural disasters and an accelerated weakening of biodiversity. More than ever, global cooperation is required to mitigate its impact on humanity. The IsDB has been at the forefront of global, regional, and national endeavors to help member countries in their quest for long-term sustainable growth and development.

In this regard, new partnerships were forged, and old ones renewed with several institutions, including the Arab Petroleum Investment Corporation (APICORP), the International Monetary Fund (IMF), the Organization of Islamic Cooperation (OIC), Saudi Fund for Development (SFD), UN Refugee Agency (UNHCR), and World Health Organization (WHO). Our collaboration with the Arab Coordination Group (ACG) and the Kingdom of Saudi Arabia aims to deliver a comprehensive food security response package worth a minimum of US$10 billion, with IsDB contributing US$10.5 billion. Furthermore, IsDB and ACG partners announced at the UNFCCC COP27 US$24 billion for climate finance initiatives.

The landmark Strategic Framework Agreement signed with the WHO draws on lessons from the pandemic. It sets a roadmap to jointly support health-related Sustainable Development Goals, particularly in low-income and fragile countries.

During 2022, our operations focused on three key areas – (i) boosting recovery, (ii) tackling poverty and building resilience, and (iii) driving green economic growth. In addition, IsDB played a vital role in the high-level United Nations Crisis Response Group, formulating guidelines and policies and mobilizing resources.

IsDB Group operations have predominantly supported the post-COVID-19 recovery during 2022 with US$10.5 billion, out of which IsDB provided US$3.0 billion, ITFC (US$6.8 billion), ICD (US$0.6 billion), and US$11.6 billion of business insured by ICEIC. The Bank is ready to respond to the needs of its member countries as we navigate the crises together, building resilient and green economies.

I sincerely thank our shareholders for their continued confidence in the Bank, evidenced by their unequivocal support for the 6th General Capital Increase, helping us maintain our AAA rating for the 20th consecutive year. This is crucial to our efforts in tackling the ongoing challenges, building resilience, and charting a course for long-term sustainable growth for our member countries and their achievement of the Sustainable Development Goals. They have placed their unwavering trust in our institution, and we remain steadfastly committed to helping them build resilience and achieve sustainable socio-economic development. I also thank the IsDB staff; our achievements would not have been possible without their relentless commitment.

In 2023 and beyond, we will continue to rely on critical, creative, and diverse thinking while remaining proactive in shaping the direction of economic development by strengthening and leveraging our know-how, networks, and resources.

The recovery from the COVID-19 pandemic has been subdued, uneven and unpredictable, hindered by escalating food and energy prices and global economic instability triggered by the Eastern European crisis. As we move into 2023, there is a proliferation of humanitarian crises throughout the world – earthquakes in Türkiye and Syria; flooding in Pakistan; conflict and drought in some other Member Countries – all compounded by the ever-present and destructive effects of climate change.

Already impacted by the slow recovery from the COVID-19 pandemic, many of our member countries (MCs) are experiencing stretched fiscal budgets and many more millions of men, women and children are living in poverty, suffering from hunger or being displaced from their homes. In response to the fragile international landscape, the IsDB has realigned its strategy to take into account the assorted needs of its member countries – poverty reduction, resilience building and green growth – and is collaborating with other development partners to provide the necessary resources.

While the Bank concludes its short-term COVID-19 response program, it has augmented its operations to counter the food crisis, tackle chronic poverty, and build resilience in the wake of the Eastern European crisis. Annual net approvals of the IsDB Group increased by 18.6% to reach ID7.9 billion (US$10.5 billion) in 2022, up from ID6.3 billion (US$8.9 billion) in 2021. Out of the net approvals, US$3.0 billion was approved by IsDB, US$6.8 billion by ITFC, and US$0.6 billion by ICD. The 2022 operations were geared toward achieving resourceful partnerships, tackling poverty and ensuring food security, building resilience, and driving green economic growth.

Highlights from our work in these domains are set out here.