KUWAIT - The Islamic Development Bank (IDB), the largest development organisation in the Muslim world, is ready to finance Iraq infrastructure with $500 million, its president Ahmed Mohamed Ali al-Madani, said in Kuwait on Wednesday.

Donors and investors have gathered in Kuwait to discuss efforts to rebuild Iraq's economy and infrastructure as it emerges from a devastating conflict with Islamic State militants who seized almost a third of the country.

(Reporting by Maher Chmaytelli and Ahmed Hagagy; Writing by Ahmed Aboulenein; Editing by Alison Williams) ((ahmed.aboulenein@thomsonreuters.com; +964 790 191 7021; Reuters Messaging: ahmed.aboulenein.thomsonreuters.com@reuters.net))