By Eman Al-Awadhi, KUNA,
Kuwait : The initiative announced by His Highness the Amir of Kuwait for establishing a fund for “good living” in Muslim states is the first outcome of the Fourth World Islamic Economic Forum (WIEF) and is considered an icon of the event, said President of the Islamic Development Bank (IDB) Dr. Ahmad Mohammad Ali.
Speaking to KUNA on the sidelines of the forum, which kicked off yesterday under the auspices of His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, he said, “The first outcome (of this forum) is the initiative announced by His Highness the Amir of Kuwait concerning the establishment of the fund. We consider it an icon of this forum, and we are very grateful for it.” He added that such an initiative did not come as surprise “because Kuwait plays an important role in providing assistance to developing countries,” adding that not only did it established the first development institution in the region (Kuwait Fund for Arab Economic Development), but also participated “generously” in many international organizations such as the World Bank, the IDB, and the Arab Fund for Economic and Social Development.
At the inauguration of WIEF yesterday, His Highness the Amir announced the donation of USD 100 million for the establishment of a fund for “good living” in Muslim countries, aimed at providing basic foodstuff for those in need , to contribute to programs aimed at increasing agricultural products, and for cooperation in similar initiatives.
Asked about the IDB’s relationship with WIEF, Dr. Ahmad explained that IDB was a very important instrument for promoting relationships between businessmen and policy-makers in member states of the Organization of the Islamic Conference (OIC) and “provides a platform for exchange of information among businessmen in our member countries.” He said the bank played an important role in enhancing cooperation among OIC members, adding that “IDB provides support to the WIEF and there are also a number of joint programs that are being conducted.” On the IDB’s Islamic Solidarity Fund for Development, aimed to reduce poverty in the Muslim world, he expressed gratitude to Kuwait’s contribution of USD 300 million to this fund, adding that efforts were being made to reach the target placed by its board of governors — USD 10 billion.
So far, USD 2.62 billion had been contributed, including USD one billion from IDB resources and USD one billion from Saudi Arabia.
Dr. Ahmad hoped that more OIC member states would declare contributions to the fund.
On the fund’s projects, he said two programs had just been approved by the board of governors; one for micro-financing and the second for vocational training. The capital of each is USD 500 million of which the fund will contribute USD 100 million with the remaining finances mobilized from other financial institutions.
He hoped that these programs would be launched soon.
The IDB president also said that the bank had intensive programs in OIC member states in the areas of infrastructure, social development, education, health, agriculture, and technical assistance.
He noted that the bank served to promote trade among member states through the Islamic Trade and Financing Corporation (ITFC), one several separate entities the IDB had established.
“Inter-trade among OIC member states is at 14-14.5 percent at present, and we hope to achieve the target set by the OIC Summit in Makkah — 20 percent — within the coming ten years,” he said.
To conclude, he hoped that “something practical would come out of the WIEF … by that we mean specific recommendations that would help in enhancing cooperation among businessmen in our member countries.” The IDB is an international financial institution established in December 1973. The inaugural meeting of the Board of Governors took place in July 1975, and the bank was formally opened in October 1975. The purpose of the bank is to foster the economic development and social progress of OIC member countries and Muslim communities individually as well as jointly in accordance with the principles of Islamic Sharia (law).