The Islamic Development Bank (IsDB) was established in 1974 and formally opened the following year. It is an Islamic financial institution designed to help the economic development of member countries individually and jointly by sticking to Sharia Law. Every year the IsDB hold an annual meeting with representatives from its 57 member countries.
In April 2018 the annual IsDB Group annual meeting took place in Tunis, Tunisia. This event and its outcomes should be of importance to anyone interested in blockchain transactions or forex trading, as it can have a great financial impact on currency prices across the world.
In summary, a range of reports were launched, grants made, funding initiatives set up and pricings debated. These ranged from Egypt being allocated $3 billion to support development projects, to a major report released that focuses on transforming agriculture and rural development across its countries.
One of the largest bits of news to come out of the annual meeting was the IsDB president Bandar Hajjar claiming that the development model of the Muslim world needs to change. This is because it heavily relies on state institutions currently, with the co-operation of private and public sectors required to address a $3 trillion gap in infrastructure. A fund was established to carry out feasibility studies for financing such change.
Previous and Ongoing Projects
With over 40 years of the IsDB, there have been many successfully completed projects thanks to the allocation of funds and reporting on progress at annual meetings. The Gao Bridge in Mali was one such project that was financed by the IsDB, to connect the Gao region to the heartland of Mali for improving and encouraging trade.
A loan from the IsDB helped Azerbaijan’s government rebuild its Khanarc canal too. While there are ongoing projects such as modernising road planning and design in Yemen to better connect isolated communities, and scholarship programs being introduced.
Israel and the IsDB
For Israel, which is not a member of the IsDB due to being a Jewish nation, the meetings don’t have a direct effect on it. However, being one of the few countries in the Middle East not a member of the IsDB, the scheme has donated to improving health in the country by helping to fund hospitals and provided money towards schools and vocational training centres in refugee camps within the nation.
This is because despite being a Jewish country there is still a large Muslim population, and the IsDB takes a big interest in the ongoing conflict with Palestine. IN the past the IsDB has called on member nations to spend more funds and efforts on trying to alleviate suffering in the region. Israel will be keeping a close eye on any further funding agreements as while a lot goes towards aid, some does sponsor the Palestinian authorities’ operations.
The Impact for Traders
Funding and plans agreed at the annual IsDB meeting are designed to help generate growth for many countries mainly based in northern Africa and the Middle East. These can improve trade between such nations and in the future GDP of the countries.
These can have a direct impact on the currency value too, as a large grant or loan used wisely can generate growth. Therefore traders should see which countries benefit most at the annual meeting and consider following their development and possibly investing in the currency if they believe it will lead to greater prosperity.
Review what happened at the recent IsDB meeting and make it a part of your economic calendar for helping to define trading strategies.