BAKU, Azerbaijan, Feb.9. The Islamic Development Bank (IsDB) has launched the IsDB Concessional Fund (ICF), a new financing initiative aimed at supporting its 27 least developed member countries, the bank said, Trend reports.
The fund was unveiled at the Second AlUla Conference for Emerging Market Economies. It provides Shariah-compliant concessional financing and targeted grants to alleviate debt burdens and support investments in human capital, food security, essential infrastructure, and climate resilience.
Allocations will be guided by a framework assessing per capita income, debt sustainability, and exposure to fragility and external shocks, prioritizing countries with the greatest development challenges. Funding will be directed toward projects aligned with national development plans.
The ICF is backed by 20% of the bank’s annual net income and periodic replenishments from member countries, aiming to triple IsDB’s concessional financing to roughly 15% of annual approvals, the bank said.
Dr. Muhammad Al Jasser, IsDB Chairman, said the fund was designed to strengthen partnerships, mobilize co-financing, and increase the impact of every dollar invested. He acknowledged support from Saudi Arabia and Kuwait in establishing the fund.
The ICF is part of the IsDB Group’s Ten-Year Strategic Framework (2026-2035) and represents an effort to accelerate sustainable development and resilience in the world’s most vulnerable economies.