JEDDAH — The Islamic Development Bank (IDB) will issue Sukuk (Islamic bonds) in order to collect funds from the international market place so as to support member countries affected by the global financial crisis.
“IDB has set up a committee to study the various aspects and effects of the global financial crisis and identify resources to finance investment projects in Muslim countries,” the Saudi Press Agency (SPA) quoted Ahmed Mohammed Ali, Bank president, as saying on Wednesday. Ali said that seeking new financial resources was essential, anticipating substantial decline in foreign investment as a result of the global recession. IDB has increased its capital from 8.2 billion to 15 billion Islamic dinars ($25 billion) to meet development requirements of member countries.’
He added that IDB’s deposits and assets had not been affected by the financial crisis. “Our funds are invested in secure Islamic portfolios, which are not affected by speculative business,” he said.
He said a team of experts led by former Malaysian Prime Minister Mahathir Mohammed has been formed to set out a new vision for the bank. The first task of this team will be to oversee the bank’s administrative reform and devise plans to improve its efficiency. — |
