Islamic Development Bank meeting in Jakarta

Islamic Development Bank meeting in Jakarta

JAKARTA – Anadolu Agency
Islamic Development Bank meeting in Jakarta

Political and business leaders from Muslim countries have met in Indonesia to review last year’s activities by the Islamic Development Bank Group (IDB).

Representatives of 56 member nations, as well as the bank’s governing board, came together at the 41st IDB annual meeting in Jakarta on May 15.  

Turkey is being represented by Deputy Prime Minister Mehmet Şimşek at the event, which will run until May 19. 

Speaking to Anadolu Agency before the meeting, the bank’s president, Ahmad Mohamed Ali, said Turkey was best-positioned to take advantage of IDB Group solutions through the joint support of many entities via the bank’s gateway office.      
 
The bank has provided financing worth more than $115 billion to member countries in total since commencing operations 41 years ago. It has granted $9.2 billion to Turkey for 459 projects and has offices in Ankara and Istanbul.        

“This is particularly appropriate as Turkey’s strategic challenges of enhancing productivity and competitiveness are equally relevant for all group entities,” Ali added.        

Ali said the IDB group was thankful to the Turkish government for the successful implementation of the first Member Country Partnership Strategy (MCPS) for Turkey between 2010 and 2013, when the state received $2.2 billion in financing from the bank.

“The IDB Group is preparing to undertake the next MCPS (2016-2018) in line with the government’s Medium-Term Development Plan to support its development objectives and growth targets under the 2023 Vision through the 25 transformation programs,” Ali added.        

In 2015, the IDB Group recorded an unprecedented amount of approvals worth $1.83 billion, representing 21 percent of the total since the bank’s inception.        

Ali said the bank appreciated the Turkish government’s efforts to boost the participation banking industry, noting that it was “a privilege for the IDB to contribute to these efforts.”

There are currently six Islamic banks operating in Turkey: Albaraka Türk, Bank Asya, Kuveyt Türk, Türkiye Finans, Ziraat and Vakif.        

Ziraat and Vakif are state banks that have recently launched Islamic branches. Halkbank, another state-run conventional bank, is expected to also begin its own Islamic operation.    
    
Islamic banking comprises 5 percent of the total banking system in Turkey, although the government has said it aims to increase this figure to 15 percent by 2023.        

Ali said the bank also fully supported Turkey’s plans to develop Istanbul as an international financial center.        
“Indeed, IDB Sukuk is currently listed on Borsa Istanbul. Moreover, the Bank Group continues to organize several workshops, seminars, training programs and conferences aiming at promoting the industry,” Ali said.        
The IDB was established on Dec. 7, 1973, by members of Organization of Islamic Cooperation (OIC) and officially started operating on Oct. 20, 1975. The bank aims to contribute to the social and economic development of member countries and Muslim communities individually in line with the principles of Islam.      
Establishing a new Islamic “megabank” within the year is also on the agenda of the Jakarta meeting.
Turkey’s government has requested that the Islamic Development Bank found such a facility in Turkey. Indonesia has made a similar request, Şimşek said earlier this month.