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Jeddah-based Islamic Development Bank (IsDB) has launched the IsDB Concessional Fund (ICF), a new financing platform designed to address the urgent needs of its 27 least developed member countries (LDMCs).
The announcement was made by Muhammad Al Jasser, Chairman of the IsDB Group on Sunday during the Second AlUla Conference for Emerging Market Economies.
The ICF introduces a streamlined and expanded concessional financing framework fully aligned with the IsDB Group’s Ten-Year Strategic Framework (2026–2035).
The fund will deploy Shariah-compliant instruments, including multiple concessional modes of financing and targeted grants for fragile contexts–to alleviate debt burdens while catalysing high-impact investments across priority sectors, including:
- Human capital development
- Food security
- Essential infrastructure
- Climate resilience
Allocations from the ICF will be guided by a rigorous, evidence-based methodology that prioritises countries facing the most severe vulnerabilities.
The framework assesses indicators such as per capita income levels, debt sustainability, exposure to fragility, and susceptibility to external shocks, ensuring resources are channelled to member states with the greatest development needs.
Furthermore, the ICF will be underpinned by:
- Allocation of 20 percent of the IsDB’s annual net income
- Periodic replenishments from member countries
IsDB reported a net income of 388.1 million Islamic dinars (approximately $516 million), according to its 2024 Annual Report.
IsDB Group chief Al Jasser affirmed that the Fund aims to triple concessional financing to approximately 15 percent of the Bank’s annual approvals, “fostering partnerships, sharing knowledge, and unlocking co-financing that multiplies the impact of every dollar invested.”
He also acknowledged the significant financial and moral support of the Saudi Arabia and Kuwait in creating the ICF.
As of February 2026, the IsDB consists of 57 member countries. At the end of 2024, the total subscribed capital stood at ID 58.7 billion ($78 billion).
(Writing by P Deol; Editing by Anoop Menon)
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